Imperial Brands (IMB) H2 2025 earnings summary

Executive summary

• Delivered strong operational and financial performance, building on a consistent track record of growth and transformation.

• CEO and CFO transitions marked by continued strategic focus and operational delivery.

• Maintained and grew market share in priority markets, with notable gains in the US and Germany, and continued investment in brand and salesforce capabilities.

• Advanced transformation initiatives, including efficiency improvements, technology investments, and manufacturing footprint rationalization.

• Strategic ambition reconfirmed, emphasizing a challenger approach and consumer-centric transformation.

Financial highlights

• Tobacco & NGP net revenue increased by 4.1% year-over-year to £8,490m at constant currency.

• Adjusted operating profit rose 4.6% to £3,988m at constant currency, in line with guidance.

• Adjusted EPS grew 6.1% to 315.0p, with high-single-digit growth supported by profit growth and share count reduction.

• Free cash flow reached £2.7bn, with 97% cash conversion.

• Dividend per share increased by 4.5% to 160.3p; £1.45bn buyback committed for FY26.

Outlook and guidance

• FY26 share buyback increased to £1.45bn, with total capital returns expected to exceed £2.7bn.

• Adjusted operating profit expected to grow 3%-5% in the coming year.

• Free cash flow guidance set at a minimum of £2.2bn for next year.

• High single-digit EPS growth anticipated, supported by ongoing share buybacks.

• Finance charge for FY26 projected at £460m, tax rate at 24%, and capex between £300m-£350m.