Imperial Brands, the FTSE 100 cigarette and next-generation products group, has confirmed it is on course to meet all of its full-year financial targets and unveiled a £1.5 billion share buyback programme.
The announcement follows the completion of the £1.45 billion repurchase programme launched last October.
The company said it expects to deliver its sixth consecutive year of tobacco net revenue growth, with low-single-digit gains driven by pricing and market share gains in the United States and Germany, partly offset by low-single-digit volume declines at group level.
Next-generation products (NGP), which include vapes, heated tobacco and modern oral products, posted double-digit net revenue growth, with Imperial saying it gained share across all three categories.
The group's heated tobacco brand Pulze 3.0 and blu vape range both performed well in the period, and Imperial bolstered its modern oral portfolio through the acquisitions of Black Buffalo in the US and Helwit in Sweden.
Group adjusted operating profit growth is expected to land within its 3% to 5% guidance range, with high-single-digit adjusted earnings per share growth anticipated for the full year.
Free cash flow is on track to exceed £2.2 billion, and the company said it expects year-end leverage to remain at the lower end of its 2.0 to 2.5 times net debt to EBITDA target range.
Imperial also said it remains confident of achieving at least £320 million of savings by 2030, underpinning a planned £100 million overhead reduction.
The new £1.5 billion buyback is expected to complete no later than 29 October 2027.
