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Imperial Brands PLC on Tuesday reported a steady full-year performance and said it expects trading in the new year in line with its medium-term outlook, as demand for smoking alternatives helping its bottom line. The tobacco company posted a 3.3% rise in pretax profit to £3.13 billion for the year to September 30, up from £3.03 billion a year earlier. Revenue dipped 0.7% to £32.17 billion from £32.41 billion, reflecting lower tobacco volumes in ‘high-excise’ markets, partly offset by growth in next-generation products. Diluted earnings per share fell to 249.3 pence from 299.0p, while profit attributable to shareholders declined to £2.07 billion, from £2.61 billion. Imperial proposed a final dividend of 40.08p per share, taking the full-year payout to 160.32p, up 4.5% year-on-year from 153.42p. The group last month completed its £1.25 billion buyback for financial 2025 and has already begun a £1.45 billion repurchase programme for the new year. Chief Executive Officer Lukas Paravicini said the company is entering the next phase of its strategy with ‘strong operational momentum’, highlighting continued gains in combustible pricing and double-digit growth in next-generation products, also known as NGPs. ‘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. This transformation will enable us to fulfil our twin strategic priorities sustainable value in combustibles and scale in NGP,’ Paravicini says. Tobacco & NGP net revenue rose 1.9% to £8.32 billion from £8.16 billion, or 4.1% at constant currency. Cigarette volumes fell 1.7% but were more than offset by pricing, which drove 3.7% net revenue growth in combustibles. NGP revenue increased 14%, supported by oral nicotine demand in the US and Europe. Looking ahead, Imperial said it expects low-single-digit tobacco and double-digit NGP revenue growth in financial, with constant-currency adjusted operating profit set to rise 3% to 5%. As in prior years, it expects performance to be second-half weighted because of the phasing of combustible pricing and investment. Paravicini said: ‘Our performance in financial 2025 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting opportunities in next-generation products.’ Shares in Imperial Brands rose 2.3% to 3,226.00 pence in London on Tuesday morning. The wider FTSE 100 was down 0.8%. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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