Tobacco maker Imperial Brands has reported a 10.8% increase in sales in its 'next-generation products' division in the year to 30 September, with its tobacco division seeing sales rise by 1.3%.
At group level, net revenue was up 1.5% at the Winston and Lambert & Butler owner, to £7.79 billion (€8.86 billion).
Sales in its tobacco division totalled £7.58 billion (€8.62 billion), while sales in next-generation products came in at £208 million (€236.5 million), the group said.
Pricing Boost
Revenue growth was largely driven by pricing, with tobacco price/mix rising by 6.0% over the year (and by 10.7% in H2), offsetting volume declines of 4.7% (-8.4% in H2).
“In line with our five-year strategy, increased investment and a more consumer-centric approach have improved delivery in both our priority combustible markets and our next generation product operations," commented Stefan Bomhard, Imperial Brands chief executive.
"At the same time, disciplined capital allocation has strengthened our balance sheet to reach our target leverage. This has enabled us to enhance shareholder returns through an ongoing share buyback programme alongside a progressive dividend."
In tobacco, the group has increased its focus on its top-five priority markets, USA, Germany, UK, Australia and Spain, four of which reported market share gains over the year, with Germany reporting declines.
'Stepping Up Investment'
In next-generation products, Bomhard said that the group was "stepping up investment" in new product and market launches, with the launch of its heated tobacco proposition, Pulze and iD in Czechia and Greece, following recent launches in Portugal, Hungary and Italy.
It said that consumer and trade feedback on its next-generation products has 'validated' its strategy in this area, and it plans further investment and market expansion in the coming full year.
© 2022 European Supermarket Magazine – your source for the latest A-brand news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
