Key Points (NGP-focused)

• NGP as the strongest growth engine: FY25 NGP net revenue rose to £368m, up 13.7% at constant currency, marking the fifth consecutive year of double-digit growth.

• Americas accelerating: NGP revenue in the Americas surged 69.8%, driven by the rollout of the Zone modern oral brand, now distributed across approximately 100,000 retail outlets—the fastest-growing business within the Group.

• European expansion continues: Europe recorded 8.8% NGP revenue growth, with blu achieving double-digit vapour market shares in the UK, France and Spain.

• Multi-category momentum: All three categories advanced—modern oral scaling rapidly, vapour shifting toward pod-based reusable devices, and heated tobacco gaining traction following the launch of Pulze 3.0 in Italy and Greece.

• Losses continue to narrow: Adjusted NGP operating losses reduced to £76m (FY24: £79m), moving the category closer to profitability.

• Combustibles continue to support NGP investment: Despite a 1.7% decline in stick-equivalent volumes, strong price/mix of +5.4% helped generate cash to fund NGP innovation and market expansion.

2Firsts, November 18, 2025 — Imperial Brands PLC (LON: IMB) released its financial results for the year ended 30 September 2025. Tobacco & Next Generation Products (NGP) net revenue grew 4.1% at constant currency, with NGP once again delivering double-digit growth and remaining the most dynamic contributor within the Group portfolio.

Headline Financials

• Reported revenue: £32.171bn, down 0.7% year-on-year.
• Tobacco & NGP net revenue: £8.316bn, up 1.9% reported / 4.1% constant currency.
• NGP net revenue: £368m, +13.7% at constant currency (+11.8% reported).
• Tobacco volumes: 186.9bn stick equivalents, down 1.7%; price/mix +5.4%.
• Adjusted operating profit: £3.988bn, up 4.6% at constant currency; reported operating profit £3.490bn (-1.8%).
• Adjusted EPS: 315.0p, up 9.1% constant currency; reported EPS 251.1p (-16.5%).
• Free cash flow: £2.749bn (FY24: £2.434bn).
• Shareholder returns: FY25 buyback of £1.25bn completed; FY26 buyback increased to £1.45bn.

The company has returned nearly £10bn to shareholders over FY20–FY25, while maintaining net debt/EBITDA at 2.0x.

NGP Performance: Multi-category Strategy Delivering Scale

Imperial Brands continues to execute its multi-category NGP strategy across vapour, modern oral, and heated tobacco:

Overall performance

• NGP net revenue reached £368m, +13.7% at constant currency.
• Over five years, cumulative NGP net revenue is up 83%; adjusted operating losses reduced 76% versus FY20.
• FY25 adjusted NGP operating loss narrowed to £76m, signalling ongoing progress toward breakeven.

Regional performance (constant currency)

• Europe: NGP revenue +8.8% to £280m.
• Americas: NGP revenue +69.8% to £70m, fastest-growing region.
• AAACE: NGP revenue down 30.8% to £18m following selective exits from vapour markets.
• The company notes that in eight European markets, NGP accounts for over 20% of local Tobacco & NGP net revenue.

Category Breakdown

Modern Oral

• The US remains the core driver of growth.
• Zone (launched Feb 2024) expanded to ~100,000 stores, reaching ~2.8% US share.
• The portfolio now includes 11 flavours and 6mg / 9mg strengths.

Vapour

• Focused on Western Europe; pivot to pod-based devices amid disposable restrictions.
• blu kit achieved double-digit shares in the UK, Spain and France.
• Reusable devices are gaining traction post disposable bans in the UK and France.

Heated Tobacco

• Positioned as an affordable alternative in Southern and Eastern Europe.
• FY25 launch of Pulze 3.0 in Italy and Greece received favourable early feedback.
• Compatible with iD tobacco sticks and iSenzia non-tobacco sticks.

Combustibles: Price/Mix Supports Cash Generation

Despite structural volume declines:

• Tobacco net revenue +3.7% at constant currency.
• Volumes down 1.7%, but pricing +5.4% supported revenue and profit.
• Priority market share stable overall since FY20 (+48bps cumulative).

This segment remains a key source of cash to fund NGP expansion and innovation.

Strategy & Leadership

FY25 marks the final year of the previous five-year plan and the start of the company’s new 2030 Strategy.

• Lukas Paravicini became CEO on 1 October;
• Murray McGowan appointed CFO.

Strategic pillars:

• Sustain value in combustibles;
• Scale profitably in NGP (Scale in NGP);
• Strengthen brand-building and consumer insights;
• Boost operational efficiency via ERP rollout, data platforms and AI.

FY26 Outlook

At constant currency, Imperial Brands expects:

• Low single-digit growth in tobacco net revenue;
• Double-digit growth in NGP net revenue;
• Adjusted operating profit growth 3–5%;
• Free cash flow ≥£2.2bn post 2030-strategy investment;
• High single-digit growth in adjusted EPS, supported by ongoing buybacks.

2Firsts Observation: ZONE Rolls Out Across Multiple European Markets

2Firsts recently observed the latest ZONE retail display at Stockholm Arlanda Airport’s duty-free area. On-site, ZONE is showcased on a dedicated black-framed shelf, though its overall visibility and shelf space are notably smaller compared with ZYN and VELO in the same zone.

In terms of pricing, ZONE adopts a bulk-pack strategy. The Zone No33 Juicy Peach S3 multipack is priced at 179–199 SEK for 10 cans, giving it a significantly lower per-can price than both VELO and ZYN. VELO also offers multipacks (mainly 10-can formats) but at higher price ranges, while ZYN’s 159 SEK / 5-can bundle results in a much higher per-can price than ZONE.

Separately, according to a Grocery Trader report on November 17, Imperial Brands has also launched the ZONE nicotine pouch brand in the UK. The product is priced at £6.50, with five initial flavors: Sweet Mint, Cool Mint, Watermelon Ice, Juicy Peach, and Berry Blast. All flavors come in 10 mg strength, except Cool Mint and Berry Blast, which also have an 11 mg option.

Imperial noted that the 9–12 mg strength segment accounts for 43.4% of the UK market, and ZONE is positioned directly within this mainstream band to capture growth opportunities.（Read more：Imperial Brands launches ZONE nicotine pouches in the UK, covering the core 9–12 mg strength segment）