Imperial Brands PLC on Wednesday said revenue and profit had dipped in the first half of its financial year, though progress in its non-cigarette lines had given the company confidence in its long-term prospects.

The London-based tobacco and nicotine product company, whose brands include Gauloises and L&B, reported £1.49 billion in operating profit for the six months ended March 31, down 2.6% from £1.53 billion a year prior.

Revenue for the half was down 2.3% to £15.06 billion from £15.41 billion.

Earnings per share fell 18% to 96.0 pence from 117.0p in the first half of the previous financial year.

Imperial raised its interim dividend 4.0% to 44.90p from 43.18p.

Imperial added that it achieved a ‘stable aggregate market share’ in its five priority markets in the half.

Revenue for ’next generation products’, Imperial’s line of vapour, heated and non-smoke alternatives, was up 17% on a constant currency basis.

As a result, the company said that it is ‘well set up to adapt to changing consumer preferences and regulatory requirements’.

Chief Executive Officer Stefan Bomhard celebrated the strong momentum achieved in next generation products, adding that this had increased the company’s confidence in delivering full-year results in line with its guidance.

Imperial expects to deliver low-single digit growth in Tobacco & NPG revenue at constant currencies, with mid-single digit constant currency growth in operating profit.

In its previous financial year, Imperial’s Tobacco & NGP revenue was £22.66 billion, while operating profit reached £3.40 billion.

Shares in Imperial Brands were up 3.7% at 1,948.50 each in London on Wednesday morning.

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