London, June 8, 2026, 14:12 BST
- Imperial Brands stock rose 0.25% in late London deals. The FTSE 100 barely moved.
- The stock is attempting to keep its rebound going following Friday’s 2.79% rise, after it slid closer to its 52-week low.
- Investors are looking at the £1.45 billion buyback, rising dividend, and efforts in U.S. oral nicotine, while watching market-share declines and cost risks.
Imperial Brands PLC stock ticked up in London on Monday. Investors kept watching the tobacco company’s plans for cash returns, after shares have struggled and some are doubtful the firm can keep its cigarette share.
Imperial Brands shares traded at 2,768 pence on the sell side and 2,769 pence to buy at 13:54 BST, showing a 7 pence gain, or 0.25%, on delayed data. The FTSE 100 was up 0.07%. Sector data from Barclays had tobacco stocks higher by 1.47%.
Imperial is looking for some stability. The shares climbed 2.79% on Friday, beating the FTSE 100, but AJ Bell said the stock is still near its 52-week low of 2,626p and well under the 3,632.04p peak for the year.
Imperial’s support for the stock is direct: cash returns. The company said in May it finished £809 million of share buybacks in the first half and is sticking to a £1.45 billion buyback plan. The interim dividend moved up 4%. A buyback is when a company purchases its own shares, which reduces the share count and can lift earnings per share if profits stay steady.
Chief Executive Lukas Paravicini said the group is “on track with our £1.45bn share buy back” and has lifted the dividend by 4%. Paravicini also said Imperial had made “a positive start” to its 2030 strategy, with help from pricing in combustibles and stronger sales in next-generation products. Imperial Brands
Imperial bought 5,469 shares for cancellation at an average price of 2,705.9499p each on June 5, the latest buyback filing showed. The purchase was part of the company’s £1.45 billion programme. Cancellation takes the shares out of circulation.
Investors are keeping an eye on Imperial’s moves outside cigarettes. The company last month said it would buy Black Buffalo, a modern oral business in the U.S., for $150 million upfront plus more later depending on performance. Paravicini said the deal was a “disciplined and focused approach” to growing next-generation products like vapes, heated tobacco, and oral nicotine. Imperial Brands
Kim Reed, CEO of ITG Brands, Imperial’s U.S. arm, said the “oral category continues to evolve rapidly.” Black Buffalo co-founder Mark Hanson called the brand a play on “innovation” and “deep consumer insights.” These comments come as Imperial looks to grow in the U.S. nicotine market, where bigger players have poured in more money. Imperial Brands
Imperial’s half-year results came in mixed. Tobacco net revenue grew 1.5% and NGP net revenue was up 7.5%. Adjusted operating profit edged up 0.6%. But reported operating profit dropped 36.5%, mostly hit by Delaware settlement charges and costs linked to the 2030 plan.
Imperial shares are “moderately undervalued,” Morningstar senior equity analyst Kristoffer Inton said. “Imperial shares look undervalued to us,” he wrote. Inton said NGP is “a minor value driver” and Imperial’s long-term revenue growth trails a lot of its peers. Morningstar
Peer reaction was mixed but largely supportive on Monday. Shares in British American Tobacco, the bigger London peer of Imperial, were last quoted up 1.84% at 4,484p to sell and 4,486p to buy, according to delayed numbers. BAT sells tobacco and nicotine products in vapor, modern oral and heated tobacco.
But risk is not limited. Imperial said in April it was seeing modest share losses in its top markets like the US, Germany, UK, Spain and Australia. Reuters said the company counted on a stronger second half to hit its year targets. Imperial has also pointed to Middle East tensions as a cost and macro risk.
BAT’s update last week kept the sector on edge. Shares dropped after BAT lifted its forecast for smoking-alternatives revenue but stuck with its overall group guidance, Reuters reported. CEO Tadeu Marroco said the U.S. illicit vape market is valued at £7 billion. Barclays analyst Pallav Mittal noted some investors had hoped for a bump in revenue guidance.
Imperial shareholders are set for a first interim dividend payout on June 30. Looking ahead, the financial calendar marks a second ex-dividend date for Aug. 20 and the release of full-year numbers on Nov. 17.
Monday’s session hasn’t focused much on the 7p price swing. Instead, traders are watching to see if buybacks and price hikes can do the heavy lifting, holding cigarette profits as the market waits for a real nicotine business outside tobacco.
