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UK's Imperial Brands affirms annual outlook, launches $2 billion share buyback - Finance news and analysis from Global Banking & Finance Review
Finance

UK's Imperial Brands affirms annual outlook, launches $2 billion share buyback

Published by Global Banking & Finance Review

Posted on October 8, 2026

2 min read

· Last updated: October 8, 2026

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Imperial Brands Confirms Annual Outlook and Announces $2 Billion Buyback

Imperial Brands' Financial Performance and Strategic Initiatives

Annual Outlook and Share Buyback Announcement

Oct 8 (Reuters) - Imperial Brands said on Thursday it was on track to meet its full-year guidance and launched a new £1.5 billion ($1.98 billion) share buyback, as resilient growth in smoking alternatives helped offset declines in cigarette sales.

Growth Drivers and Next-Generation Products

• Imperial has been leaning on price increases and a push into next-generation products (NGP) to drive earnings

Cost Savings and Overhead Reduction

• The maker of Davidoff cigarettes and blu vapes said it was confident of achieving at least £320 million of savings by 2030, underpinned by a future £100 million overhead reduction

Buyback Timeline and Financial Expectations

• The new buyback is expected to be completed by no later than October 29, 2027, the company said

• Imperial expects group adjusted operating profit growth within a 3% to 5% range and tobacco net revenue growth in low-single-digit for the fiscal year ended September 30

Market Share and Revenue Growth in NGP Categories

• It expects to grow market share in all three NGP categories, heated tobacco, vape and modern oral, with double-digit net revenue growth

Upcoming Results Announcement

• Full-year results will be announced on November 17

Exchange Rate Information

($1 = 0.7577 pounds)

Reporting Credits

(Reporting by Yamini Kalia in Bengaluru; Editing by Ronojoy Mazumdar)

Key Takeaways

  • Resilient NGP (next‑generation products) performance: double‑digit net revenue growth and market share gains across heated tobacco, vape and oral categories are offsetting declines in traditional cigarettes. (imperialbrandsplc.com)
  • Transformation and cost savings: Imperial is confident of delivering at least £320 million in annual cost savings by 2030, including £100 million from overhead reductions, supporting profitability and enabling shareholder returns. (imperialbrandsplc.com)
  • Capital returns ramp up: Alongside confirming group adjusted operating profit growth of 3–5% and low‑single‑digit tobacco net revenue growth for fiscal year ending Sept 30, the company launches a £1.5 billion share buyback—expected to finish by Oct 29, 2027—and maintains its progressive dividend approach. (imperialbrandsplc.com)

References

Frequently Asked Questions

What is the value of Imperial Brands' new share buyback?
The new share buyback launched by Imperial Brands is valued at £1.5 billion ($1.98 billion).
How is Imperial Brands offsetting declines in cigarette sales?
Imperial Brands is offsetting cigarette sales declines through price increases and growth in next-generation products such as vapes and heated tobacco.
When will Imperial Brands complete the new buyback program?
Imperial Brands expects to complete the new share buyback by October 29, 2027.
What growth does Imperial Brands expect for its group adjusted operating profit?
Imperial Brands expects its group adjusted operating profit to grow within a 3% to 5% range for the fiscal year ended September 30.

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