Imperial Brands to deliver full-year guidance as it launches £1.1bn buy-back
Imperial Brands, the tobacco giant behind Lambert & Butler, Winston and Gauloises, has said it is on track to deliver its full-year guidance thanks to high prices of cigarettes and demand for tobacco alternatives.
The cigarette company, which also makes Golden Virginia tobacco, said that strong pricing led by the rising costs helped offset historic declines led by fewer people smoking.
It has also announced a £1.1bn share buyback for 2024 on the heels of a £1bn buyback this year.
Imperial Brands said it expects that capital returns to shareholders will exceed £2.4bn in the coming fiscal year, representing about 17 per cent of its current market capitalisation.
Imperial’s European arm also performed well in 2022-23, with total net revenues reaching £3.47bn, driven by strong tobacco sales which reached £3bn, while smoking alternatives racked up £166m of net revenues.
The company’s operating profit for the year reached £1.5bn.
Yesterday, the company’s share price slid more than 1 per cent after Prime Minister Rishi Sunak announced new proposals to crack down on smoking.
Speaking at the Conservative party conference in Manchester, Sunak proposed raising the legal smoking age so that a 14-year-old today would be unable to legally buy cigarettes in their lifetime.
Like other big tobacco companies, Imperial Brands has focused on rolling out smoking alternatives in recent years.
Imperial Brand’s share price was up 1.55 per cent this morning.