Why invest in Imperial Brands?

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Why invest in Imperial?

As the smallest of the global players in the tobacco and nicotine industry, we play to our natural strengths as a challenger business. This means identifying opportunities overlooked by competitors and executing with speed and agility, supported by strong capabilities and culture.

1. A sustainable, cash-generative tobacco business

Focused investments in brands and sales execution underpin stable market share and enable strong pricing, leading to growing revenue. In the majority of our focus markets, tobacco remains affordable – creating opportunities for sustainable, long-term value.

Our differentiated brands

2. A targeted and fast-growing next generation nicotine business

Our flexible, partnership approach to innovation and focused market entry framework are building a disciplined, sustainable NGP business. We are committed to annual double-digit revenue growth and, as we build scale, we are moving towards profitability.

Forging a path to a healthier future

3. A transformation to become a simpler, more data-enabled business

Targeted investments in technology, data and processes are enabling our people to get closer to our consumers, to focus on the big levers which drive value and to act with greater agility. This is enabling us to become a stronger challenger and deliver more sustainable growth.

How we are transforming

4. A consistent, strong financial outlook

Our stratgey supports our strong medium-term financial outlook, to grow adjusted earnings per share by at least highsingle digit at constant currency, to deliver annual free cash flow of at least £2.2 billion and to maintain our disciplined approach to capital allocation.

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5. Delivery on our commitment to a healthier future

Our business model is aligned to a long-term consumer trend towards potentially less harmful smoke-free nicotine products. As we responsibly scale our NGP operations we will play an increasingly material role in reducing the harm caused by tobacco.

Our approach to people and planet

Combined, these are generating a strong financial outlook

Improving tobacco and NGP net revenue trajectory, with a compound annual growth rate of 1% to 2%.

Enhancing profitability through operational leverage, better geographic mix from continued stabilisation of priority market shares, reduced losses from our investment in NGP and restructuring cost savings driving a mid single-digit compound annual growth rate for Group adjusted operating profit.

The business is highly cash generative with low capital intensity, a working capital focus and disciplined capital expenditure producing adjusted operating cash conversion of typically 90% to 100%.

Enhancing capital returns

We have a clear capital allocation framework alongside our strategy:

1. Invest in strategy

Since our strategy is largely organic and we work with innovation partners, our capital expenditure needs are relatively light. We have committed to invest in our transformation and consider small strategic acquisitions.

2. Maintain leverage

We are committed to an investment grade credit rating and will maintain our leverage at the lower end of the range 2.0-2.5 times adjusted net debt/ EBITDA.

3. Progressive dividend growth

We have committed to grow our dividend every year, taking into account the underlying business performance.

4. Return surplus capital to shareholders

We have committed to an evergreen share buyback up to 2030, with £1.45 billion share repurchase announced for FY26.

Who we are

Our Brands

People and planet

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Our investment case