Increased demand for smoking alternatives, such as oral nicotine, and increases in cigarette prices have helped boost profits at tobacco giant Imperial Brands.
The company behind brands such as Golden Virginia, Winston and Rizla said £10bn had been handed over to shareholders in the last four years.
It revealed that revenue amounted to £32.2bn for the year to the end of September, down 0.7% on the previous year.
But net of rights, revenue grew 4.1% year-on-year, at constant exchange rates.
The group's adjusted operating profit rose 4.6% to £4bn in the last year.
Imperial Brands posted another strong year for its so-called “next generation” products, which include vaporizers, oral nicotine and heated tobacco.
NGPs are manufactured to separate nicotine from harmful tobacco smoke and have increased in popularity in countries around the world as many people abandon traditional cigarettes.
Category revenue increased nearly 14% year over year, including growing demand for its oral nicotine products footprint in the U.S. and Europe.
The pouches come in a variety of flavors and strengths and are designed to sit between the gum and lip so the nicotine can be absorbed through the mouth.
The company said it increased its share of the reusable vaporizer market with its Blu e-cigarette brand, particularly in the United Kingdom, Spain and France.
Meanwhile, cigarette net revenue grew 3.7% year-on-year, and average prices rose 5.4% as sales volume declined.
Imperial Brands, which is listed on the London Stock Exchange, said £10 billion was returned to its shareholders between the 2021 and 2025 financial years.
It has initiated a £1.45 billion share buyback plan for the 2026 financial year.
Lukas Paravicini, CEO of Imperial Brands, said: “Our performance in FY25 (financial year 2025) adds to our track record of consistent growth, demonstrating the sustainability of our tobacco business and the exciting growth opportunities in next-generation products.”
The company expects its adjusted operating profit to grow between 3% and 5% over the next year, driven by profit growth from its traditional tobacco business.
