Imperial Brands pledges annual profit growth, share buyback until 2030

(Reuters) -Imperial Brands will grow annual operating profits by 3-5% and launch a share buyback every year until 2030, the cigarette maker said, as it prepared to set out its growth strategy at a capital markets day on Wednesday.

The maker of Winston cigarettes has enjoyed a rebound in sales and returns after retreating to focus on core markets and its tobacco business following an earlier foray into vapes that saw it lose market share.

It outlined a new five-year strategy on Wednesday signalling a continuation of that focus but also an effort to build scale in smoking alternatives like vapes.

Over the years to 2030, that plan would deliver up to 5% operating profit growth a year, led by smoking alternatives, and an annual share buyback, with free cash flows of up to 3 billion pounds ($3.9 billion) per year, it said in a statement.

"The strategy builds on the firm foundations of our current plan, which has created a better business delivering a stronger, more consistent operational and financial performance, and excellent returns for shareholders," Chief Executive Stefan Bomhard said.

Imperial's shares, however, fell following the announcement to stand 1.3% down at 1159 GMT.

The company also said it was on track to deliver on annual guidance for its current financial year.

($1 = 0.7762 pounds)

(Reporting by Aby Jose Koilparambil in Bengaluru and Emma Rumney in London. Editing by Savio D'Souza and Mark Potter)