REG - Imperial Brands PLC - Trading update

Imperial BrandsAnnouncement

Tue 07:00

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RNS Number : 2784C  Imperial Brands PLC  07 October 2025

IMPERIAL BRANDS PLC

 

Legal Entity Identifier (LEI) No. 549300DFVPOB67JL3A42

 

7 October 2025

 

Imperial Brands on track to deliver full-year guidance for FY25 and announces
further £1.45bn share buyback for FY26

 

·      Trading in line with guidance, underpinned by growth in both
tobacco and NGP

·      Expect market share gains in the US, Germany and Australia, to
broadly offset declines in Spain and UK

·      Another year of double-digit NGP net revenue growth

·      Group adjusted operating profit growth expected to be a similar
rate to last year, in line with guidance

·    High-single-digit adjusted EPS growth in line with expectations,
driven by adjusted operating profit growth and share count reduction from the
ongoing buyback

·    In line with our capital allocation framework, FY26 share buyback of
£1.45bn announced, reflecting continued confidence in operational execution
and strategic delivery

Pre-close trading update FY25

We are pleased to report another year of operational and financial delivery as
we continue our long-term transformation to become a stronger challenger
business, which is more consumer-centric, focused and agile. This is the fifth
and final year of our 2021 strategy and our FY25 performance provides a strong
foundation as we look ahead with confidence to the next phase of our strategy
to 2030.

At constant currency, we are on track to deliver low single-digit tobacco and
NGP net revenue growth for FY25, with Group adjusted operating profit growth
at a similar rate to last year, in line with guidance. NGP losses are expected
to be broadly flat year on year.

Constant currency tobacco and NGP net revenue growth is underpinned by strong
combustible pricing and further double-digit growth in our NGP business. We
expect market share gains in the US, Germany and Australia, to broadly offset
declines in Spain and the UK. Over the past five years we have delivered
strong share gains across our five priority markets.

At the same time, we have delivered strong pricing, more than offsetting
volume declines, which have eased across the majority of our footprint,
although we have seen some volatility in certain markets. NGP net revenue
growth for the full year, at constant currency, is expected to be around the
mid-point of a 12-14% range, as we build scale across our existing footprint.

We expect to deliver high single-digit constant currency adjusted earnings per
share growth for the full year. This is supported by the growth in adjusted
operating profit and the ongoing share buyback programme, partly offset by
higher adjusted finance and tax costs as well as increased minority interests,
given strong growth in some of our African markets.

At current exchange rates, foreign exchange translation is expected to be a c.
2.0 to 2.5% headwind to net revenue and c. 2.5 to 3.0% headwind to Group
adjusted operating profit and earnings per share. The average number of shares
for the year was 824.8 million shares.

Our adjusted operating cash conversion remains strong, and we expect our
full-year leverage to continue to be at the lower end of our 2.0 to 2.5 range
for adjusted net debt to EBITDA.

 

Progress on 2030 strategy

As part of our 2030 strategy, alongside driving sustainable value in
combustibles and building scale in NGP, we are committed to building a
simpler, more efficient organisation. In line with this ambition, we have
recently started a consultation regarding the future of our factory in
Langenhagen, Germany. The outcome of this process will be either a sale of the
site to a third party or a closure. Costs expected in relation to this process
are within the guidance given in March, and we will provide further details in
due course.

 

Clear capital allocation framework supporting shareholder returns

As previously announced, the FY25 annual dividend increased by 4.5% to 160.32
pence per share, now paid in four equal quarterly payments.

 

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.
Consistent with our capital allocation framework, today we are announcing a
£1.45 billion share buyback for FY26, which we expect to complete no later
than 28 October 2026.

 

Our progressive dividend policy, together with our ongoing share buyback
programme, will continue to deliver strong shareholder returns. Taking
dividends and buyback together, we expect our capital returns to shareholders
will exceed £2.7 billion in the coming fiscal year, representing around 11%
of our current market capitalisation. Over the past five years from FY21 to
FY25, we have delivered a cumulative c. £10 billion of capital returns to
shareholders.

 

Our Annual Results for the year ended 30 September 2025 will be announced on
18 November 2025.

 

 

ENDS

 

Notes:

The Group uses 'adjusted' (non-GAAP) measures as we believe they provide a
better comparison between reporting periods. The definition of our adjusted
measures is unchanged from our full-year results. We also use the term
'constant currency', which removes the effect of exchange rate movements on
the translation of the results of our overseas operations.

 

 Investor Contacts                     Media Contacts
 John Crosse      +44 (0)7484 967 842  Jonathan Oliver  +44 (0)7740 096 018
 Jennifer Ramsey  +44 (0)7974 615 739  Simon Evans      +44 (0)7967 467 684
 Henry Dodd       +44 (0)7941 648 421

 

Cautionary Statement

Certain statements in this announcement constitute or may constitute
forward-looking statements. Any statement in this announcement that is not a
statement of historical fact including, without limitation, those regarding
the Company's future expectations, operations, financial performance,
financial condition and business is or may be a forward-looking statement.
Such forward-looking statements are subject to risks and uncertainties that
may cause actual results to differ materially from those projected or implied
in any forward-looking statement. These risks and uncertainties include, among
other factors, changing economic, financial, business or other market
conditions. These and other factors could adversely affect the outcome and
financial effects of the plans and events described in this announcement. As a
result, you are cautioned not to place any reliance on such forward-looking
statements. The forward-looking statements reflect knowledge and information
available at the date of this announcement and the Company undertakes no
obligation to update its view of such risks and uncertainties or to update the
forward-looking statements contained herein. Nothing in this announcement
should be construed as a profit forecast or profit estimate and no statement
in this announcement should be interpreted to mean that the future earnings
per share of the Company for current or future financial years will
necessarily match or exceed the historical or published earnings per share of
the Company. This announcement has been prepared for, and only for the members
of the Company, as a body, and no other persons. The Company, its Directors,
employees, agents or advisers do not accept or assume responsibility to any
other person to whom this announcement is shown or into whose hands it may
come and any such responsibility or liability is expressly disclaimed.

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