Imperial Brands (IMB) CMD 2025 summary

Strategic direction and future plans

• The 2030 strategy focuses on consumer centricity, brand differentiation, and agile investment in people, technology, and data to drive transformation and unlock efficiencies over the next five years.

• Prioritizes investment in five key markets (U.S., Germany, U.K., Spain, Australia) and targeted next-generation product (NGP) markets, leveraging consumer insights and a focused playbook.

• Maintains a challenger mindset, leveraging data-led decision making and a high-performance, accountable culture to drive sustainable value and growth.

• Purpose and vision remain unchanged: forging a path to a healthier future and building a strong challenger business powered by responsibility, focus, and choice.

• Board has rigorously reviewed all options for value creation, confirming strong foundations for the next strategic phase.

Financial guidance and capital returns

• Medium-term guidance targets 3%-5% annual growth in group-adjusted operating profit, low single-digit tobacco net revenue growth, double-digit NGP net revenue growth, high single-digit EPS growth, and £2.2bn–£3.0bn annual free cash flow.

• FY25 outlook: low single-digit net revenue growth in tobacco and NGP, adjusted operating profit growth near mid-single-digit range, and high single-digit EPS growth.

• Ongoing capital returns include a progressive dividend policy, annual share buybacks through 2030, and total capital returns of £10bn over five years.

• Capital allocation priorities: invest in organic growth, maintain investment-grade credit rating and leverage at 2-2.5x net debt/EBITDA, progressive dividend, and surplus capital returns via buybacks.

• No large M&A is planned; focus remains on bolt-on acquisitions to enhance NGP capabilities.

Business developments and operational focus

• Consumer insights and brand-building frameworks are central, segmenting consumers into typologies and focusing on differentiated brand propositions in both combustibles and NGP.

• Innovation is driven by co-creation with consumers, rapid product development, and leveraging science for harm reduction, especially in NGP categories (vapor, heated tobacco, modern oral nicotine).

• Regional strategies emphasize tailored approaches: U.S. leverages a diverse brand portfolio and sales force expansion; Europe focuses on Germany, U.K., and Spain with targeted brand and sales initiatives; Australia and emerging markets are managed through focused investment and cluster management.

• NGP growth is prioritized in established markets, with scale-building in U.S. modern oral, European vapor, and heated tobacco, aiming for profitability and margin improvement as scale increases.

• Efficiency and data-led transformation: global business services, ERP rollout, and £320m annualized savings targeted by 2030 to underpin profit and cash growth.