Imperial Brands (IMB.UK) reported solid results for the financial year, achieving adjusted operating profit of £3.99 billion, up 2% year-on-year and slightly exceeding the analyst consensus of £3.98 billion. The company forecasts further growth in adjusted operating profit of 3% to 5% for 2026. The tobacco and NGP (Next Generation Products) segment reported a 2.2% increase in adjusted operating profit to £3.67 billion, with double-digit growth in net revenue for this segment expected next year. The company’s shares are up 3.11% in today’s trading session following the release of the results.
However, the results of the regional segments paint a mixed picture: Europe generated a 6.3% increase in operating profit to £1.64 billion, exceeding market estimates, while the Americas and Africa, Asia and Central and Eastern Europe regions recorded slight declines in this figure. Net revenues from the tobacco and NGP segments increased by 1.9% to £8.32 billion, and distribution sales also increased by 1.8%. Total tobacco sales amounted to 186.9 billion units, exceeding expectations, despite a decline in volumes in most regions.
Imperial Brands forecasts that its 2026 results will be dominated by the second half of the year due to the phasing of tobacco product pricing and investments. The company expects tobacco prices to continue to outweigh the impact of declining cigarette volumes. In addition, it anticipates a favourable currency impact of 2.0-2.5% on net revenue, operating profit and earnings per share. A share buy-back programme worth £1.45 billion has also been launched for 2026.
Key results and forecasts for Imperial Brands:
- Adjusted operating profit for 2025: £3.99 billion (+2% y/y); (forecast: £3.98 billion)
- Adjusted operating profit growth forecast for 2026: +3% to +5%
- Net revenues for the Tobacco & NGP segment: £8.32 billion (+1.9% y/y); (forecast: £8.18 billion)
- Net revenues of the distribution segment: £1.53 billion (+1.8% y/y)
- Tobacco sales volume: 186.9 billion units (forecast: 182.51 billion GBP)
- Share buyback programme for 2026: £1.45 billion
- EPS (adjusted earnings per share) growth forecast for 2026: high single-digit growth
- Significant contribution from 2H expected in results thanks to price phasing and investments
- Favourable exchange rate forecasts at 2.0-2.5%
The company’s shares maintain a stable, long-term upward trend and are trading at their highest levels since 2017. Source: xStation
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