The boss of Imperial Brands is to retire after five years leading the tobacco giant.
Shares in the company slumped after chief executive Stefan Bomhard announced his departure from the John Player Special and Rizla maker.
The London-listed firm said Lukas Paravicini, the company’s current chief financial officer, will replace Mr Bomhard on October 1.
Mr Bomhard will remain on Imperial’s board until the end of the year and support Mr Paravicini’s transition until next May.
Meanwhile, Imperial Brands’ current chief strategy and development officer will take over as chief financial officer from October.
Imperial’s shares have risen by about 80% over the past five years under Mr Bomhard’s leadership, as he directed the company to focus on traditional cigarettes and increased shareholder returns.
Imperial Brands chairwoman Therese 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.
“Today’s appointments follow a rigorous selection process and demonstrate our deep management bench strength.”
It came as Imperial announced that revenues dipped by 3.1% to £14.6 billion for the six months to March, compared with the same period a year earlier.
The firm said net revenues across tobacco and its next-generation product business, which includes vapes and heated tobacco, were up 0.7% for the period.
It said higher pricing across its tobacco division helped to offset a slump in sales volumes.
Russ Mould, investment director at AJ Bell, said: “News that CEO Stefan Bomhard is set to retire has given the shares a jolt, along with slightly more modest profit growth than expected in the first half.
“It’s understandable then that there will be some tangible disappointment at the news of his exit.
“His replacement, current finance chief Lukas Paravicini, will likely continue to pursue a similar strategy but may have to contend with increasing regulatory pressures in the long term.”
Shares in the company dropped by 7.1% to 2,684p in early trading on Wednesday.
