In good shape
This morning’s trading update from Imperial Brands confirms that the business is on track to meet expectations for the full year. The company’s growth brands continue to gain market share, resulting in a robust volume performance. Imperial Brands also announced it is stepping up its activity in next generation products (NGPs), with multiple launches lined up in the next few months.
Cash generation remains strong, and the company has reiterated its commitment to 10% dividend growth. Overall, the update is as expected and it suggests that the business is in far better shape than its share price and valuation would suggest.