14th May 2025 09:38
(Alliance News) - Imperial Brands PLC on Wednesday said Chief Executive Stefan Bomhard will retire this year as it reported a drop in half-year sales.
The Bristol, England-based tobacco products manufacturer said Bomhard will be succeeded as CEO by Lukas Paravicini, currently chief financial officer, on October 1.
Bonhard, who has been CEO for five years, will continue to serve on the board until the end of the year, and be available until May 2026 to support Paravicini with the transition. Murray McGowan, currently Imperial Brands' chief strategy and development officer, will become CFO.
Bomhard said: "With the team now preparing to implement our 2030 strategy, it feels like an appropriate time to hand on the baton to Lukas and Murray. In the coming months, I look forward to supporting them as they transition into their new roles."
The news came as Imperial Brands reported operating profit fell 2.5% to GBP1.46 billion in the six months to March 31 from GBP1.49 billion a year prior.
On an adjusted basis, operating profit slipped 1.0% to GBP1.65 billion from GBP1.67 billion, but rose 1.8% at constant currency.
Revenue fell 3.1% to GBP14.60 billion from GBP15.06 billion but earnings per share improved 0.7% to 96.7 pence from 96.0p.
The half-year dividend was increased by 79% to 80.16p from 44.90p a year ago.
In response, shares in Imperial Brands were down 6.3% at 2,708.00p each in London on Wednesday morning.
Imperial Tobacco owns tobacco brands such as Davidoff, West, Golden Virginia, Drum and Rizla. Its alternative nicotine products include the blu brand of electronic cigarettes.
Tobacco net revenue rose 2.7%, the firm said, with price rises of 5.9% offsetting volume declines of 3.2%.
Next Generation Products revenue jumped 15% as strong growth in the US and Europe more than offset declines in Africa, Asia, Australasia and Central & Eastern Europe.
The decline in group revenue reflected volume declines in high excise markets and adverse foreign exchange, Imperial explained.
Tobacco adjusted operating profit increased 1.5%, driven by strong pricing offsetting volume declines and increased investment, while NGP adjusted losses reduced by 14%.
Looking ahead, Imperial Brands said it is "on track to meet the guidance and expectations for the full year despite a more uncertain global economic environment".
At constant currency, the firm expects to deliver low-single digit growth tobacco and NGP net revenue and to grow group adjusted operating profit close to the middle of a mid-single-digit range.
Strong tobacco pricing in the first half of the year and slightly lower NGP losses will support a stronger second half delivery, Imperial Brands added.
In NGP, the firm plans continued investment to drive another year of double-digit constant currency net revenue growth.
In the year that ended September 30, 2024, Imperial Brands reported revenue of GBP32.41 billion and adjusted operating profit of GBP3.91 billion.
By Jeremy Cutler, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.
Related Shares:
Imperial Brands