Bristol-based tobacco giant Imperial Brands has announced an increased dividend for shareholders following what it describes as a strong full-year performance for the 2025 financial period.
The maker of Davidoff, West and Golden Virginia cigarettes reported growth across key financial metrics, enabling enhanced returns to investors alongside the commencement of a substantial share repurchase programme.
Financial Performance Highlights
For the year ending 30th September 2025, Imperial Brands recorded net revenue of £8.3 billion from its tobacco and next generation products divisions, representing a 1.9% increase year-on-year. When excluding currency fluctuations, this growth figure rises to 4.1%.
While cigarette volumes declined by 1.7%, the company successfully offset this reduction through strategic pricing adjustments. The business demonstrated significant profit growth, with group adjusted operating profit climbing 4.6% to £3.99 billion.
Adjusted earnings per share saw an even more substantial increase of 9.1% to 315 pence, underscoring the company's improved profitability.
Enhanced Shareholder Returns
Imperial Brands' board has proposed a final dividend of 40.08 pence per share. When combined with the first and second interim dividends already distributed during the 2025 financial year, this represents a 4.5% increase compared to the previous year's payments.
The company additionally confirmed that its previously announced £1.45 billion share buyback scheme for 2026 is now officially underway, signalling confidence in both current performance and future prospects.
Strategic Direction and Future Outlook
New Chief Executive Lukas Paravicini stated that the company's consistent operational and financial delivery provides a solid foundation for the next strategic phase. "Our performance in FY25 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next generation products," he commented.
Mr Paravicini emphasised Imperial's commitment to ongoing investment in consumer insights, innovation and marketing, while making "deliberate, focused choices" about future opportunities.
Looking ahead, Imperial Brands forecasts low-single-digit tobacco net revenue growth and double-digit next generation product net revenue growth for the new financial year. The company expects pricing strategies to continue offsetting cigarette volume declines.
On a constant currency basis, adjusted operating profit is projected to increase by 3% to 5%, primarily driven by continued profit growth from the combustible tobacco business. The company anticipates generating free cash flow of at least £2.2 billion in the 2026 financial year.
Performance throughout the coming year is expected to follow historical patterns, with stronger results weighted toward the second half due to the phasing of combustible pricing and strategic investments.
