Imperial Brands c.e.o., Stefan Bomhard, says the company’s 2030 strategy builds on the firm foundations of its current plan for stronger performance and returns. Photo credit: Imperial Brands
Imperial Brands Plc. outlined its mission to invest in the company’s five core markets: the US, Germany, UK, Spain, and Australia. Imperial’s 2030 strategy includes both the expansion of its combustible and next-generation products (NGP) business, as well as a continued commitment to the creation of “long-term value.”
Speaking at the company’s Capital Markets Day, c.e.o. Stefan Bomhard said the company’s 2030 strategy “builds on the firm foundations of our current plan, which has created a better business delivering a stronger, more consistent operational and financial performance, and excellent returns for shareholders.”
The five core markets for Imperial together account for approximately 70% of the company’s adjusted operating profit, according to Bomhard, adding that Imperial intends to sustain market share by optimizing brand and sales strategies. “By applying a performance-driven, consumer-led approach to our wider portfolio of tobacco markets, we expect them to make a greater contribution to our overall performance over the next five years,” he said.
Imperial is aiming for double-digit revenue growth in its NGP (which includes both vape and oral products) by leveraging consumer perceptions and expanding its market reach. “We have built a solid foundation based on credible brands and differentiated products that resonate with consumers,” Bomhard said. “Our goal is to sharpen our consumer insights and sales capabilities to further drive growth in NGP.”
Imperial Brands has identified three key factors to support its strategy, according to Bomhard:
- Differentiated consumer & brand capabilities: The company has established a Global Consumer Organization to refine brand positioning and innovation to acquire a better understanding of consumer preferences.
- High-performance culture: Imperial aims to increase efficiency and accountability within its workforce by “enhancing leadership skills and fostering collaboration” across regions,
- Simplified, efficient, and data-led organization: The company is investing in new enterprise resource planning and global business services to drive further efficiencies, with expected annualized savings of approximately £320 million by 2030.
Imperial also announced an annual “evergreen” share buyback for the next five years, alongside a progressive dividend policy. “We are maintaining our rigorous capital allocation framework, which has both supported investment in growth and delivered substantial, growing capital returns for shareholders,” Bomhard affirmed. “We believe this combination of sustainable growth and capital returns reinforces a compelling investment case for shareholders.”
Financially speaking, Imperial remains on track to meet its fiscal year 2025 targets, expecting low single-digit growth in tobacco revenue and robust double-digit growth in NGP revenue. Group adjusted operating profit is projected to grow at a rate of 3-5% annually, with adjusted earnings per share (EPS) growth in the high single digits, supported by share buybacks.
For the coming year, Imperial expects its financial performance to be stronger toward the second half, driven by combustible pricing adjustments and NGP expansion. The company forecasts annual free cash flow generation of between £2.2 billion and £3.0 billion.