LONDON (ShareCast) - (Sharecast News) - Imperial Brands said on Wednesday that it was on track to meet full-year expectations as the business continues to perform well.

Group net revenue is expected to grow by around 1% on an organic, constant currency basis, driven by continued strong pricing in tobacco. Meanwhile, adjusted organic operating profit is set to be in line with company guidance of low to mid-single digit constant currency growth. This reflects "significantly" reduced losses in Next Generation Products (NGPs) and increased profit in distribution.

Imperial said the tobacco business has performed well, although adjusted operating profit will be slightly lower than last year, as previously guided, due to planned increased investment to support its strategic plan, and lower stock revenue/profit in Australia and US state litigation settlement costs.

In the combustibles segment, greater focus on the company's five priority markets is beginning to stabilise the long-term aggregate market share performances.

Overall tobacco volumes are in line with expectations and total group cigarette market share is expected to grow by around 20 basis points, it said.

"The net effect of the Covid-19 travel restrictions and changes in consumer buying patterns has been a small mix benefit, although this is beginning to reduce as restrictions are lifted and is likely to unwind further in FY22," the company said.

As far NGPs are concerned, Imperial said second-half revenue is expected to be at a similar level to the first half, reflecting the impact of market exits as it focuses on the categories and markets "with the best potential for sustainable growth".

Chief Executive Stefan Bomhard said: "We have made good progress in implementing our strategy through a sharper management focus, greater investment behind our priority combustible tobacco markets and new market trials in heated tobacco and vapour.

"We are building a high-performance culture with the introduction of new more consumer-focused ways of working, and have made a significant number of new hires to enhance our capabilities in key areas. I am pleased to report the business continues to perform well and we remain on track to deliver our full-year results in line with expectations."

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