Imperial Brands in-line to hit first-half targets

Tobacco company Imperial Brands said it remained on target to hit first-half targets, with both revenues and earnings set to be up strongly at the reported level thanks to the weak pound.

As it previously guided, a £300m investment being made in 2017 into its brands will be biased to the first half, resulting in lower revenue and profit on a constant currency basis, with a stronger second half performance.

The FTSE 100 company said first half revenues were being driven primarily by "a deterioration in industry volumes following strong industry volumes last year, while price/mix is flat on last year, as previously guided".

"The early results of our investment programme are encouraging, with improved market share trends in many of our priority markets," Imperial said.

Imperial was reported by the Times last week to be in discussions with cash-and-carry group Palmer & Harvey over a potential investment.

The half year results to 31 March 2017 will be announced on 3 May 2017.