Imperial Brands CEO Stefan Bomhard to retire, CFO takes the reins
May 14 (Reuters) - Imperial Brands (IMB.L), opens new tab said CEO Stefan Bomhard will retire after five years on the job, sending the British cigarette maker's shares down more than 7% as investors lamented the loss of a leader credited with turning its performance around.
Under Bomhard, the maker of Winston, Davidoff and Gauloises cigarettes has enjoyed a rebound in sales and returns as it focused on core markets and its tobacco business, while also looking to expand smoke alternatives.
Finance chief Lukas Paravicini will take over as CEO on October 1 and will be tasked with driving that growth strategy forward as the company targets up to 5% annual profit growth until 2030, opens new tab.
Shares in the company, which also owns e-cigarette brand blu, nicotine pouch brand Zone and heated tobacco device Pulze, were trading 7.5% lower at 0801 GMT on Wednesday, having gained nearly 90% during Bomhard's tenure.
"There is no doubting the disappointment in Stefan Bomhard announcing his retirement... after an exceptional five year run," Panmure Liberum analyst Rae Maile said in a note.
CFO Paravicini was, however, in "no way second best", he said, adding that his appointment ensures a continuation of Imperial's strategy.
Bomhard told journalists on a call that he did not plan to take any other executive role and was retiring, describing the move as a "very personal decision" after 11 years leading large UK companies.
He was previously CEO of car distributor Inchcape (INCH.L), opens new tab and held senior roles at Unilever (ULVR.L), opens new tab and Bacardi.
Bomhard will remain on the board until December 31 and will be available until May 2026 to support the transition, the company said.
Imperial Brands' chief strategy and development officer, Murray McGowan, will replace Paravicini as CFO.
The company also reported a 1.8% rise in first-half adjusted operating profit at constant currency, just shy of analysts' estimates of 2%, and reaffirmed its annual forecast after reporting market share growth in its five priority markets.
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