Imperial Brands PLC (LON:IMB), formerly Imperial Tobacco (LON:IMT), saw shares drag lower midweek as it unveiled a fall in first half profit, but higher sales, helped by e-cigarettes.
The FTSE100 constituent reported revenue of £3.4bn across its cigarette, cigar and e-cigarette products in the six months to March 31, compared to £2.95bn in the same period last year.
But the net profit dropped to £290mln versus £853 million in the same period last year, not least to due to a new strategy which includes a cost-cutting programme to save £55mln this year.
Imperial’s specialist brands, including premium cigars, blu e-cigarettes, contributed to the sales uplift and net revenue here was up 58.6% and it hopes to exploit the growing trend of -e-cigarettes, or vaping, via its Amsterdam-based company Fotem Ventures, which has the blu brand.
"blu holds the number two position in the US and UK and a growing presence in Italy and France. We are investing to support growth, including the roll-out of the latest generation product, blu PLUS+ and a new marketing campaign," the group said.
"Fontem also continues to develop a range of patented technologies while successfully licensing its first generation technology to a number of major e-vapour businesses."
The group hopes this investment will help mitigate slipping sales in the UK, where smoking rates have halved since 1974.
The firm dropped the 'Tobacco' from its name in February in an attempt to distance itself from purely tobacco products.
Shares eased 0.9% to 3,705.5p.