7 October 2025
If you are covering Imperial Brands latest trading statement, please see the following comment from Chris Beckett, consumer staples analyst at Quilter Cheviot:
Imperial Brands has announced a significant increase to its share buyback programme, rising to £1.45 billion, up from £1.25 billion last year. This represents around 6% of the company’s market cap and is a key driver of shareholder returns and earnings growth.
The trading update confirms performance is in line with expectations, with revenue growth across both traditional tobacco and next-generation products. Strong pricing continues to offset volume declines, which are easing across most markets.
Imperial’s cigarette business is holding market share in its core regions, gaining ground in the US, Germany, and Australia. Meanwhile, its vaping and heated tobacco products are expected to deliver 13% revenue growth, with losses stable.
Operating profit is set to grow 4.6%, matching last year, and earnings per share are expected to rise in the high single digits, supported by the buyback. The dividend has already been announced at 160.32p, up 4.5%, offering a 5.3% yield.
While Imperial is often seen as the least premium among global tobacco peers, its strategy is improving. At a low valuation and with strong cash returns, the stock offers compelling value.
