On Thursday, Shares in Imperial Brands (LON: IMB) rose over 4 per cent, the highest since the beginning of the covid-19 pandemic, after the tobacco giant reported another EUR 1 billion (USD1.13 billion) buyback program. The company said the move reflects strong trading and broader progress in an ongoing plan to increase shareholder returns and profitability.

The new buyback program will likely reduce Imperial’s share count by around 5.5 per cent over the upcoming 12 months. It would raise total returns over the period, including dividends, to around EUR 2.3 billion, or 13 per cent of the group’s present market value.

As per RBC’s calculations, the move is likely to lift yields per share by between 4 per cent and 5 per cent, depending on how far Imperial’s borrowing costs rise. Imperial has up to EUR 8 billion in long-term debt it requires. This year, the more defensive nature of Imperial’s business has caused it to outshine most of the stock market, with only a few defense and energy companies in the FTSE 100 beating its 22 per cent growth since January 1.

The company disclosed that in September, it had ended its fiscal year in line with its previous guidance of a 1 per cent incline in constant-currency revenue, all thanks to a strong rebound in tourism over the summer that uplifted duty-free sales. By 04:10 ET (08:10 GMT), Imperial stock was up 4.4 per cent, just off its intraday high.