Imperial Brands Plans £1.45 Billion Share Buyback to Boost Shareholder Value

Imperial Brands Plc has announced a new £1.45 billion ($1.9 billion) share buyback program, contributing to a total capital return of over £2.7 billion to shareholders planned for the next fiscal year, including dividends. The company reported performance in line with expectations, driven by revenue growth in both its tobacco products and next-generation products such as vape and heated tobacco, with next-generation product revenue growing between 12% and 14% at constant currency. Imperial Brands expects mid-single-digit growth in adjusted operating profit and anticipates market share gains in the US, Germany, and Australia to offset declines in Spain and the UK. Lukas Paravicini became CEO in October, following Stefan Bomhard’s retirement, and the company’s stock price has rebounded since May amid the strategic updates. Additionally, Imperial Brands has executed repurchases of shares as part of its £1.25 billion program, aiming to enhance shareholder value and reflecting confidence in its financial management. Analysts maintain a positive outlook on the stock, with a 'Buy' rating and a price target of £36.50, citing strong financial performance and attractive valuation despite some caution from technical indicators.