By Timothy S. Donahue
Top Takeaways:
- Outgoing CEO Stefan Bomhard says Imperial has built a stronger foundation and reversed declines in Germany.
- Incoming CEO Lukas Paravicini pledges double-digit NGP growth, aided by bolt-on M&A.
- Zone pouch brand reached 3% share in U.S.; U.K. vapor business passed 10% share amid disposable ban.
Imperial Brands used the Barclays Global Consumer Staples Conference to highlight progress under outgoing CEO Stefan Bomhard while incoming CEO Lukas Paravicini pledged continuity and growth in next-generation products (NGPs).
Bomhard, who steps down at the end of September after five years, said Imperial now has “a much stronger foundation versus where it was in 2020” and highlighted the company’s turnaround in NGPs. “Five years later now, I think there is a broad recognition that Imperial can clearly play in this space. And as you will know, at the half-year, we reported that we’re growing market share in all three categories,” he said.
Paravicini, currently CFO, will take over as CEO on Oct. 1. He emphasized both stability and acceleration. “It is our outspoken desire and commitment to continue to build our NGP business to a meaningful business, by growing double-digit over the next five years,” he told investors. He added that Imperial will complement organic expansion with “bolt-on acquisitions” in reduced-harm products.
The executives pointed to specific gains in the U.S., Imperial’s largest market, where the Zone nicotine pouch brand has grown from launch in early 2024 to a 3% share. “We have found an avenue … to bring to U.S. consumers a product that we know has a very significant consumer appeal, but we have been able to do this in the way with respecting the process,” Bomhard said.
In Germany, Imperial has reversed more than a decade of share declines. “In the last fiscal year, we stabilized market share. At the half-year for this fiscal year, we reported market share gains, and it’s very fair to assume we will report for the full year market share gains in Germany,” Bomhard said.
In the U.S., Paravicini acknowledged volume pressures and tax increases but pointed to momentum in vapor. “We have just crossed 10% market share in our NGP and our vapor business in the UK for the first time at half-year,” he saidBarclays-Global-Consumer-Staple…. He added that Imperial will time entry into the local pouch market carefully: “It’s not if, but when, we launch that and when it makes sense for a fourth-largest to invest.”
The executives also addressed the impact of the U.K. and France’s bans on disposable e-cigarettes. “In the last 12 months we’ve more than doubled our market share in the vaping segment,” Bomhard said, crediting a pivot to pod-based systems.
Looking ahead, Paravicini reaffirmed the financial targets announced at Capital Markets Day, including 3–5% EBIT growth and high-single-digit EPS growth through 2030, supported by ongoing share repurchases and £320 million in efficiency savings.
“That savings is embedded in the guidance we have given, because we will use it to increase our NGP business, to strengthen our capability around brands and consumer insights, and to return excess capital to our shareholders,” he said.
