Imperial Brands (IMB) CMD 2025 summary

Strategic vision and 2030 ambitions

• The 2030 strategy focuses on consumer centricity, sustainable value in combustibles, scaling next generation products (NGP), and differentiated, consumer-centric brand building.

• Plans include disciplined capital allocation with an evergreen share buyback program, progressive dividends, and maintaining a strong balance sheet through 2030.

• Investment in people, technology, and data aims to create an agile, integrated, and high-performance organization, leveraging global scale and fostering a data-driven culture.

• The board has rigorously reviewed value creation options, confirming strong foundations for the next strategic phase and a commitment to a healthier future.

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

Financial guidance and capital returns

• Medium-term guidance targets low single-digit net revenue growth in combustibles, double-digit NGP net revenue growth, 3–5% annual operating profit growth, and high single-digit EPS growth.

• Free cash flow is projected at £2.2bn–£3.0bn annually, with higher levels expected as restructuring costs phase out.

• Capital allocation priorities: invest in organic growth, maintain investment-grade credit rating and leverage at 2–2.5x net debt/EBITDA, progressive dividends, and annual share buybacks through FY30.

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

• By 2030, aims to have delivered eight consecutive years of share repurchases and total capital returns of £10bn over five years.

Operational execution and business developments

• Focused investment in five priority markets (US, Germany, UK, Spain, Australia), which contribute about 70% of operating profit, with disciplined portfolio management and innovation driving share and value.

• NGP business is being scaled in targeted markets with a multi-category approach (vapour, heated tobacco, modern oral), leveraging consumer insights and rapid innovation cycles.

• Operational improvements include expanded sales forces, enhanced data-driven decision-making, and new product launches tailored to local consumer needs.

• Efficiency and data-led transformation through global business services, ERP rollout, and £320m annualized savings targeted by 2030, with most reinvested in growth.

• Organizational transformation includes a unified ERP rollout, shared service models, and a refreshed leadership team, with 74% employee engagement and 75% of top 500 leaders new or in new roles in the past five years.