Shares of UK-based Imperial Brands (GB:IMB) gained nearly 4% as of writing after the company announced an increase in shareholder returns for the next Fiscal Year (Fiscal 2025). In FY25, returns are expected to rise to approximately £2.8 billion, compared to a £2.4 billion commitment in the previous year. Additionally, Imperial Brands reported that its performance for FY24 was in line with expectations.
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Imperial Brands is a global tobacco manufacturer, known for its popular brands such as West, Davidoff, and Gauloises.
Imperial Brands to Boost Dividend Payments
Imperial Brands announced that it will pay cash dividends of approximately £1.5 billion in FY25 in four equal quarterly payments.
For Fiscal 2024, the company announced a dividend of 153.43 pence per share, reflecting a 4.5% increase from the previous year.
Additionally, Imperial Brands is initiating a £1.25 billion share buyback for Fiscal 2025, expected to be completed by October 29, 2025. This buyback marks a 13.6% increase from last year and will bring total buybacks to £3.35 billion since the program began in Fiscal 2022.
Imperial Brands Highlights FY24 Performance
Imperial Brand’s performance in FY24 was driven by solid revenue growth of vaping, heated tobacco, and oral-nicotine products. Net revenue for these next-generation products is projected to have increased by 20%-30% at constant currency, with growth observed across all three regions.
Meanwhile, its adjusted operating profit growth at constant currency improved in the second half of the year.
The company will publish its annual results for FY24 on November 19, 2024.
Is Imperial Brands a Good Stock to Buy?
According to TipRanks’ consensus, IMB stock has received a Strong Buy rating based on three Buy recommendations. The Imperial Brands share price target is 2,315.13p, reflecting a 4% increase from the current trading level.
