Imperial Brands (LSE:IMB) reported modest revenue growth for the six months ended 31 March 2026, with tobacco and next-generation product (NGP) net revenue rising 1.8% as pricing strength in traditional cigarettes and continued expansion in reduced-risk products helped offset lower sales volumes.
Adjusted operating profit increased 0.6% during the period, while adjusted earnings per share climbed 5.3%, supported by strong cash generation and a cash conversion rate of 98%. However, reported operating profit declined significantly due to costs associated with the Delaware legal settlement and investment tied to the company’s long-term 2030 Strategy.
Imperial Brands continued to expand its next-generation portfolio, delivering double-digit NGP growth across Europe and the company’s AAACE region, which covers Africa, Asia, Australasia, Central and Eastern Europe, and the Middle East. The group also reported market share gains for its heated tobacco products and newly launched reusable vape systems in several key territories.
Management reaffirmed full-year guidance and highlighted progress toward its target of delivering £320 million in annual cost savings by 2030. The company is also continuing manufacturing rationalisation initiatives and recently entered into a strategic partnership with Capgemini to strengthen its data analytics and artificial intelligence capabilities.
Shareholder returns were further enhanced through an expanded share buyback programme and a 4% increase in the interim dividend.
The company’s outlook remains supported by resilient operational performance, constructive technical indicators and an attractive valuation profile. While debt management, regulatory risks and cash flow discipline remain important considerations, ongoing strategic execution and operational efficiency measures are viewed positively by the market.
More about Imperial Brands
Imperial Brands is an international tobacco and next-generation nicotine products group operating across Europe, the United States and a range of growth markets in Africa, Asia and the Middle East. Its portfolio includes combustible cigarettes, heated tobacco products, vaping devices and oral nicotine offerings. The company is focused on strengthening its position as a challenger brand through consumer-led innovation, supply chain efficiency and data-driven operational strategies.
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