Imperial Brands Adjusted Operating Profit Rises 0.6% in First Half

The Tip Desk · May 12, 2026 · 2 min read

The company reported a 1.8% increase in Tobacco and Next Generation Products net revenue on a constant currency basis.

Imperial Brands Plc, a tobacco and next generation products company, reported a 0.6% increase in group adjusted operating profit for the six months ended March 31, 2026, on a constant currency basis. Reported operating profit fell 36.5% to £925 million, which the company attributed to costs associated with 2030 Strategy activities and the Delaware settlement,.

Tobacco net revenue grew 1.5% at constant currency, as pricing of 3.0% more than offset a 1.5% decline in tobacco volumes,. The company said volume growth in the Africa, Asia, Middle East and Turkey and Southeast Europe (AAACE) region was offset by declines in the Americas and Europe. Tobacco adjusted operating profit rose 1.5%, driven by pricing and the impact of US and Australia tariffs.

Net revenue for Next Generation Products (NGP) rose 7.5% at constant currency. The company reported double-digit growth in Europe (15.3%) and AAACE (60.0%), though these gains were offset by declines in the US,. NGP adjusted losses increased by £3 million to £40 million. The company said it grew market share across all three NGP categories, noting strong growth in heated tobacco following the rollout of the Pulze 3.0 device,.

Adjusted earnings per share rose 5.3%, while reported earnings per share fell 38.1% to 59.9p,. The company completed a £809 million share buyback during the period and increased its interim dividend by 4.0% to 83.36 pence per share,. Adjusted net debt stood at £10.5 billion, with a 12-month net debt to EBITDA ratio of 2.4x.

Imperial Brands is on track to deliver £320 million of annual cost savings by 2030. The company has begun implementing a strategic partnership with Capgemini, which included the transfer of 386 roles in the first half,.

For the full year, the company expects group adjusted operating profit to grow between 3% and 5% on a constant currency basis. It expects double-digit NGP net revenue growth and low-single-digit tobacco net revenue growth. The company expects to generate free cash flow of at least £2.2 billion in FY26 after accounting for the first instalment of the Delaware settlement and 2030 Strategy costs.

Management noted that conflict in the Middle East has created a more uncertain macroeconomic environment, though the company said it has not seen a material impact to date. The company stated that prolonged conflict could eventually impact consumer demand, duty free, and input costs.