Shares in Golden Virginia owner plunge as turnaround boss retires
Imperial Brands shares plunged on Wednesday after the tobacco group revealed chief executive Stefan Bomhard will retire after five years with the group.
Bomhard is credited with turnings around performance at Imperial, which owns Golden Virginia, Rizla and Lambert & Butler among its stable of brands.
His renewed focus on core markets and its tobacco business, while expanding in smoking alternatives like vapes, has driven a rebound in sales in recent years.
FTSE 100-listed Imperial told shareholders on Wednesday Bomhard will remain on the board until the end of the year but be available until May 2026 to support the transition.
The former chief executive of car distributor Inchscape will be replaced by Imperial finance chief Lukas Paravicini in October. Chief strategy and development officer Murray McGowan will replace Paravicini as CFO.
Bomhard, who also previously held senior roles at Unilever and Bacardi, told media that he did not plan to take any other executive role and was retiring, describing the move as a 'very personal decision'.
Panmure Liberum analyst Rae Maile said in a note: "There is no doubting the disappointment in Stefan Bomhard announcing his retirement... after an exceptional five year run.'
CFO Paravicini was, however, in 'no way second best', he said, adding that his appointment ensures a continuation of Imperial's strategy.
Chair of Imperial Brands Thérèse Esperdy said: 'Under Stefan's leadership, Imperial Brands has delivered consistent growth and outstanding returns for shareholders.
'One of Stefan's many great achievements was the way he comprehensively refreshed our executive leadership, making strong hires from other consumer businesses and nurturing internal talent.
'The management team's focus on consumer capabilities, agile ways of working and a performance culture has led both to a successful turn-around in our tobacco business and a strengthened platform in next generation products.'
Imperial Brands shares were down 6.6 per cent to 2,699p by late morning on Wednesday.
They have added around 65 per cent over five years under Bomhard's leadership.
It came as Imperial revealed a 1.8 per cent rise in first-half adjusted operating profit, just shy of analyst forecasts of 2 per cent, and reaffirmed its annual forecast.
Paravicini, who will be tasked with achieving the group's target of up to 5 per cent annual profit growth until 2030, said: Lukas Paravicini said: 'As we deliver on the next stage of our strategy, Imperial Brands will continue to play its distinctive role as the strong challenger business in our industry.
'By getting even closer to our consumers, staying focused and investing to be more agile, we will deliver sustainable growth in tobacco and profitable scale in next generation products.'
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