Tobacco giant Imperial Brands has announced a £1.45bn share buyback programme for the 2026 financial year and says it is on track to meet its annual targets.
In a trading update to the stock market on Tuesday (October 7), the Bristol-headquartered maker of Golden Virginia reported growth in tobacco and next-generation products, such as e-cigarettes.
The company said strong pricing and gains in the US, Germany and Australia would broadly offset declines in Spain and the º£½ÇÊÓƵ.
Group adjusted operating profit growth is expected to be a similar rate to last year, in line with previous guidance.
"We are pleased to report another year of operational and financial delivery as we continue our long-term transformation to become a stronger challenger business, which is more consumer-centric, focused and agile," Imperial Brands said in a statement.
"At the same time, we have delivered strong pricing, more than offsetting volume declines, which have eased across the majority of our footprint, although we have seen some volatility in certain markets."
The FY25 annual dividend increased by 4.5% to 160.32 pence per share, which will be paid in four equal quarterly payments.
Taking dividends and buyback together, Imperial said it expected capital returns to shareholders to exceed £2.7bn in the coming fiscal year, representing around 11% of the current market capitalisation.
The company's annual results for the year ended September 30, 2025, will be announced on November 18.
The trading update comes just days after Imperial announced plans to cease production at its German factory, putting hundreds of jobs at risk.
Staff at the Langenhagen plant, which is operated by its German subsidiary Reemtsma, were told of the news last week and are now in consultation with the business.
The company's new chief executive, Lukas Paravicini, also took over on October 1.
The former Nestle boss, who was Imperial's financial chief for four years prior to his appointment, has succeeded Stefan Bomhard, who announced his retirement earlier this year.
