Imperial Brands PLC (LON:IMB) said it is on track to deliver full-year results in line with expectations, helped by increased sales of alternative smoking products.
In a pre-close season trading update ahead of a Capital Markets Event on Tuesday focused on its Next Generation Products (NGP), the FTSE 100-listed firm said its full-year constant currency revenue and earnings should be in line with the guidance range.
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The firm highlighted strong growth in sales of its myblu NGP product and said revenues have been gaining momentum this year, resulting in an annualised exit run-rate of around £0.3bn.
It also announced today plans to launch, Pulze, a heated tobacco product early in the next calendar year.
The maker of Gauloise, Kool and Winston cigarettes added that its traditional tobacco business was also delivering a much stronger second half and that volumes would outperform the industry, although second half volumes were slightly weaker than the first.
Imperial Brands said its ongoing cost optimisation savings will be slightly above its original expectations of £100mln, while other gains included in adjusted operating profit will be within the expected range of £50mlm to £100mln.
The group also said its divestment programme, announced with its interim results, is on track and progressing well.
The firm said it will report its preliminary results for the year ended 30 September 2018 on 6 November.
In late afternoon trading, Imperial Brands’ shares were 0.7% higher at 2,656.5p.
In a note to clients, Liberum Capital reiterated its ‘buy’ rating and 3,100p price target on the stock.
Liberum's analysts said: “Imperial is our top pick in tobacco and currently trades on trough multiples as the group nears the end of its multi-year transformation into a focused brand builder.”
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