Imperial Brands has announced that it has launched a new £1.5bn share buyback scheme for the 2027 financial year, following the recent completion of a £1.45bn scheme earlier this month.

The tobacco and new generation products firm said in its pre-close full-year trading update that it expects to deliver low-single-digit growth, marking its sixth year of tobacco net revenue growth, driven by “robust pricing” and share gains in target segments in the US and Germany.

It also anticipates double-digit next generation products net revenue growth, with strong momentum in its heated tobacco, vape and modern oral products.

Furthermore, its adjusted operating profit is expected to grow within its 3% to 5% guidance range, with high-single-digit adjusted earnings per share growth for the full year.

Imperial Brands added that it is on track to deliver free cash flow of more than £2.2bn for the full year.

Following the update, shares in Imperial Brands increased by almost 5%.

Head of markets at AJ Bell, Dan Coatsworth, said the firm has been so busy buying brands in recent years, "it’s a wonder there are any left".

He concluded: "The company’s latest bumper buyback accompanies a trading update which confirmed it is on track for full-year targets and is an effort on the part of management to affirm their faith in the longer-term outlook.

"Over the last six years Imperial Brands has delivered nearly £13bn through dividends and buybacks and reduced the number of shares in issue by more than 21%. This achievement, plus its defensive credentials, helped Imperial Brands shares to chalk up respectable gains over the period, though the stock has run out of puff in the past six months.

"The challenge facing tobacco companies is the decline in smoking in the West, driven by consumer habits and regulation, which is pressuring volumes. However, the company’s pricing power with those who still smoke has helped to keep revenues rising."

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