London, May 15, 2026, 16:04 (BST)
- Imperial Brands shares slipped Friday, giving back some ground after Thursday’s sharp rally.
- The company announced new share buybacks as part of its £1.45 billion repurchase program.
- Imperial’s push into nicotine pouches is facing added pressure after a WHO warning on the products.
Shares of Imperial Brands PLC slipped 1.87% to 2,779p in London on Friday, giving back some ground after Thursday’s pop. Investors sifted through a new share buyback filing—Imperial picked up more stock for cancellation on May 14—even as regulatory pressure on nicotine pouches and a tough second-half profit goal hung over the stock.
This shift is significant: Imperial’s story now hinges on its ability to keep cash flowing and maintain cigarette pricing clout, even as it pushes to grow in newer nicotine lines. Buybacks take shares off the table, which helps prop up earnings per share—important when cigarette volumes keep sliding.
The company disclosed it bought back 11,145 ordinary shares on May 14, paying an average of 2,780.9369p each. That followed a purchase of 150,000 shares the previous day at 2,786.0515p apiece. All shares are being cancelled as part of the £1.45 billion buyback announced last year.
Imperial shares jumped 3.99% Thursday, ending the session at £28.66—well ahead of the FTSE 100’s 0.46% gain, according to MarketWatch. The move followed a volatile stretch for the stock, with investors reacting to half-year numbers and renewed scrutiny over market share in some of Imperial’s largest territories.
Imperial posted £14.72 billion in revenue for the half-year ending March 31, marking a 0.8% rise. Adjusted operating profit slipped 0.5% to £1.64 billion at actual rates but edged up 0.6% on a constant currency basis. The group raised its interim dividend by 4% and reiterated it is on pace to hit its full-year targets.
Imperial CEO Lukas Paravicini said the £1.45 billion buyback is progressing as planned. He pushed back on concerns about slipping market share, arguing “not all basis points of market share are equal.” According to Paravicini, the company let go of some volume in important markets on purpose, preferring to protect value instead of chasing business that delivers poor returns. MarketScreener
The tougher issue now: can that discipline last as smokers continue to cut down? According to Reuters, Imperial’s market share in its top five markets — the U.S., Germany, Britain, Spain, and Australia — slipped 16 basis points in the first half, the company said. RBC analysts flagged the drop as worrying; since 2020, Imperial’s recovery had leaned heavily on gaining share.
Next-generation products, or NGP—the sector’s shorthand for vapes, heated tobacco, and oral nicotine—are supposed to counteract the ongoing decline. During the results presentation, Chief Financial Officer Murray McGowan said Imperial plans to “transition out of the US vapour category,” scaling down its old myblu operations in the US and shifting focus toward modern oral nicotine products, like Zone. MarketScreener
Imperial now finds itself up against British American Tobacco, Philip Morris International, and Altria. In the U.S. nicotine pouch market, BAT’s Velo, Philip Morris’s Zyn, and Altria’s On! continue to dominate the scene. Meanwhile, Imperial reported that its Zone product captured a 2.8% share by volume, with net revenue climbing 20% once the effects of one-off promotions were stripped out.
There’s a real possibility that regulation could outpace the nicotine pouch sector. On Friday, the World Health Organization called on governments to step up oversight of nicotine pouches, highlighting concerns over high nicotine concentrations, kid-friendly flavors, and marketing that targets youth. The agency noted roughly 160 countries don’t have any regulations aimed directly at these products.
There’s a risk on the cost side, too. Imperial flagged the potential for higher input and logistics expenses if conflict in the Middle East drags on, with possible pressure on consumer demand as well. So far, the company said, there’s been no significant hit. This is key, since management is counting on a stronger performance in the second half to lift profit for the full year.
Imperial’s own forecast pegs adjusted operating profit growth between 3% and 5%, with guidance for at least high-single-digit EPS growth at constant currency. For comparison, the analyst consensus compiled by Imperial ahead of the results showed expectations for FY26 group adjusted operating profit to rise 3.2% and adjusted EPS to land at 333.9p.
At the moment, it’s the buyback propping things up. Up ahead, Imperial faces the challenge of sustaining price hikes, holding onto cash flow, and proving that Zone and the rest of the NGP lineup can expand—without getting hit by fresh regulatory hurdles.
