Imperial Brands PLC (LSE:IMB) said it remains on course to meet its full-year targets, with steady growth across both traditional tobacco and newer nicotine products, and announced a fresh £1.45 billion share buyback for the 2026 financial year.
The maker of Davidoff and Lambert & Butler cigarettes said trading this year had been in line with expectations, supported by “strong combustible pricing”.
It also pointed to another year of double-digit growth in its next-generation product business, which includes vapes and heated tobacco.
The company expects to make market share gains in the United States, Germany and Australia, which will broadly offset declines in Spain and the UK.
Group adjusted operating profit is forecast to rise at a similar pace to last year, while earnings per share are expected to show high single-digit growth, helped by the ongoing share repurchase scheme.
Foreign exchange rates are expected to provide a modest drag, reducing reported earnings by around 2.5% to 3%. The company said cash generation remains strong and that debt levels should stay at the lower end of its target range of two to two-and-a-half times earnings.
Imperial is nearing the end of a five-year turnaround plan launched in 2021 to make the group leaner and more consumer-focused. It said the performance this year “provides a strong foundation” as it moves into the next stage of its strategy to 2030.
As part of that plan, the group is reviewing the future of its cigarette factory in Langenhagen, Germany, which could be sold or closed. Costs linked to the process are already included in existing forecasts.
Alongside the new buyback, Imperial has already lifted its annual dividend by 4.5% to 160.32 pence a share, paid quarterly.
The company expects total shareholder returns, including dividends and buybacks, to exceed £2.7 billion in the coming year, equivalent to about 11% of its current market value.