Imperial Brands reported a revenue increase to £14.72 billion ($20.04 billion) in its first fiscal half, driven by strong performance in next-generation products. The London-listed tobacco company saw revenue rise slightly from £14.60 billion in the same period last year, as vapes and other modern alternatives fueled growth across its portfolio that includes Davidoff, Gauloises and JPS.

Next-generation product net revenue grew 7.5%, with double-digit increases in multiple markets compensating for a sales decline in the United States. This shift toward alternative tobacco products reflects changing consumer preferences and regulatory pressures facing traditional cigarette manufacturers worldwide, as companies diversify beyond combustible tobacco.

Despite revenue growth, reported pretax profit fell to £791 million from £1.30 billion in the prior year. The profit decline suggests rising costs and competitive pressures in the evolving tobacco market, highlighting the challenges Imperial Brands faces in transitioning its business while maintaining profitability.