8 October 2026
If you are covering Imperial Brands' latest financial results, please find below a comment from Chris Beckett, consumer staples analyst at Quilter Cheviot:
"Imperial issued a solid trading update this morning, reiterating current year guidance and reloading the buyback for full year 2027 at a slightly higher rate. After this year's stock decline and derating this should be enough to encourage a positive market response, and early signs point to this being the case.
"Management believes that the company is 'on track to deliver full year guidance'. The traditional cigarette business is performing well delivering rising revenue (single digit) and operating profits (3-5%). Imperial’s strategy has evolved since the change of CEO to be more focused on segmental share gains rather than targeting share stabilisation across its top markets. Such segmental growth is being achieved in the US and Germany but the implication is for continued modest group level share losses in these markets. This is a slightly weaker message to investors and a reason for this year's stock weakness.
"Next generation products (vaping, nicotine pouches and heated tobacco etc.) revenues are growing double digit but remain a small part of the company, with only around 5% of sales. Group profitability is anticipated to come in within the 3-5% target range translating into high single digit earnings per share growth and free cash flow of more than £2.2bn. This cashflow funds a progressive dividend policy with a 7% prospective yield and a modestly increased £1.5bn buyback, 8% of market cap. This combined 15% return is central for the investment case of Imperial."
