**Summary**
Imperial Brands PLC released a trading update on October 7, 2025, confirming it is on track to meet its full-year FY25 guidance. The company reported
1. **Performance Highlights**
Trading in line with expectations, driven by growth in both tobacco and Next Generation Products (NGP).
Market share gains in the US, Germany, and Australia offsetting declines in Spain and the UK.
Double-digit NGP net revenue growth for the fifth consecutive year.
Group adjusted operating profit growth similar to the previous year.
High-single-digit adjusted EPS growth, supported by operating profit growth and share buybacks.
2. **Strategic Progress**
Completion of the 2021-2025 strategy, with a strong foundation for the 2030 strategy.
Focus on simplifying and streamlining operations, including a consultation on the future of its Langenhagen, Germany factory (potential sale or closure).
3. **Capital Allocation**
Announced a £1.45 billion share buyback for FY26, reflecting confidence in operational execution.
Progressive dividend policy, with a 4.5% increase in the FY25 annual dividend to 160.32 pence per share.
Expected capital returns to shareholders exceeding £2.7 billion in FY26, representing ~11% of current market capitalization.
4. **Financial Outlook**
Low single-digit tobacco and NGP net revenue growth at constant currency.
NGP losses expected to remain flat year-on-year.
Foreign exchange translation expected to be a 2.0-2.5% headwind to net revenue and 2.5-3.0% to adjusted operating profit and EPS.
5. **Future Plans**
Annual Results for FY25 to be announced on November 18, 2025.
Continued focus on sustainable value creation in combustibles and scaling NGP as part of the 2030 strategy.
Imperial Brands remains committed to delivering strong shareholder returns through dividends and share buybacks while advancing its long-term transformation.