Finance
Imperial Brands beats profit forecast, sees growth in smoking alternatives
Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Imperial Brands beat profit forecasts under new CEO Lukas Paravicini, focusing on smoking alternatives and predicting steady growth.
(Reuters) -Imperial Brands edged above annual profit estimates in its first set of results under new CEO Lukas Paravicini and forecast continued higher prices of its tobacco products alongside growing demand for smoking alternatives.
The maker of Davidoff cigarettes and blu e-cigarettes has promised 3%-5% annual profit growth and a share buyback programme every year until 2030 as it builds scale in smoking alternatives, and on Tuesday forecast 2026 results to be in line with this forecast.
The company, which also owns nicotine pouch brand Zone and heated tobacco device Pulze, reported adjusted operating income of 3.99 billion pounds ($5.25 billion) for the year to September 30, compared with a consensus estimate of 3.98 billion pounds, and up from 3.91 billion pounds a year ago.
Sales and returns have rebounded after it retreated to focus on core markets and its tobacco business following an earlier misstep in vapes that eroded market share.
"During the next strategic period, we will evolve the distinctive challenger approach which has underpinned our recent success," said Paravicini, who replaced Stefan Bomhard as CEO in October.
The company said its revenue from tobacco and newer portfolio of smoking alternatives grew 4.1% to 8.32 billion pounds in 2025.
"The combustibles business appears in good shape, with resilient volumes and continued pricing power, and the full-year 2026 guidance suggests this is likely to continue," Jefferies analysts said in a note.
"As such, the core Imperial Brands investment case of value maximisation in combustibles and elevated shareholder cash returns appears reinforced by today's print."
Imperial's shares rose 2.5% to 3,233 pence in early trading. They have surged about 24% this year, outpacing the FTSE 100's 18.5% rise.
($1 = 0.7606 pounds)
(Reporting by Shashwat Awasthi in Bengaluru and Emma Rumney in London; Editing by Sherry Jacob-Phillips and Louise Heavens)
Adjusted operating income refers to a company's earnings before interest and taxes, adjusted for non-recurring items, providing a clearer view of operational performance.
Smoking alternatives are products designed to replace traditional tobacco smoking, including e-cigarettes, nicotine pouches, and heated tobacco devices.
A share buyback program is when a company repurchases its own shares from the marketplace, often to reduce the number of outstanding shares and increase shareholder value.
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