Business highlights for Imperial Brands ($IMB (+1.01%) )
Market share gains:
In the five prioritized markets, an aggregated market share increase of 6 basis points was achieved, which is above the strategic target.
Price mix:
A price mix of 5.9% in the tobacco segment compensated for volume declines.
Growth in Next Generation Products (NGP):
Net sales increased by 15.4%, with growth in all three categories. Reported NGP sales increased by 14.7%.
Logista:
Strong results in the tobacco segment, but impacted by performance in the long-distance transportation segment.
Earnings per share (EPS):
Both adjusted and reported EPS increased by 6.0% and 0.7% respectively, supported by a further reduction in the number of shares.
Free cash flow:
A 12-month free cash flow of £2.4bn with a cash conversion of 99%.
Capital returns:
A £1.25bn share buyback program was launched and the interim dividend was increased.
Outlook:
The company is on track to achieve its full-year targets in line with guidance.
Financial overview (for the six months to March 31, 2025)
Key figure 2025 2024 Change
Net sales (£m) 14,604 15,064 -3.1 %
Tobacco & NGP Net sales (£m) 3,664 3,637 +0.7 %
Operating profit (£m) 1,456 1,494 -2.5 %
Adjusted operating profit (£m) 1,652 1,669 -1.0 %
Earnings per share (EPS) (p) 96.7 96.0 +0.7 %
Adjusted EPS (p) 123.9 120.2 +3.1 %
Net debt (£m) (10,471) (10,585) -
Dividend per share (p) 80.16 44.90 +78.5 %
Note: The 78.5% dividend increase includes a 4.5% underlying increase and an additional payment of 33.24 pence due to the change in dividend payments announced in October 2024.
Strategic progress
Market share development:
Growth in the USA (+10 basis points), Germany (+65 basis points) and Australia (+5 basis points) compensated for declines in the UK (-70 basis points) and Spain (-90 basis points).
NGP growth:
The company recorded increases in market share and net sales in all three NGP categories. Particularly noteworthy is the strong growth in Europe and the USA, which more than compensated for temporary challenges in the AAACE region.
Modern Oral products:
The "Zone" product line was successfully launched in the USA and contributed to further market share gains.
Financial stability:
Operating performance leads to consistent financial results and strong cash flows, enabling both investment in growth initiatives and increased capital returns to shareholders.
Future prospects:
Despite an uncertain global economic environment, the company remains on track to achieve its full-year targets, supported by tobacco price increases already implemented in the first half of the year and continued momentum in the NGP segment.
Note on today's share price performance:
CEO Stephan Bomhard, who took the helm in 2020, is retiring. The share price is therefore currently falling.