Tue, 22nd May 2018
Shares in Imperial Brands jumped on Wednesday, as the company reported that it was continuing to make significant progress in it’s next generation products, although profits and revenues were on the decline.
The company, which is listed in the FTSE 100, said that its revenue for the half year leading up to the 31st March had fallen by 0.1 percent, and operating profits fell by 7.6 percent, however the company was expecting a stronger second half.
Alison Cooper, a chief executive for the company, said in a statement that the company was expecting stronger tobacco revenue performance in the second half. The company was also working on next generation products that would offer an alternative to traditional smoking. The company said that the new products offer considerable growth opportunities, and that they had significant ambition for the products to become a part of the company’s future revenue and growth.
Imperial is looking to simplify the business, and is looking at opportunities for divestments over the next one to two years. The hope to further simplify the business, and to enhance performance and release capital, paying down debt and delivering returns to shareholders over that time. The announcements helped Imperial Brands to gain 4.7 percent during the first part of the trading day on Wednesday, with optimism and positive sentiment for the company continuing as the day goes on. Traditional tobacco companies are facing difficulties, but the move towards novel nicotine products is a promising one for many.