# Imperial Brands releases trading update

By Derren Nathan — 2026-04-14

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “Imperial Brands’ tobacco volumes declined again in the first half, but that’s to be expected as more smokers kick the habit and non-combustible alternatives continue their expansion.

“Low single-digit reductions are on the manageable side.

“In the meantime, revenue has grown modestly, supported by robust pricing and a mid-to-high single-digit percentage rise in sales of Next Generation Products (NGPs).

“With full-year guidance intact, Imperial is setting out its stall as a strong defensive investment, and despite a note of caution, it has seen no material business impact from this year’s tumultuous geopolitical events.

“Imperial’s ability to sustain modest growth and impressive cash generation over the long term will depend on its rollout of NGPs, and here execution looks to be improving as it focuses on its strongest markets.

“The theme of doing less things, but better, extends to tobacco too, where the group concedes it’s lost some market share in its top markets while growing profit.

“That’s a preferable outcome to adding share while losing profit.

“The 5.6 per cent forward yield and ‘evergreen’ buyback looks to be on firm ground, but a re-rating in recent years also means Imperial must now compete with companies from less controversial industries for the attention of income investors.

“With some work left to do to hit full-year guidance some weakness in the shares was to be expected in a nervous market.”

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