On May 16th, Imperial Brands reported that their profit had increased thanks to successfully raising tobacco product prices to offset declining sales. The company also saw a nearly 20% increase in revenue from their next generation tobacco products (NGP).
Imperial Tobacco's adjusted operating profits grew by 0.8% to £1.6 billion ($2 billion) and revenue increased by 0.3% to £15.41 billion ($19.62 billion) in the six months ended on March 31st.
While the traditional cigarette market is decreasing, Imperial Tobacco has been able to increase its market share in the past six months by taking advantage of price increases. The company reported that in its five key markets - the United States, Australia, Spain, Germany, and the United Kingdom - its cigarettes experienced an additional 20 basis points of growth.
It is noteworthy that the next generation of products (NGP), including e-cigarettes and other categories, saw a revenue growth of nearly 20% in the first half of this fiscal year.
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The Imperial company is investing in alternative tobacco products and increasing prices in order to generate growth.
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