Key Takeaways
- Imperial Brands reiterated its FY26 guidance for low-single-digit tobacco net revenue growth, double-digit NGP net revenue growth, 3.00% to 5.00% Group adjusted operating profit growth, at least high-single-digit EPS growth, and at least GBP 2.2 billion in free cash flow.
- The company said tobacco and NGP net revenue are expected to grow by a low-single-digit percentage in H1, while Group adjusted operating profit should be slightly higher year on year and accelerate in H2.
- Imperial Brands said it has completed GBP 0.7 billion of its GBP 1.45 billion FY26 share buyback, including the remaining GBP 0.1 billion announced in October 2024.
- The company said Europe and AAACE are driving NGP performance, supported by Pulze 3.0, the blu kit range, and new Skruf and Zone launches.
- Imperial Brands will announce interim results for the six months ended March 31, 2026 on May 12, 2026.
2Firsts, April 14, 2026
According to Imperial Brands’ trading update, the company reiterated its full-year FY26 guidance and said it has made a positive start to its 2030 transformation. Imperial Brands said it continues to expect low-single-digit tobacco net revenue growth, double-digit NGP net revenue growth, 3.00% to 5.00% growth in Group adjusted operating profit, at least high-single-digit earnings per share growth, and at least GBP 2.2 billion in free cash flow for the full year.
The company also said the conflict in the Middle East has made the geopolitical and macroeconomic environment more uncertain, although there has been no material business impact so far, and that it will provide a further update with its H1 results on May 12.
Low-single-digit H1 growth is expected, with stronger momentum in H2
The company said tobacco and NGP net revenue in H1 are expected to grow by a low-single-digit percentage. Tobacco net revenue is expected to show low-single-digit growth, supported by robust pricing and a low-single-digit decline in combustible volumes. NGP net revenue is expected to grow by a mid-to-high single-digit percentage, with double-digit growth in the Europe and AAACE regions. Imperial Brands said this performance is being driven by continued momentum in heated tobacco through Pulze 3.0, particularly in Italy and Greece; by the blu kit range in vape; and by recent launches of Skruf and Zone in modern oral across the Nordics and the UK.
The company also said that while market share remains important, it continues to balance share and value and is increasingly focusing on more profitable segments after stabilizing aggregate share across its top five markets. As a result, it expects some modest overall aggregate share reduction across those markets in H1, alongside growth in tobacco adjusted operating profit. Group adjusted operating profit is expected to be slightly higher year on year, with strong performance in Europe and the wider AAACE portfolio partly offset by the U.S., Australia, and Logista. The company said performance remains weighted to the second half.
U.S. performance, buybacks, and cash flow remain in focus
Imperial Brands said that in the United States, Zone continues to perform well and maintain volume share, although NGP net revenue is expected to be lower than the same period last year because of heightened promotional activity. The company said tobacco and NGP net revenue and adjusted operating profit growth in the U.S. are expected to accelerate in the second half, supported by combustible price increases already taken in H1, planned H2 price increases, the March launch of the Malibu cigarette brand, and recent new flavor launches for Zone together with a targeted channel strategy.
Imperial Brands also said its adjusted operating cash conversion remains strong on a 12-month basis, and it remains on track to deliver at least GBP 2.2 billion in free cash flow for the full year. On share repurchases, the company said it completed the remaining GBP 0.1 billion announced in October 2024 and had completed GBP 0.7 billion of its GBP 1.45 billion FY26 programme as of March 31, 2026. Imperial Brands said the combined total represents about 3.2% of issued share capital as of September 30, 2025, and reiterated its commitment to returning surplus capital through its ongoing evergreen share buyback programme to 2030 alongside a progressive dividend policy.
The company says its 2030 transformation has started well
Imperial Brands said it has made a good start to its 2030 strategy and continues to move toward becoming a more consumer-centric, data-led, agile, and efficient challenger. During the first half, it began implementing its new long-term partnership with Capgemini, took further action on its supply chain footprint, and continued the rollout of enterprise IT applications. The company also confirmed that interim results for the six months ended March 31, 2026 will be announced on May 12, 2026.
Image Source: Imperial Brands
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