Imperial Brands CEO to leave FTSE 100 giant as successor named
The boss of Imperial Brands is to retire after five years at the helm of the business at the London-listed tobacco giant.
Stefan Bomhard, who joined the company in July 2020, will step down as CEO in October this year. He will remain on the company’s board until the end of 2025.
The German executive, who previously headed distribution business Inchcape, will be succeeded by Lukas Paravicini, who currently serves as the company’s CFO.
Thérèse Esperdy, chair of Imperial Brands, 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.”
Bomhard’s tenure as Imperial’s CEO had been largely praised by the company’s shareholders, over which time the Bristol-based business’s stock has appreciated by more than 60 per cent despite the long-term decline in demand for cigarettes.
Shares in the FTSE 100 firm sunk as much as eight per cent following the news of Bomhard’s departure.
“There is no doubting the disappointment in Stefan Bomhard announcing his retirement from Imperial after an exceptional five year run as CEO,” analysts at Panmure Liberum said.
“Stepping up to CEO, Lukas Paravicini is in no way second best. We have seen consistently that Lukas has considerable skills beyond being CFO and the promotion is well deserved.”
Imperial Brands’ sales slip
News of Bomhard’s departure comes as Imperial Brands reported a slip in sales for the six months to the end of March.
Revenues for the period declined by 3.1 per cent to £14.6bn, with price rises offsetting steeper tobacco volume declines.
The company, which owns the Rizla, Golden Virginia and Winston brands, said earnings per share was up 0.7 per cent, adding that it expected its full-year results to be in-line with expectations “despite a more uncertain global economic environment.”
“Results are “in-line” on pretty much every line, and certainly close enough that no-one should have delusions of modelling accuracy,” Panmure analyst Rae Maile said.
“The company had guided that profit performance this year was going to be weighted towards H2 and while for many companies that is often on a wing and a prayer, in Imperial’s case the track record for setting and delivering against guidance is lengthening.”