Imperial Brands Unveils 2030 Strategy to Drive Shareholder Returns
Why we think this is good
The RNS outlines Imperial Brands' 2030 strategy, which builds on the firm's current five-year plan. The company expects to deliver low single-digit tobacco net revenue growth, double-digit NGP net revenue growth, and around 3-5% annual growth in adjusted operating profit. This suggests the company's financial performance is expected to be positive. The announcement of an 'evergreen' share buyback program over the next five years is also a positive for shareholders. While the guidance is strong, it does not meet the criteria for a 'VERY_GOOD' rating, as there is no explicit profit upgrade or statement of trading significantly ahead of market expectations.
Key Points
- Outlines 2030 strategy to drive sustainable growth in combustibles and build scale in next-generation products (NGP)
- Expects low single-digit tobacco net revenue growth and double-digit NGP net revenue growth
- Anticipates around 3-5% annual growth in adjusted operating profit
- Announces 'evergreen' share buyback program over the next five years
Summary
Imperial Brands has outlined its 2030 strategy, which builds on the firm's current five-year plan. The key elements of the strategy include:
- Driving sustainable value through continued focus on five priority combustible markets, which account for around 70% of adjusted tobacco operating profit
- Building a meaningful next-generation products (NGP) business to support profitable growth
- Developing differentiated brands, a high-performance culture, and a data-led, efficient organisation
The company expects to deliver low single-digit tobacco net revenue growth and double-digit NGP net revenue growth, with around 3-5% annual growth in adjusted operating profit. Imperial Brands also announced an 'evergreen' share buyback program over the next five years, providing additional returns for shareholders.