By Anthony O. Goriainoff
Imperial Brands said it expects to report higher adjusted operating profit for the first half of fiscal 2026, helped by strong tobacco pricing and revenue growth from its vaping, heated tobacco and oral nicotine products.
The London-listed tobacco company, which houses brands such as Davidoff, Gauloises and JPS, said it expects this growth to accelerate in the second half of the year ending Sept. 30.
Imperial Brands said its first-half performance was strong in Europe, Africa, Asia, offsetting weaker results in the U.S., Australia and at distribution company Logista, in which it has a majority stake.
In the first half of fiscal 2025, the company posted adjusted operating profit of 1.65 billion pounds ($2.23 billion).
The company expects to report low-single-digit percentage net revenue growth in both the tobacco segment and in next-generation products--the category housing vape, heated tobacco and oral nicotine--in the first half of the current fiscal year.
Imperial Brands reiterated its guidance for the fiscal year. Although it hasn't yet seen any material business effects stemming from the conflict in the Middle East, the potential future effect on the second half remained uncertain, it said.
For fiscal 2026, the company expects adjusted operating profit to grow in the 3% to 5% range from the 3.99 billion pounds it reported the year before. Net revenue growth is expected to be in the low single digits in tobacco and in double digits in next-generation products, with its performance second-half weighted.
Write to Anthony O. Goriainoff at anthony.orunagoriainoff@dowjones.com
(END) Dow Jones Newswires
04-14-26 0315ET
