Imperial Brands (IMB) Trading Update summary

Trading performance and guidance

• Trading remains in line with guidance, supported by growth in both tobacco and next-generation products (NGP).

• Market share gains are expected in the US, Germany, and Australia, offsetting declines in Spain and the UK.

• Double-digit NGP net revenue growth is anticipated for another year.

• Group adjusted operating profit growth is expected to match last year's rate, with high single-digit adjusted EPS growth.

• Foreign exchange is expected to be a 2.0–2.5% headwind to net revenue and a 2.5–3.0% headwind to profit and EPS.

Capital allocation and shareholder returns

• Announced a £1.45 billion share buyback for FY26, to be completed by 28 October 2026.

• Combined dividends and buybacks are expected to return over £2.7 billion to shareholders in the coming year, about 11% of current market capitalization.

• Over the past five years, approximately £10 billion has been returned to shareholders.

• FY25 annual dividend increased by 4.5% to 160.32 pence per share, paid quarterly.

Strategic and operational updates

• FY25 performance provides a strong foundation for the next phase of the 2030 strategy.

• Focus remains on building a simpler, more efficient organization, including a consultation on the future of the Langenhagen, Germany factory.

• Adjusted operating cash conversion remains strong, with leverage expected at the lower end of the 2.0–2.5x net debt/EBITDA range.