Imperial looks to the future as earnings continue to rise

Tobacco giant Imperial Brands has increased earnings by one-fifth despite revenues staying flat as it reaps the rewards from investments in the business.

The Bristol-headquartered group, which is the fourth-largest tobacco company in the world, is nearing the end of its current five-year strategy. It says it is “on track” to deliver capital returns of £10bn over that period, which represents two-thirds of the group’s value when it launched that strategy at the start of 2021.

Stefan Bomhard, chief executive of Imperial Brands, said: “As we enter the final year of our current strategy, the investment we have made in consumer capabilities, cultural transformation and agile ways of working has supported another year of accelerated financial delivery and growing capital returns.

“These results demonstrate how we are fulfilling our role as an effective challenger for the industry, able to deliver consistently against operational and financial expectations.”

Bomhard will present the next phase of Imperial Brands’ strategy in March.

Earnings per share were up 19% in the year to September, on sales of £32.4bn, which were 0.2% lower than the year before.

Its next generation products, which includes vapes, heated tobacco, and tobacco-free oral nicotine pouches, grew by 26% as new product launches helped to its market share in a growing market.