Home / Business and Economy / Smoking Alternatives Fuel Imperial Brands' Profits
Smoking Alternatives Fuel Imperial Brands' Profits
18 Nov
Summary
- Imperial Brands returned £10 billion to shareholders over four years.
- Demand for oral nicotine and vapes boosted company profits.
- Next generation products revenue surged by nearly 14% year-on-year.
Tobacco giant Imperial Brands has announced robust financial performance, largely attributed to the growing popularity of smoking alternatives. The company, known for brands like Golden Virginia and Winston, has returned £10 billion to shareholders over the past four years, signaling strong investor confidence. This financial success is underpinned by a significant increase in demand for its 'next generation' products, including vapes and oral nicotine.
Revenues from these innovative products, which aim to offer alternatives to traditional cigarettes, saw a nearly 14% surge year-on-year. The company highlighted strong demand for its oral nicotine product, Zone, in both the US and Europe, as well as growth in its reusable vape brand, Blu, particularly in the UK, Spain, and France. These 'next generation' products are key to the company's strategy in a shifting market.
Despite a slight overall dip in total revenues, net revenues (excluding duties) grew by 4.1%. Adjusted operating profit also saw an increase of 4.6% to £4 billion. Looking ahead, Imperial Brands anticipates continued profit growth of 3% to 5% over the next year, with a new £1.45 billion share buyback scheme planned for the 2026 financial year.
