Imperial Brands plc (LON:IMB) has announced its full year results statement for the year ended 30 September 2025
Business Highlights*
· Continued strong operational momentum has delivered further broad-based growth and enabled increased shareholder returns, creating a strong platform for ongoing value creation over the next five years.
· Tobacco and NGP net revenue growth of 4.1%, underpinned by double digit NGP net revenue growth, strong tobacco pricing and stable market share across five priority markets. Since FY20 +48 bps market share growth. FY25 reported revenue declined -0.7%.
· NGP net revenue up 13.7%, a further year of double-digit growth driven by oral nicotine in US and Europe, with share growth across all smoke-free categories; reported NGP revenue up 14.9%.
· Distribution performance reflects strong tobacco pricing offset by long-distance transportation.
· Strong growth in Group adjusted operating profit of 4.6%; reported operating profit down -1.8%.
· Adjusted earnings per share up 9.1%, driven by profit growth and share count reduction; reported EPS down -16.5%.
· Continued strong cash generation, driven by combustibles business; free cash flow of £2.7bn.
· Increased shareholder returns: FY25 dividend up 4.5% and £1.25bn buyback for FY25 now completed; £10bn returned to shareholders FY21 to FY25; £1.45bn share buyback for FY26 commenced.
*All measures at constant currency unless otherwise stated
Financial summary
| Twelve months ended 30 September 2025 | Reported | Adjusted2 | |||||||
| 2025 | 2024 | Change | 2025 | 2024 | Actual | Constant currency3 | |||
| Revenue | £m | 32,171 | 32,411 | -0.7% | – | – | – | – | |
| Tobacco & NGP net revenue1 | £m | – | – | – | 8,316 | 8,157 | +1.9% | +4.1% | |
| Operating profit | £m | 3,490 | 3,554 | -1.8% | 3,988 | 3,911 | +2.0% | +4.6% | |
| Earnings per share | P | 251.1 | 300.7 | -16.5% | 315.0 | 297.0 | +6.1% | +9.1% | |
| Net debt | £m | (8,954) | (8,340) | – | (8,406) | (7,740) | – | – | |
| Dividend per share | P | 160.32 | 153.42 | +4.5% | 160.32 | 153.42 | +4.5% | +4.5% | |
1. Tobacco & NGP net revenue is reported revenue less duty and similar items, sale of peripheral products and Distribution (Logista) revenue.
2. See page 3 for the basis of presentation and the supplementary section at the end of the financial statements for the reconciliation between reported and adjusted measures.
3. Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.
Lukas Paravicini, Imperial Brands Chief Executive Officer
“Our consistently strong operational and financial delivery provides a firm platform on which to build as we embark on the next phase of our strategy. As I take over as Chief Executive Officer, I want to thank my predecessor, Stefan Bomhard, for his leadership over the past five years, during which time we significantly strengthened the company and delivered outstanding returns for shareholders. Our performance in FY25 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next generation products.
“During the next strategic period, we will evolve the distinctive challenger approach which has underpinned our recent success. This means we will continue to invest in consumer insights, innovation and marketing capabilities. We will also continue to make deliberate, focused choices about which opportunities we pursue, and develop a simpler, more efficient and more agile organisation.
“While our approach is evolutionary, our ambition is bold – to deliver a step-change in our capabilities and fully unleash the potential of our people. This transformation will enable us to fulfil our twin strategic priorities – sustainable value in combustibles and scale in NGP – and realise our purpose of forging a path to a healthier future for moments of relaxation and pleasure.”
Delivering against our strategic priorities
Continued momentum in our combustible business
· Cigarette volumes down 1.7%, more than offset by strong pricing, driving net revenue growth of 3.7%, with resilient performance across our portfolio
· Aggregate market share for the priority markets was stable year on year. Over five years, since FY20, share gain of 48 bps
· Another year of market share gains in Germany (+45 bps) driven by continued investment in brand equity and sales force
· US stable (-1 bps) reflecting continued investment in sales excellence and brand equity, and timing of competitor investments in deep discount segment. Declines in UK (-85bps) and Spain (-45bps) as we prioritised value creation over share
· Australia share gain (+20 bps) through successfully adapting to regulatory changes and focused investment
Building a sustainable NGP business for a sustainable future
· Multi-category approach working well, delivering another year of double-digit net revenue growth (up 13.7%), with market share gains in all three categories, supported by new product launches and increased distribution
· Vapour: positive share performance with blu in Europe as market transitions to reusable devices, with continued expansion of the pod-based blu kit range; double-digit market shares in UK, Spain and France
· Modern oral: gaining share and accelerating growth of Zone in USA with distribution footprint expanded to c. 100,000 stores; positive consumer feedback to new product innovation in Europe
· Heated tobacco: positive consumer feedback to recent launch of Pulze 3.0 all-in-one device, for use with iD and iSenzia sticks, continuing to gain share
· Over the past five years, cumulative NGP net revenue growth has been 83%, with adjusted operating losses reduced by 76%
Driving value from our broader market portfolio
· Good progress in broader geographies, for example our Africa cluster, which grew tobacco net revenue at 8.9%
· Driving growth across our NGP portfolios with strong performance in France, Italy and New Zealand
Progress towards 2030
· Communicated and embedded evolved strategy with our full workforce – roll-out included face-to-face events reaching more than 600 senior leaders
· Launched brand-building framework to drive consistent, consumer-focused approach across priority combustible and NGP brands
· Progress towards simplifying our operations with the go-live of our new ERP platform in our first manufacturing site in October
· Driving efficiencies in supply chain, realising savings from third party indirect spend, investing in manufacturing excellence, and optimising factory footprint ongoing
Results Overview*
Tobacco & NGP net revenue growth driven by resilient tobacco price/mix and volume performance and NGP
· Continued strong tobacco pricing across all three regions, price mix of 5.4%
· Tobacco volumes declined by -1.7% (to 186.9bn SE) as volume declines have continued to moderate across our footprint
· NGP net revenue up 13.7% to £368m, a further year of double-digit growth driven by Europe and USA, which more than offset decline in AAACE.
