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Imperial Brands PLC confirmed the performance measures and targets for its FY25 Long-Term Incentive Plan (LTIP) grant, which was made on 17 February 2025. The plan includes weighted targets for Earnings Per Share growth (40%, 3.3% cut-in to 5.5% max), Return on Invested Capital (15%, 18.9% cut-in to 21.7% max), and Cumulative Free Cash Flow (15%, £5,500m cut-in to £7,100m max). Additional measures cover Relative Total Shareholder Return (20%), Scope 1 & 2 carbon emissions reduction (5%), and Energy consumption reduction (5%).
| Date | 27 Mar 2025 |
| Time | 07:00:15 |
| Category | Director/PDMR dealings |
| ID | 3858C |
IMPERIAL BRANDS PLC
Legal Entity Identifier (LEI) No. 549300DFVPOB67JL3A42
Long-Term Incentive Plan Performance measures and targets
Further to RNS # 5611X and its 2024 Annual Report and Accounts, the Company confirms that the performance measures and targets for the FY25 Long-Term Incentive Plan grant made on 17 February 2025 are as shown below.
|
|
Weight |
Cut-in |
Target |
Max |
|
Earnings per share growth (EPS)1 |
40% |
3.3% |
4.5% |
5.5% |
|
Return on invested capital (ROIC) |
15% |
18.9% |
20.9% |
21.7% |
|
Cumulative free cash flow (CFCF £m) |
15% |
5,500 |
6,400 |
7,100 |
|
Relative Total shareholder return (TSR) |
20% |
Median |
N/A |
Upper quart. |
|
Scope 1 & 2 carbon emissions reduction |
5% |
73.0% |
75.0% |
76.0% |
|
Energy consumption reduction |
5% |
5.0% |
7.0% |
8.0% |
1. EPS targets shown above exclude the benefit of the Company's share buyback programme. This methodology aligns with the Investment Association guidance.
2. The targets shown should not be construed as guidance.
3. Each element operates independently and is capable of vesting regardless of the Company's performance in respect of the other elements.
The Remuneration Committee retains the discretion under the rules of the LTIP to adjust up or down including to zero the number of shares that vest taking into account a number of factors including personal or corporate performance and circumstances that were unforeseen at the date of grant.
Chris Winters
Deputy Company Secretary
Copies of our announcements are available on our website:
www.imperialbrandsplc.com/investor-hub/stock-exchange-announcements
Cautionary Statement
Certain statements in this announcement constitute or may constitute forward-looking statements. Any statement in this announcement that is not a statement of historical fact including, without limitation, those regarding the Company's future expectations, operations, financial performance, financial condition and business is or may be a forward-looking statement. Such forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected or implied in any forward-looking statement. These risks and uncertainties include, among other factors, changing economic, financial, business or other market conditions. These and other factors could adversely affect the outcome and financial effects of the plans and events described in this announcement. As a result, you are cautioned not to place any reliance on such forward-looking statements. The forward-looking statements reflect knowledge and information available at the date of this announcement and the Company undertakes no obligation to update its view of such risks and uncertainties or to update the forward-looking statements contained herein. Nothing in this announcement should be construed as a profit forecast or profit estimate and no statement in this announcement should be interpreted to mean that the future earnings per share of the Company for current or future financial years will necessarily match or exceed the historical or published earnings per share of the Company. This announcement has been prepared for, and only for the members of the Company, as a body, and no other persons. The Company, its Directors, employees, agents or advisers do not accept or assume responsibility to any other person to whom this announcement is shown or into whose hands it may come, and any such responsibility or liability is expressly disclaimed.