CEO of Winston, Davidoff cigarette maker to retire after tobacco sales push

Imperial Brands Plc Chief Executive Officer Stefan Bomhard is to retire after five years in charge of the British tobacco maker, which turned its focus back to cigarettes and boosted shareholder returns on his watch. 

Bomhard, who will step down in October, will be replaced by current Chief Financial Officer Lukas Paravicini, a former Nestle veteran who joined Imperial Brands in May 2021. 

When he took the helm, Bomhard said the company’s push to develop alternative products, such as vaping devices, had come too much at the expense of its core cigarette unit, which still makes up the bulk of its sales. Bomhard aimed to take a more disciplined approach to investment in so-called reduced-harm products. 

The company’s shares have risen almost 80% in the past five years. 

Imperial, which makes Winston and Davidoff cigarettes, grew tobacco market share in the first half, helped by gains in the US and Germany, it said Wednesday.

Growth was driven by price increases for tobacco, offsetting volume declines, while revenue from its newer products such as vapes and oral nicotine pouches rose by 15.4%. 

The company said it’s on track to meet its full-year targets.