Imperial Brands has said that its 2025 financial year results demonstrate "consistent growth", after its underlying revenue increased by 4.1% to £8.3bn in the year to 30 September.

The British tobacco company recorded a 4.6% increase in its adjusted operating profit, totalling £4bn, while its earnings per share increased by 9.1% to 315 pence.

The firm said that while its cigarette volume sales dropped by 1.7% year-on-year, this was offset by strong pricing.

Furthermore, its multi-category approach led to a revenue increase of 13.7% in its next generation products (NGP) division, with growth in its vapour, modern oral and heated tobacco products.

Chief executive officer at Imperial Brands, Lukas Paravicini, said: "Our consistently strong operational and financial delivery provides a firm platform on which to build as we embark on the next phase of our strategy.

"Our performance in FY25 adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next generation products."

In its outlook for the 2026 financial year, Imperial Brands said that its expectations are in line with its medium-term guidance, and it expects to deliver low-single-digit tobacco and double-digit NGP growth.

Furthermore, its operating profit is expected to grow between 3% and 5%, in this period, driven primarily by continued profit growth from its combustible tobacco business.

Following this update, shares in Imperial Brands increased by over 2%.

Head of equity research at Hargreaves Lansdown, Derren Nathan, concluded: "Imperial Brands had a resilient performance in 2025, and news that it expects that to continue in 2026 was well received by investors. However, the company anticipates a slow start so there could be some pressure to pick up the pace in the second half.

"Despite setbacks in some key markets, Imperial's focus on gaining share of key tobacco markets is largely proving successful. While volume pressures have eased, the company has leveraged the addictive nature of its product and invested in its brands, allowing it to keep moving prices upwards. We still see potential for further price hikes in many of Imperial’s most important markets.

"Tobacco companies need to move with the times. Regulatory pressure and changing consumer preferences towards healthier lifestyles means we think there will be further challenges ahead."

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