Street Calls of the Week
LONDON - Imperial Brands PLC announced Tuesday it expects to meet its full-year guidance for fiscal year 2025, with growth in both tobacco and next-generation products (NGP), while unveiling a £1.45 billion share buyback program for fiscal year 2026.
The tobacco company reported it is on track to deliver low single-digit tobacco and NGP net revenue growth at constant currency for FY25, with group adjusted operating profit growth at a similar rate to last year.
Market share gains in the United States, Germany and Australia are expected to broadly offset declines in Spain and the United Kingdom, according to the trading update. The company’s NGP business continues to show momentum with double-digit net revenue growth projected at around the mid-point of a 12-14% range.
Imperial Brands anticipates high single-digit constant currency adjusted earnings per share growth for the full year, supported by operating profit growth and the ongoing share buyback program. This will be partially offset by higher finance and tax costs, as well as increased minority interests from strong growth in African markets.
At current exchange rates, foreign exchange translation is expected to create a headwind of approximately 2.0-2.5% to net revenue and 2.5-3.0% to group adjusted operating profit and earnings per share.
The company also disclosed it has begun consultation regarding the future of its factory in Langenhagen, Germany, which may result in either a sale or closure of the site.
For FY26, Imperial Brands announced it will return £1.45 billion to shareholders through its share buyback program, expected to complete by October 28, 2026. Combined with its progressive dividend policy, the company expects to return over £2.7 billion to shareholders in the coming fiscal year, representing approximately 11% of its current market capitalization.
Imperial Brands will announce its annual results for the year ended September 30, 2025, on November 18, according to the press release statement.
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