On track to deliver full-year guidance for FY26 on all metrics; £1.5 billion share buyback for FY27

• Sixth consecutive year of tobacco net revenue growth¹
• Double-digit NGP net revenue growth¹, with share gains in all three categories
• Group adjusted operating profit growth in line with 3% to 5%¹ guidance range
• High-single-digit earnings per share growth¹ and more than £2.2 billion of free cash flow
• Confident of achieving savings of at least £320 million by 2030; building capabilities to become more consumer-centric, data-led, and agile; delivering efficiencies
• Completed FY26 £1.45 billion share repurchase and announcing £1.5 billion share buy-back for FY27. 

Pre-close trading update FY26

Our tobacco model continues to deliver sustainable growth in net revenue and adjusted operating profit¹. This translates into earnings per share growth and robust cashflow, underpinning strong returns for shareholders. Tobacco net revenue is expected to show low-single-digit growth¹, driven by robust pricing and share gains in our target segments in US and Germany, partially offset by low-single-digit volume declines at a Group level.

We continue to build scale in NGP and expect to grow share in all three categories, with double-digit net revenue growth¹. We are seeing strong momentum in heated tobacco with Pulze 3.0 and new iD sticks, in vape, our blu kit range continues to perform well and in modern oral our existing portfolio of growing brands, including Zone and Skruf, has been enhanced by the acquisitions of Black Buffalo in the US and Helwit in Sweden.

Group adjusted operating profit growth is anticipated to be within our 3% to 5% range¹. We expect to deliver high-single-digit adjusted earnings per share growth¹ for the full year. Our adjusted operating cash conversion remains strong, and we are on track to deliver free cash flow of more than £2.2 billion for the full year.

We currently expect foreign exchange translation to be a tailwind of c.0% to 0.5% to net revenue and Group adjusted operating profit and a c.0% to 0.5% headwind to earnings per share. The average number of shares for the year was 780.9 million shares. 

Clear capital allocation framework supporting shareholder returns

We have completed the £1.45 billion share buyback announced in October 2025. Consistent with our capital allocation framework, today we are announcing a further £1.5 billion share buyback for FY27, reflecting continued confidence in future business performance, which we expect to complete no later than 29 October 2027. We remain committed to returning surplus capital to shareholders via our ongoing “evergreen” share buyback programme, which represents an ongoing source of shareholder returns, alongside our progressive dividend policy.

Over the past six years from FY21 to FY26, we have delivered close to c.£13 billion of cumulative capital returns to shareholders through dividends and share buyback combined. We have reduced our issued share capital by over 21% since the buyback programme commenced in October 2022.

We expect FY26 leverage to remain at the lower end of our 2.0-2.5 range for net debt to EBITDA.

Progress on Transformation

We have strong momentum behind our transformation towards becoming a more consumer-centric, data led, agile and efficient challenger. We are confident of achieving at least £320 million of savings by 2030, including key manufacturing programmes delivered during the year, which underpin a future £100 million overhead reduction. We continue to build our consumer capabilities, underpinned by investment in data and technology.

Our Annual Results for the year ended 30 September 2026 will be announced on 17 November 2026.

¹ All growth rates are at constant currency, unless otherwise stated.

ENDS

Notes:
The Group uses 'adjusted' (non-GAAP) measures as we believe they provide a better comparison between reporting periods. The definition of our adjusted measures is unchanged from our full-year results. We also use the term 'constant currency', which removes the effect of exchange rate movements on the translation of the results of our overseas operations.

Cautionary Statement

Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company’s future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.