Imperial Brands PLC banner

Imperial Brands PLC
XMUN:ITB

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Imperial Brands PLC Logo
Imperial Brands PLC
XMUN:ITB
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Price: 32.76 EUR 2.12%
Market Cap: €28.1B

Imperial Brands PLC
Investor Relations

Imperial Brands is a tobacco company that sells cigarettes, fine-cut tobacco, cigars, rolling papers, and some next-generation nicotine products such as vaping and heated-tobacco items. Its brands are sold through retailers, convenience stores, wholesalers, and duty-free channels in many markets around the world. The company makes money mainly by selling branded tobacco and nicotine products to distributors and retailers, who then sell them to adult consumers. It also earns income from pricing its brands, keeping shelf space with retailers, and selling products that are used repeatedly rather than bought once. What makes Imperial Brands different is that it sits near the center of the tobacco value chain: it owns the brands, manages product development and packaging, and relies on a wide network of third-party sellers to reach shoppers. That gives it a business built around recurring demand, strong brand recognition, and tight control over distribution in a heavily regulated industry.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
May 16, 2023
AI Summary
Q2 2023

Guidance Reaffirmed: Imperial Brands reported half-year results in line with previous guidance, maintaining confidence in delivering full-year performance as expected.

Market Share Improvement: The company achieved a 20 basis point increase in aggregate combustible tobacco market share across its top 5 markets, marking four consecutive half-year periods of stable or growing share.

Strong Pricing Offset Volume Decline: Robust pricing gains, particularly in the US and Europe, helped offset volume declines resulting from the unwinding of pandemic effects and the Russia exit.

NGP Growth in Europe: Next Generation Products (NGP) revenue in Europe grew 35%, driven by new product launches, though NGP remains in investment mode with increased losses as planned.

Margins and Buyback: Like-for-like profit margin improved by 30 basis points, and the GBP 1 billion share buyback is on track for completion by the end of September.

Volume Headwinds Easing: Management expects volume declines to moderate in the second half as comparators normalize and tailwinds from pricing and NGP launches take effect.

Dividend Increase: A 1.5% increase in the dividend has been announced, reflecting continued focus on shareholder returns.

Key Financials
Aggregate combustible market share (Top 5 markets)
Up 20 basis points
NGP (Next Generation Products) revenue growth (Europe)
Up 35%
Profit margin
Up 30 basis points (like-for-like)
US cigarette pricing
Up 9%
AAACE region pricing (excluding Russia)
Up 12%
US cigarette volume
Up 1%
US total tobacco volume
Down 3%
Cigar net revenue per stick (vs. cigarette)
2.6x that of a cigarette
Operating margin (Tobacco, ex-Russia)
Up 30 basis points
Adjusted operating profit (ex-Russia, constant currency)
Up 1.2%
Effective tax rate
22.4%
Operating cash conversion (12 months)
77%
Leverage
2.4x
Dividend
Up 1.5%
Share buyback
GBP 1 billion
Constant currency tobacco net revenue (ex-Russia)
Flat
Foreign exchange translation impact
3% to 4% tailwind (expected in full year)
Earnings Call Recording
Other Earnings Calls
2023
2021

Management

Mr. Stefan Bomhard Ph.D.
CEO & Director
No Bio Available
Mr. Lukas Jean-Baptiste Paravicini
CFO & Director
No Bio Available
Mr. Peter Durman
Investor Relations Director
No Bio Available
Mr. Kevin Michael Massie
General Counsel
No Bio Available
Mr. Alex Parsons
Director of Corporate Communications
No Bio Available
Martin Goodall
Head of Sales
No Bio Available
Ms. Alison Clarke
Chief People & Culture Officer
No Bio Available
Christopher Street
Head of Grocery and Key Accounts
No Bio Available
Mr. Ales Struminsky
President of Europe Region
No Bio Available
Surinder Sond
Group Head of Sustainability
No Bio Available

Contacts

Address
BRISTOL
121 Winterstoke Road
Contacts
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