Imperial’s stock gained nearly 90% under Stefan Bomhard’s leadership. Photo credit: Imperial Brands
Imperial Brands (IMB.L) announced that c.e.o. Stefan Bomhard will step down after five years in the role, surprising investors and sending shares down more than 7%. Many credited Bomhard with revitalizing the British cigarette maker, and the news of his departure sparked concern about the company’s future direction.
During Bomhard’s tenure, the company—best known for brands like Winston, Davidoff, and Gauloises—saw a strong recovery in sales and profitability. He sharpened the company’s focus on its main tobacco markets while gradually building a presence in the smoking alternatives space.
Lukas Paravicini, currently the c.f.o., will step into the c.e.o. role on October 1. He will lead the company’s growth strategy, which targets annual profit increases of up to 5% through 2030.
Imperial’s shares were trading 7.9% lower after the announcement. The stock had gained nearly 90% under Bomhard’s leadership. The company also owns the blu e-cigarette brand, Zone nicotine pouches, and the Pulze heated tobacco device.
Before Bomhard joined, Imperial had been losing ground in its core tobacco segment and struggled to gain momentum with new products like vapes. That stagnation led to years of disappointing sales and a write-down in 2020.
Once at the helm, Bomhard redirected Imperial’s focus back to traditional tobacco products in key markets, a move that restored market share and improved returns. At the time, he noted that the company’s earlier focus on alternatives like vapes may have come at the expense of its core cigarette business, which continues to drive the majority of sales. He called for a more focused investment strategy around reduced-risk products, refining the company's approach to next-generation nicotine offerings, a category that saw double-digit growth in the first half of this year.
On a recent call with analysts, Paravicini said he remained fully committed to Imperial’s five-year strategy laid out in March. He also emphasized a capital allocation plan designed to deliver strong returns to shareholders.
Bomhard described his exit as "a very personal decision," saying he wanted to devote more time to his family after more than a decade leading large UK businesses. Before joining Imperial, he served as c.e.o. of car distributor Inchcape and held senior positions at Unilever and Bacardi.
He will stay on the board until December 31 and remain available to assist with the leadership transition through May 2026. Imperial also announced that chief strategy and development officer Murray McGowan will succeed Paravicini as c.f.o. and join the board on October 1.
The company posted a 1.8% rise in adjusted operating profit for the first half at constant currency, narrowly missing analysts’ 2% forecast, but it reaffirmed its full-year outlook.