Imperial Brands PLC on Tuesday said price rises helped offset reduced volumes in its tobacco business, leaving full-year revenue little changed.

The Bristol, England-based tobacco products manufacturer said pretax profit fell 2.6% to £3.03 billion in the 12 months to September 30 from £3.11 billion a year prior.

Adjusted operating profit rose 0.6% to £3.91 billion from £3.89 billion, slightly below company-compiled consensus of £3.94 billion.

Earnings per share climbed 19% to 300.7 pence from 252.4p.

Revenue slipped 0.2% to £32.41 billion from £32.48 billion.

Imperial Brands, which owns Golden Virginia and Rizla, said tobacco adjusted operating profit grew 2.5%, reflecting strong pricing while absorbing cost inflation.

Next Generation Products adjusted losses reduced by 43% to £79 million, Imperial Brands, reflecting improved gross margin while supporting continued investment in new product launches.

In tobacco, Imperial Brands reported increased market share of five basis points across its five priority combustible markets, together with strong pricing in all markets.

Gains in the US, Germany, Spain and Australia more than offset declines in the UK, the company noted.

Strong tobacco pricing was seen across all key markets, with a price mix of 7.8%. This helped offset a 4.0% drop in tobacco volumes.

Imperial Brands said the NGP business saw revenue growth in all three regions and all three categories, with market share growth in all categories.

NGP revenue now represents around 8% of tobacco and NGP net revenue in Europe, including Central & Eastern Europe, the firm said.

The annual dividend was increased 4.5% to 153.42p per share from 148.82p a year ago. The firm plans to move to four equal quarterly dividend payments for the current financial year.

The company said it remained on track to deliver five-year capital returns of around £10 billion, representing 67% of market capitalisation in January 2021, when the strategy was launched. An ongoing £1.25 billion buyback is underway, the firm added.

Chief Executive Stefan Bomhard said: ‘We are now working on our strategy for the next five-year period through to 2030, which will build on the strong foundations established under the current strategy.’

Further details will be provided at a capital markets day in London on March 26 next year, he added.

Looking ahead, Imperial Brands expects to deliver tobacco and NGP net revenue growth at low single-digit constant currency and to grow adjusted operating profit close to the middle of the mid-single-digit range at constant currency.

This will be driven by continued profit growth from the combustible tobacco business and a further reduction in operating losses in the NGP portfolio.

‘Given the strong momentum in our NGP business, we will continue to invest to drive another year of double-digit constant currency net revenue growth, while balancing our objective to build a sustainable and profitable business,’ Bomhard said.

In line with previous years, performance will be weighted to the second half of the year, driven by the phasing of combustible pricing and investment. As a result, first-half adjusted operating profit is expected to grow at low single digits at constant currency.

Imperial expects to deliver ‘at least’ high-single-digit EPS growth at the full year at constant currency supported by the ongoing share buyback and partly offset by higher adjusted finance and tax costs. At current rates, foreign exchange translation is expected to be a headwind of 1% to 2% to net revenue, adjusted operating profit and EPS.

Shares in Imperial Brands were up 2.0% to 2,448.00 pence each. The wider FTSE 100 index was up just 0.1%.

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