Tobacco firm announces £1.1bn share buyback scheme

Bristol based tobacco firm Imperial Brands has announced a £1.1bn share buy back scheme.

The company, formerly known as Imperial Tobacco, made the announcement in trading update.

According to Imperial full year trading is in line with guidance, with growth in aggregate market share of top-five priority markets.

Strong tobacco pricing is driving  revenue and adjusted operating profit growth.

The company said the implementation of our five-year strategy is driving further improvements in operational and financial performance, and it is on track to deliver in line with previous full-year guidance.

Net revenue is expected to grow in the low single digits and group adjusted operating profit growth to accelerate to the lower end of the mid-single digit range.

Focused investment in combustible markets is expected to deliver a further modest gain in the aggregate share for the full year.

This will complete three consecutive years of improved market share performance following several years of decline.

Like the first half, the US, Spain and Australia are expected to show market share growth, more than offsetting declines in Germany and the UK.

Tobacco net revenue growth has remained strong in Europe and the AAACE region, more than offsetting declines in the US.

Full-year next generation product revenue growth has accelerated in the second half of the year, driven by strong growth in Europe.