Imperial Brands (LSE:IMB) has confirmed that it remains on track to meet its financial guidance for the year ending 2026, supported by tobacco pricing, market share gains and increased sales of next-generation nicotine products.
The tobacco and nicotine group reported a sixth consecutive year of growth in tobacco net revenue, alongside double-digit sales growth in its next-generation products portfolio, which includes vaping, heated tobacco and modern oral nicotine products.
Trading in the company’s principal markets, including the United States and Germany, contributed to its performance, with pricing adjustments and market share developments supporting tobacco revenue.
Imperial expects full-year adjusted operating profit growth to remain within its previously announced range of 3% to 5%. Adjusted earnings per share are forecast to increase by a high single-digit percentage, while free cash flow is expected to exceed £2.2 billion.
The company said cash conversion and modest favourable foreign exchange movements have contributed to its financial performance during the period.
Alongside its trading update, Imperial confirmed the completion of its £1.45 billion share repurchase programme for 2026 and announced plans for a further £1.5 billion buyback during the 2027 financial year.
According to the group, approximately £13 billion has been returned to shareholders over the past six years through its capital distribution activities. During that period, the number of shares in issue has declined by more than 20%.
Imperial said its leverage remains at the lower end of its target range, providing capacity to continue its planned shareholder distributions and operational investment.
The company is also implementing a business transformation programme targeting annual savings of at least £320 million by 2030. The initiative includes a planned £100 million reduction in overhead costs.
The programme focuses on changes to the group’s operating structure, use of customer data and internal processes, with the stated objective of reducing costs and improving operational efficiency.
Imperial continues to develop its next-generation products business alongside its established tobacco operations, with activities spanning vaping devices, heated tobacco products and oral nicotine alternatives.
The company is pursuing brand development, product innovation and selected acquisitions across its markets, including the United States and Germany.
Imperial Brands is a London-listed multinational tobacco and nicotine company with operations across combustible tobacco and next-generation product categories. Its portfolio includes cigarettes, vaping products, heated tobacco systems and modern oral nicotine products.
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