Imperial Brands Plc plans a £1.5 billion ($2 billion) share buyback in the next fiscal year, citing continued confidence in its future performance and cost-cutting efforts. The British maker of Winston cigarettes and Rizla papers said Thursday it’s committed to returning surplus cash to investors and reiterated that it’s on track to meet its guidance in the current year. The buyback comes amid a weak period for shares of Imperial Brands, which are down about 20% in the past 12 months through Wednesday’s close.
Earlier this year Bloomberg News reported that the company is preparing to slash thousands of jobs in critical markets, including in the US and Europe, as part of a sweeping cost-cutting drive. Like rivals Imperial Brands is grappling with a decline in smoking and mounting regulatory challenges. Imperial said it is confident it will achieve savings of at least £320 million by 2030.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing