Imperial Brands expects strong growth in Next Gen category

Imperial Brands has confirmed it is trading in line with expectations for FY24, with significant growth in its Next Generation Products (NGP) segment driving its performance.

In its pre-close trading update on Tuesday, the company said it expects a 20-30 per cent increase in NGP net revenue, reflecting strong product innovation and expanded market presence. This growth has been bolstered by launches under the blu brand, the introduction of iSenzia heat sticks, and new oral nicotine pouches in the US market.

Imperial Brands’ five-year transformation strategy continues to deliver, with stable market share across five priority markets, including gains in the US, Spain, and Australia. Despite challenges in Germany and the UK, overall performance remains solid, underpinned by strong pricing in traditional tobacco products.

In addition to the growth in NGP products, Imperial Brands also reduced operating losses in this segment, reflecting improved profitability. The company’s group adjusted operating profit is expected to grow in line with guidance, with reduced losses helping to drive strong results across all three of its regions.

The FY24 annual dividend has been increased by 4.5 per cent to 153.43 pence per share, and Imperial Brands has announced plans to enhance shareholder returns in FY25, including a £1.25 billion share buyback—a 13.6 per cent increase over FY24 share buyback of £1.1 billion. The company also plans to move towards four equal quarterly dividend payments to provide smoother cash returns to shareholders.

Imperial Brands will announce its annual results for the year ending 30 September 2024 on 19 November.