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Highlights

  • IMB’s FY25 adjusted operating profit expected to align with previous year’s guidance.
  • FY26 shares buyback program of GBP 1.45B confirmed under the capital allocation framework of IMB.
  • Annual dividend for FY25 increased 4.5% to 160.32 pence per share, paid quarterly.

Imperial Brands PLC (LSE:IMB) released a pre-close trading statement on 7 October 2025, confirming that FY25 performance remains in line with prior guidance. The company projects low single-digit growth in tobacco and next-generation products (NGP) net revenue at constant currency, supported by pricing in combustible products and continued double-digit growth in NGP.

Adjusted operating profit is forecast to grow at a rate like FY24. High-single-digit adjusted earnings per share (EPS) growth is expected, reflecting operating profit expansion and the ongoing share buyback, partially offset by increased finance and tax costs, as well as higher minority interests in certain African markets.

Foreign exchange effects are projected to create a 2.0–2.5% headwind in net revenue and a 2.5–3.0% impact on adjusted operating profit and EPS. The company’s average number of shares for the year was 824.8 million. Leverage is expected to stay at the lower end of the 2.0–2.5 range for adjusted net debt to EBITDA.

Capital Allocation and Dividend

For FY26, Imperial Brands announced a share buyback programme of GBP 1.45B, to be completed by 28 October 2026. Combined with the progressive dividend policy, total shareholder returns for FY26 are expected to exceed GBP 2.7B, representing around 11% of the current market capitalization. Over FY21–FY25, the company has returned approximately GBP 10B to shareholders. The FY25 dividend surged 4.5% to 160.32 pence per share and will be distributed in four equal installments.

Progress on 2030 Strategy

As part of its 2030 strategic plan, Imperial Brands is focusing on operational efficiency and growth in NGP alongside continued value generation in combustibles. A consultation is underway regarding the future of the Langenhagen factory in Germany, which could result in either a sale or closure.

IMB shares were trading 2.55% higher at GBX 3,080.56 per share at the time of writing on 7 October 2025.