Imperial Brands (IMB) H1 2025 earnings summary

Executive summary

• CEO Stefan Bomhard announced his retirement, with CFO Lukas Paravicini set to succeed him in October; Murray McGowan will become CFO, and Stefan will remain on the board until year-end and available through May 2026.

• Delivered half-year results in line with guidance, with operational and financial performance supporting shareholder returns.

• Transformation initiatives have improved agility and resilience, positioning the company well despite macro volatility.

• Achieved aggregate market share gains (+6 bps) in five priority markets, with strong pricing offsetting volume declines; NGP net revenue up 15.4% year-over-year, with growth in all categories.

• Strategy focuses on sustainable value in combustibles, building scale in next-generation products (NGP), and a consumer-centric approach.

Financial highlights

• Tobacco & NGP net revenue up 3.2% year-over-year to £3,754m at constant currency; reported revenue declined 3.1% to £14,604m due to volume declines and adverse FX.

• NGP net revenue increased 15.4% year-over-year; adjusted operating profit up 1.8% to £1,652m at constant currency.

• Adjusted EPS up 6.0% to 123.9p, supported by share buybacks and strong cash conversion (99%).

• Free cash flow (12 months) at £2.4bn; adjusted net debt/EBITDA improved to 2.4x.

• Interim dividend per share up 78.5% to 80.16p, reflecting rephasing and underlying growth.

Outlook and guidance

• On track to deliver full-year guidance, with low single-digit tobacco & NGP net revenue growth and double-digit NGP net revenue growth expected.

• Adjusted operating profit expected to grow near the middle of the mid-single-digit range; high single-digit EPS growth anticipated for the full year, supported by profit growth and share buybacks.

• FX headwinds expected to impact net revenue (2.0-2.5%) and adjusted operating profit/EPS (3.5-4.5%).

• Medium-term guidance and capital allocation priorities remain unchanged, with a focus on sustainable growth and progressive dividends.

• Finance charge for FY25 expected at ~£420m; tax rate 23–24%; capex £300–350m; cash conversion 90–100%.