Imperial Brands has said that it is on track to deliver its full-year guidance for the current financial year, following growth in both its tobacco and next generation products (NGP) divisions.

The FTSE 100 firm stated in its pre-close trading update for the year to 30 September that it expects to deliver low single-digit tobacco net revenue growth, while its NGP net revenue is set to jump by 12% to 14%.

Imperial said that its revenue growth has been underpinned by "strong combustible pricing" and is set to record market share gains in the US, Germany and Australia, which will offset declines in Spain and the UK.

Furthermore, the firm expects to deliver high single-digit earnings per share growth in the year to 30 September, supported by a growth in its operating profit.

In its trading update, Imperial also announced the launch of a new £1.45bn share buyback scheme, which will take place in the 2026 financial year.

It added that it is now coming to the end of its five-year 2021 strategy plan, and its current guidance is set to provide a "strong foundation" as it looks to the next phase of its strategy to 2030.

Following the latest announcement, shares in Imperial increased by 2.8%.

Head of equity research at Hargreaves Lansdown, Derren Nathan, stated: "The group’s been charging smokers more to satisfy their habit, in order to offset volume declines. And demand for NGPs such as vapes is proving to be more robust, with revenue expected to increase 12-14%.

"However, given the relatively small contribution to the mix, a key question for incoming CEO Lukas Paravicini, is how to accelerate growth in this category. Imperial’s certainly got the financial firepower to make the required investments.

"But, by announcing a further £1.45bn instalment in its ‘evergreen’ share buyback programme, it’s setting high expectations for generous shareholder payouts to continue. The shares should respond positively today but the new boss will need to show strong leadership if he’s to assure a bright future in this rapidly evolving and highly regulated industry."

Imperial is set to announce its full-year results on 18 November.

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