By Henry Saker-Clark

Copyright independent

Golden Virginia maker Imperial Brands has said it is “on track” after revenues were buoyed by higher pricing and strong demand for new products, including vapes and heated tobacco.

Shares in the FTSE 100 firm moved higher on Tuesday as a result.

The company, which owns the Blu e-cigarette brand, also launched a £1.45 billion share buyback to hand more cash back to investors.

Imperial reported that it is “trading in line with guidance” for the current financial year, in its first update under the leadership of new chief executive Lukas Paravicini.

The company was boosted by growing market share in the US, Germany and Australia, broadly offsetting declines in the UK and Spain.

It is on track to deliver low single-digit growth in tobacco revenues for the current year, boosted by “strong pricing” for traditional cigarettes.

Higher pricing has more than offset weaker volumes, the company said.

Imperial added that it is set for another year of double-digit growth in its next-generation products business, which includes vapes, heated tobacco and oral nicotine products.

On Tuesday, Imperial also confirmed that it is considering a potential sale of its factory in Langenhagen, in Germany, or closing the site.

AJ Bell investment director Russ Mould said: “Shares in Imperial Brands stand near seven-year highs after the company’s full-year trading update, which offers the tantalising prospect of an increased dividend and a further hefty share buyback in the company’s next financial year.

“This brings to an end the five-year turnaround programme launched by Stefan Bomhard when he became chief executive and enables his successor, Lukas Paravicini, and new chief financial officer Murray McGowan, to start their tenures on the front foot.”

Shares in the business were 2.6% higher.