According to a report from Sharesmagazine on October 5th, the stock price of Imperial Brands has increased by 3% to reach £16.3 per share. The tobacco company stated that its operations are progressing "as planned" and it expects the financial performance for the fiscal year 2023 to meet previous guidance. Additionally, the company announced an additional £1.1 billion share buyback plan for the fiscal year 2024.
Imperial Tobacco possesses a range of well-known brands, including Davidoff, Gauloises, and Winston, and this recent business growth has been fueled by strong tobacco pricing and the momentum of Next Generation Products (NGP).
The company stated that tobacco and NGP revenues for the fiscal year ending on September 30 are expected to grow by single-digit percentages. Additionally, adjusted operating profit growth for the group is projected to accelerate towards the lower end of the mid-range. The company commented, "We anticipate making concentrated investments in our key combustible markets, which should lead to a slight increase in total market share for our top five markets throughout the year.
The company has announced its commitment to a £1.1 billion share buyback in the 2024 fiscal year, representing a 10% increase from the previous fiscal year's £1 billion buyback. During that time, it repurchased 52.1 million shares, accounting for 5.5% of its share capital. Imperial Tobacco states that this increase in share buyback reflects "our confidence in our strategy and cash generation" as well as a commitment to providing greater returns to larger shareholders.
The Imperial Tobacco Company stated, "We anticipate that the shareholder capital return for the next fiscal year will exceed £2.4 billion, which represents approximately 17% of our current market value."
The stock prices of Imperial Tobacco and its competitor British American Tobacco (BAT) have been negatively impacted due to British Prime Minister Rishi Sunak's announcement of potential measures to tighten the legal smoking age and review e-cigarette products.
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