Tobacco giant Imperial Brands to boost payouts to shareholders as it cashes in on demand for vapes

Imperial Brands has promised to increase the amount of money returned to investors from £2.4bn to £2.8bn in the year ahead

Imperial Brands will dole out more cash to shareholders as it cashes in on demand for vapes and alternative smoking products.

The tobacco giant, which makes Winston cigarettes, promised to increase the amount of money returned to investors from £2.4billion to £2.8billion in the year ahead. Shares rose 4.1 per cent, or 88p, to 2236p.

The company said it was expecting sales to have grown this year across its cigarette and so-called next generation products (NGPs). 

Vapes, heated tobacco and oral nicotine pouches come under the umbrella of NGPs because they are manufactured to separate nicotine from harmful tobacco smoke. 

Net revenue from NGPs is expected to have grown in the range of 20 per cent to 30 per cent over the year to the end of September, compared with the previous year.

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