Back

IMB

1.01%
GOOD

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

The tobacco company unveils its 2030 strategy, focusing on driving sustainable growth in its combustible and next-generation product businesses while maintaining a disciplined capital allocation framework.

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.

Key Dates

2030
Imperial Brands' 2030 strategy implementation
2026
Start of 'evergreen' share buyback program
2025
Full-year results for FY25
GENERAL UPDATE