· Distribution (Logista) gross profit increased 2.9% as strong tobacco pricing offset weakness in long-distance transportation
· Reported revenue declined -0.7%, reflecting the decline in tobacco revenue due to lower volumes in high excise markets and adverse foreign exchange movements, largely offset by growth in NGP and Distribution revenues
Accelerating our adjusted profit growth alongside continued investment
· Group adjusted operating profit grew +4.6%, driven by improved profitability in tobacco
· Reported operating profit declined -1.8% driven by strong regional performance, offset by adverse foreign exchange movements and impairment costs related to the implementation of our 2030 Strategy
· Tobacco and NGP adjusted operating profit grew 4.9%, reflecting strong tobacco pricing offsetting volume declines and continued investment in brand equity and sales excellence
· NGP adjusted losses reduced -1.3% to £76m (FY24: £79m), as continued improvement in gross margin was offset by investment to support the continued rollout of Zone in the USA and new product launches.
· Distribution (including eliminations) adjusted operating profit increased 0.9% as strong tobacco pricing was offset by lower profits in transportation
· Adjusted EPS grew 9.1%, reflecting adjusted operating profit growth and reduced share count, offsetting higher tax, net finance and minority interest charges. Reported EPS declined -16.5%, reflecting a higher tax charge, partly offset by the impact of lower finance costs and reduced share count
Strong free cash flow and disciplined capital allocation framework supports growing shareholder returns
· Free cash flow of £2.7bn, reflecting strong cash generation and one-off tax repayment
· Adjusted net debt £8.4bn (2024: £7.7bn); adjusted net debt to EBITDA at 2.0x (FY24: 1.8x); reported net debt £9.0bn (2024: £8.3bn)
· FY25 dividend per share up 4.5% to 160.32 pence per share, in line with our progressive dividend policy
· Ongoing multi-year share buyback: FY25 £1.25bn completed with £1.45bn underway for FY26
· Cumulative capital returns over past five years of £10bn
* All measures at constant currency unless otherwise
FY26 Outlook
Imperial Brands’ expectations for the coming year are in line with the medium-term guidance set out at our Capital Markets Day in March 2025. On a constant currency basis, we expect to deliver low-single-digit tobacco and double-digit NGP net revenue growth. Tobacco pricing will continue to more than offset cigarette volume declines, and in NGP we will continue to grow through consumer-focused innovation and disciplined execution.
For FY26, Group adjusted operating profit is expected to grow in the 3% to 5% range, on a constant currency basis, driven primarily by continued profit growth from our combustible tobacco business. In line with previous years, performance will be weighted to the second half of the year because of the phasing of combustible pricing and investment.
After 2030 Strategy costs, we expect to generate free cash flow of at least £2.2 billion in FY26, in line with the guidance provided at the Capital Markets Day in March. Growth in operating profit combined with the impact of our ongoing share buyback is expected to result in at least high-single-digit adjusted earnings per share growth for the full year. At current rates, foreign exchange translation is expected to be a tailwind of around 2.0% to 2.5% to net revenue, adjusted operating profit and earnings per share.
Basis of Presentation
· To aid understanding of our results, we use ‘adjusted’ (non-GAAP) measures to provide a consistent comparison of performance from one period to the next. Reconciliations between adjusted and reported (GAAP) measures and further definitions of adjusted measures are provided in the supplementary information section. Change at constant currency removes the effect of exchange rate movements on the translation of the results of our overseas operations. References in this document to percentage growth and increases or decreases in our adjusted results are on a constant currency basis unless stated otherwise. These are calculated by translating current year results at prior year exchange rates.
· Stick Equivalent (SE) volumes reflect our combined cigarette, fine cut tobacco, cigar and snus volumes but exclude any NGP volume such as heated tobacco, modern oral nicotine and vapour.
· Market share is presented as a 12-month average to the end of September (MAT – moving annual trend), unless otherwise stated. Aggregate market share is a weighted average across markets within our footprint
