Imperial Brands Announces Share Buyback Plan Until 2030

Imperial Brands has confirmed the continuation of its share buyback programme until the end of the decade. The Bristol-based company, well-known for its tobacco products including L&B and JPS cigarettes, has outlined ambitious growth forecasts during the recent investor event held in London.

The firm plans to return surplus capital to shareholders over the next five years through an extended share buyback initiative. The size of the buyback scheme will be determined annually, reflecting the company’s financial performance and market conditions.

Imperial has already made significant strides in shareholder returns, with approximately £3.4 billion expected to be returned since the inception of its current programme in 2022. These efforts are part of a broader strategy in which the company aims for capital returns to exceed £10 billion over a five-year span, representing around 67 per cent of its market capitalisation at the start of the strategy in January 2021.

As one of the world’s largest and oldest tobacco manufacturers, Imperial relies on its tobacco markets in five key countries: the UK, US, Germany, Spain, and Australia. These markets collectively account for approximately 70 per cent of the group’s adjusted operating profit, solidifying the company’s focus on maintaining its market share across these regions.

The company is also committed to disciplined investments in next-generation products, such as Blu vapes and Zone nicotine pouches. Alongside this, Imperial will remain open to small bolt-on acquisitions to enhance its portfolio.

Analysts have noted that Imperial’s performance over the past five years has been commendable, with significant returns for shareholders and a robust operational strategy. The tobacco giant is expected to continue generating cash flow by adjusting product prices to counteract volume pressures and regulatory challenges.

Overall, Imperial Brands maintains a positive outlook for the future, with projections of low single-digit net revenue growth both in traditional tobacco and new products. Operating profit growth is anticipated to remain consistent in the mid-single-digit range over the coming years.