7th Oct 2025 08:34
(Alliance News) - Imperial Brands PLC on Tuesday announced a further GBP1.45 billion share buyback and said it was on track to deliver full-year guidance.
In response, shares in the Bristol, England-based tobacco products manufacturer which owns Golden Virginia and Rizla rose 2.9% to 3,091.00 pence each in London on Tuesday.
Imperial Brands said the GBP1.45 billion share buyback, for financial 2026, will be completed by October 28, 2026.
The company said taking dividends and buyback together, it expects capital returns to shareholders will exceed GBP2.7 billion in the coming financial year, representing around 11% of its current market capitalisation.
"We remain committed to returning surplus capital to shareholders via an ongoing 'evergreen' share buyback over the next five years to FY30, with the board determining the quantum of future buybacks on an annual basis," the company said in a statement.
For the financial year to September, Imperial Tobacco said it is on track to deliver low single-digit tobacco and next generation products net revenue growth, with group adjusted operating profit growth at a similar rate to last year, in line with guidance.
In the previous financial year, Imperial Brands reported net revenue of GBP32.41 billion and adjusted operating profit growth of 0.6%, or 4.6% at constant currency.
NGP losses are expected to be broadly flat from GBP79 million year on year.
Revenue growth has been underpinned by strong combustible pricing and further double-digit growth in the NGP business, the firm said.
Market share gains in the US, Germany and Australia, are expected to broadly offset declines in Spain and the UK.
Imperial Brands said it has delivered strong share gains across its five priority markets, and strong pricing, more than offsetting volume declines.
NGP net revenue growth for the full year, at constant currency, is expected to be around the mid-point of a 12% to 14% range, it said.
Adjusted earnings per share is expected to grow by high single-digit percentage at constant currency for the full year from 297.0 pence the year prior.
At current exchange rates, foreign exchange is expected to be an around 2.0% to 2.5% headwind to net revenue and 2.5% to 3.0% headwind to group adjusted operating profit and earnings per share.
Imperial Brands said its adjusted operating cash conversion "remains strong", and it expects full-year leverage to continue to be at the lower end of our 2.0 times to 2.5 times range for adjusted net debt to earnings before interest, tax, depreciation and amortisation.
In addition, the company said it was reviewing the future for its factory in Langenhagen, Germany, which will result in sale or closure.
Annual results for the financial year ended September 30 will be announced on November 18.
By Jeremy Cutler, Alliance News reporter
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