Imperial Brands has on Tuesday reported another year of strong growth in next-generation products (NGPs), with double-digit gains driven by its blu vapour range, Zone modern oral nicotine pouches and the latest Pulze heated tobacco device.
The company’s full year 2025 results underline a strategy increasingly centred on building scale in smoke-free products, even as combustibles continue to fund investment.
The group’s NGP net revenue rose 13.7 per cent, marking another year of double-digit expansion. Growth was powered by oral nicotine in the US and Europe, continued momentum for blu in key European vapour markets, and early share gains for its newly updated Pulze 3.0 all-in-one heated tobacco device.
In vapour, Imperial said blu delivered “positive share performance” in Europe, noting the ongoing shift toward reusable systems. The expanded pod-based blu kit range now holds double-digit market shares in the UK, Spain and France, reinforcing blu’s position in the established e-cigarette segment following a turbulent regulatory year for disposables.
The company is also pushing hard into the fast-growing modern oral segment. Its Zone pouch brand is now stocked in around 100,000 US stores, with the rollout supported by continued investment and new flavour and format innovation.
Early European launches also drew “positive consumer feedback” as the category broadens beyond Scandinavia, with Imperial announcing the launch of Zone in the UK earlier this week.
Meanwhile, heated tobacco remains a strategic platform. Imperial reported encouraging consumer uptake of its Pulze 3.0 device and iD/iSenzia stick ranges, saying it is “continuing to gain share” in pilot and early-stage markets.
Overall, the group said it has achieved 83 per cent cumulative NGP net-revenue growth over the past five years, while reducing NGP operating losses by 76 per cent - a sign that its multi-category approach is increasingly delivering scale. Losses narrowed again in FY25, though increased US investment slowed the pace of improvement.
The company also reiterated its commitment to “consumer-focused innovation” and “disciplined execution”, with new CEO Lukas Paravicini emphasising that the company will evolve its “distinctive challenger approach” which has underpinned its recent success.
“Our consistently strong operational and financial delivery provides a firm platform on which to build as we embark on the next phase of our strategy,” he said. “While our approach is evolutionary, our ambition is bold – to deliver a step-change in our capabilities and fully unleash the potential of our people. This transformation will enable us to fulfil our twin strategic priorities – sustainable value in combustibles and scale in NGP.”
Imperial reported group revenue of £32.17 billion, down 0.7 per cent on a reported basis, reflecting lower tobacco volumes in high-excise markets and adverse currency movements, though these were largely offset by stronger NGP and distribution revenues.
Adjusted operating profit rose 4.6 per cent to £3.99 billion, supported by stronger pricing and cost discipline, while reported operating profit dipped 1.8 per cent due to FX and one-off impairment charges linked to the company’s 2030 strategy rollout. Adjusted earnings per share grew 9.1 per cent, helped by profit growth and continued share buybacks.
Combustibles again provided the bulk of earnings, with strong pricing delivering 3.7 per cent tobacco net-revenue growth despite a modest 1.7 per cent decline in cigarette volumes. Imperial reported stable aggregate market share across its five priority markets, including further gains in Germany and Australia, though share slipped in the UK and Spain as the company prioritised profitability over volume.
Looking ahead, Imperial expects double-digit NGP revenue growth again in FY26, supported by new blu, Zone and Pulze developments. Group operating profit is forecast to rise 3–5 per cent, weighted to the second half of the year.