Tobacco giant Imperial Brands has increased its shareholder dividend after reporting a rise in profits for the financial year.
The Bristol-headquartered maker of Davidoff, West and Golden Virginia said "strong operational momentum" had delivered growth and enabled increased returns.
Net revenue from tobacco and next generation products rose 1.9% to £8.3bn in the year to September 30 2025, or 4.1% if currency swings are dismissed. Cigarette volumes were down 1.7%, but the company said this was offset by strong pricing.
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Group adjusted operating profit increased 4.6% to £3.99bn, with adjusted earnings per share up 9.1% to 315p.
The board proposed a final dividend of 40.08 pence per share which, together with first and second interim dividends for the 2025 financial year, represent an increase of 4.5% on the year previously.
Imperial also confirmed its £1.45bn share buyback scheme for 2026 had started.
"Our consistently strong operational and financial delivery provides a firm platform on which to build as we embark on the next phase of our strategy," said new chief executive Lukas Paravicini.
"Our performance in FY25 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next generation products."
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Mr Paravicini said Imperial would continue to invest in "consumer insights, innovation and marketing" and would continue to "make deliberate, focused choices" about the opportunities it pursued.
"While our approach is evolutionary, our ambition is bold - to deliver a step-change in our capabilities and fully unleash the potential of our people," he added.
"This transformation will enable us to fulfil our twin strategic priorities - sustainable value in combustibles and scale in NGP - and realise our purpose of forging a path to a healthier future for moments of relaxation and pleasure."
Imperial told investors on Tuesday (November 18) that expectations for the coming year were in line with the medium-term guidance.
It also forecast low-single-digit tobacco and double-digit next generation product net revenue growth for the new financial year. It added that pricing would continue to offset cigarette volume declines.
Adjusted operating profit is predicted to rise 3% to 5% on a constant currency basis, driven primarily by continued profit growth from the company's combustible tobacco business.
In line with previous years, performance will be weighted to the second half of the year because of the phasing of combustible pricing and investment, Imperial added.
The business expects to generate free cash flow of at least £2.2bn in the 2026 financial year.