Imperial Brands is on track to meet its full-year goals. The expectation is bolstered by strong sales of e-cigarettes and heated tobacco in Europe, the company said on Tuesday, boosting its shares to a more than two-year high.
Investors seem “relieved that the firm is on track to hit its full year guidance figures, as it proceeds in its five year strategy to shift to tobacco alternatives,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told Reuters.
After years of slow growth and market share losses, Imperial CEO Stefan Bomhard laid out a turnaround plan in 2021 focused on its five top markets and expanding next-generation products (NGP) deemed less harmful to health. Together, the United States, Britain, Germany, Spain and Australia account for over 70 percent of Imperial’s revenue.
Sales of Imperial’s next generation brands, which include Pulze heated tobacco and blu e-cigarettes, were up 8.7 percent to 101 million pounds ($126 million), driven by demand in Europe. In November, the company reported a more than 50% reduction in losses in the business.