Imperial Brands: Disciplined

“These operational improvements will enable us to build on the consistently strong financial performance we’ve reported over the past few years. We will deliver net revenue growth from both tobacco and NGP, high single-digit growth in earnings per share, and strong cash generation.” - Stefan Bomhard, Imperial Brands CEO, 2025 CMD

The several hours of presentations during Imperial Brands’ 2025 Capital Markets Day, held March 26th, made it abundantly clear: this company is not like the larger players within the industry. It does not have a hugely dominant share in any one product. Its brown and orange color scheme does not match the vibrant palettes of others. Points were rightfully made on the role of tobacco harm reduction, but the company does not mince words when it says legacy products are not disappearing. It intends to fight within those highly profitable spaces. No platitudes were provided for creating a smokeless planet, and a guarded approach is taken to next-gen product categories.

Even amongst the limited number of investors interested in tobacco, few seem to share any excitement for Imperial. I’ve previously mentioned how Imperial Brands is perceived as an outcast, or a black sheep. Too small or too far behind, they say. But make no mistake about it. It is not the runt of the litter. It has appropriately titled itself the challenger of the industry, and challenges preconceived notions held by investors as well. To view it only as an underdog is to ignore the strategic overhaul the company announced years ago, telling everyone they were not playing the same game as the other majors. With a tinge of irony, going against the notions of ‘imperial’, no empire-building is taking place. There is no rushing headfirst. There is no growing bigger for the sake of it. The company exited markets and revamped categories. It would be doing fewer things. But it would be doing them damn well. And it has.