Imperial Brands PLC

Imperial Brands Plc is a holding company which engages in the manufacture and sale of cigarettes, tobaccos, cigars, rolling papers, and tubes. It operates through the Tobacco and Next Generation Product (NGP) segments. The company was founded in 1636 and is headquartered in Bristol, the United Kingdom.

British cigarette maker Imperial Brands reported higher first-half operating profit on Wednesday, thanks to price hikes and growing demand for tobacco alternatives.

Imperial Brands' profit lifted by price hikes, demand for tobacco alternatives

The Imperial Brands PLC (LSE:IMB) trading update was "crashingly, boringly good" and management "seems to be getting the balance right", according to analysts.  In what was the tobacco giant's first trading report since November, investors were told that first-half operating profits are on track to grow by low single-digits, in line with previous guidance, while the second-half is expected to be underpinned by hikes to tobacco pricing it has made.

Imperial Brands making tobacco giant boring and great again, say analysts

Imperial Brands PLC (LSE:IMB), the tobacco company, said it is on track to deliver a ramp-up in both interim and full-year profits after it hiked its prices. First-half operating profit is expected to grow by a low single-digit before the group moves into the second half which is predicted to be more heavily weighted.

Imperial Brands boosts profits after hiking tobacco prices

Imperial Brands continues to expect operating profits for the year to be close to the middle of its mid-single digit range, with its first-half performance supported by strong tobacco pricing.and growth in new generation products.

Imperial Brands Says Outlook on Track

Shares in Imperial Brands PLC (LSE:IMB) have fallen around 15% since the start of last year, despite the dividend growth and share buybacks it has offered investors. Regulatory pressure has long been the bugbear of tobacco investors and the latest government interventions have been on the group's moves into vaping, with the UK and New Zealand also floating plans for a 'next generation' ban on tobacco sales that would prevent those below a certain age from ever being able to smoke.

Is Imperial Brands still puffing hard to meet targets for little reward?

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While other tobacco stocks have languished in recent months, Imperial Brands' stock has seen some uptick, driven by increased dividends and share buybacks. With profit growth expected to continue, its dividends can also keep growing, even with its 11% forward dividend yield. And market multiples are attractive too. However, its long-term growth prospects are uncertain due to a slow transition to next-generation products (NGPs). Nevertheless, for now, it looks good.

Imperial Brands: The 11.3% Forward Yield Is Attractive Despite Long-Term Risks

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Valuing tobacco stocks using conventional methods (e.g. P/E, P/FCF, EV/EBITDA) can lead to overly optimistic expectations due to the known challenges of the cigarette industry. The article discusses an alternative, scenario-based valuation approach. Its main advantages are its simplicity and the comprehensibility of the conclusions that can be drawn from it. The method is illustrated using the example of Imperial Brands stock, a U.K. tobacco company known for its weak market position and lack of a meaningful smoke-free portfolio.

Tobacco Stocks: Valuing Them Correctly Using Imperial Brands As A Case Study

Imperial Brands PLC (LSE:IMB) is a standout performer in the tobacco industry, according to RBC Capital Markets, stating on Friday that it “continues to be the only company in European Tobacco to offer both dividend growth and share buybacks”. This strategy has resonated positively in the current challenging market environment for Big Tobacco, with investors turning away from the sector due to ESG concerns.

Imperial Brands smokes BAT, but sector becoming a one-trick dividend pony - analyst

Imperial Brands' results showed again it is very good at selling cigarettes but maybe not next-generation products, says Jefferies. The full-year numbers were “decent” especially organic earnings growth of 3.9% and the 5% target for this year.

Imperial Brands 15% ‘actual' yield highlights growing risks - Jefferies

Imperial Brands PLC (LSE:IMB) reported strong growth in profits, on broadly unchanged revenue, with growth in traditional cigarette and next generation products (NGP). The owner of Golden Virginia and Richmond said in the year to September 30, revenue fell 0.2% to £32.48 billion from £32.55 billion the year before, while operating profit jumped 27% to £3.40 billion from £2.68 billion.

Imperial Brands profit jumps on flat revenue

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US inflation to set the tone alongside Land Securities and Imperial Brands: Tuesday preview

The jury remains out on Imperial Brand's move to distance from its legacy (and very profitable) tobacco operations. Shares are down by a fifth this year despite the Davidoff, West and Rizla owner throwing mountains of cash at shareholders through dividends and buybacks.

Imperial Brands facing the same questions as vapes scrutiny grows

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Effective bans on smoking, similar to that proposed by Rishi Sunak earlier this week, will be difficult to introduce in many countries, Barclays analysts have said. Under the proposed plans, those born before 2009 would be unable to ever legally purchase cigarettes in the UK - so essentially as they grow up, the smoking age grows with them.

Imperial Brands: Bans on smoking difficult to introduce - broker

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Imperial Brands PLC (LSE:IMB) has announced the appointment of Morgan Stanley (NYSE:MS) to source some £550 million worth of shares in the first tranche of its buyback scheme. Announced on Thursday, Imperial Brands has set sights on repurchasing £1.1 billion worth of its issued share capital.

Imperial Brands appoints Morgan Stanley for share buyback

Imperial Brands has seen net revenue growth resulting from favourable pricing. However, tobacco volumes have been declining. In particular, the decline in mass market cigar volumes has been impacting overall revenue.

Imperial Brands: Price Growth Encouraging, But Volume Pressures Remain

Imperial Brands launched a new £1.1 billion share buy-back as it said it was on track to deliver full-year guidance despite forex headwinds. However, there was no comment on plans announced by Prime Minister Rishi Sunak to crackdown on vapes and impose a lifetime ban on younger generations smoking.

Imperial Brands backs outlook, launches £1.1 billion buy-back

Shares of British American Tobacco and Imperial Brands fell after British Prime Minister Rishi Sunak hinted at introducing anti-smoking measures similar to those in New Zealand. Investors are concerned that stricter regulations could lead to an even faster decline in cigarette volumes, limiting the companies' leeway for price increases. The article estimates the impact of a loss of the UK market - an arguably pessimistic expectation - on both companies' sales, free cash flow and, consequently, dividend safety.

British American Tobacco And Imperial Brands: The Sunak Black Swan?

Tobacco multinational Imperial Brands PLC (LSE:IMB) is gearing up for its pre-close trading update on October 5 amid a drastically changing landscape in the contentious industry. Recent research from Barclays sees the cigarette industry declining 3% per annum on an earnings (before interest and tax) basis, though growth in NGPs (or next-generation products, comprising vapes, heated products and other cigarette alternatives) could balance this out.

News for Imperial Brands PLC Stock (IMBBY)