In This Article:
-
Revenue Growth: Up 3.2%, driven by improvements in both tobacco and NGP businesses.
-
Earnings Per Share (EPS): Increased by 6% due to growth in adjusted operating profit and share buyback programs.
-
Dividend Increase: Up 4.5% on an underlying basis; interim dividend increased by almost 79% due to rephasing.
-
Market Share Gains: 6 basis points gain in top five markets, with a notable 65 basis points gain in Germany.
-
Adjusted Operating Profit Growth: Increased by 1.8%, supported by strong pricing and reduced losses in NGP.
-
Free Cash Flow: GBP2.4 billion on a 12-month basis.
-
Leverage: At 2.4 times, within target range.
-
Tobacco Revenue Growth: Driven by strong pricing, offsetting volume declines.
-
US Price Mix Increase: 10.1%, driven by pricing in cigarette and mass market cigar portfolios.
-
Adjusted Effective Tax Rate: 23.5%, in line with full-year guidance.
-
Share Buyback Program: GBP1.25 billion, a 14% increase over the previous year.
-
NGP Revenue Growth: Continued growth across all three categories, with market share gains.
-
Heated Tobacco Market Share in Italy: Reached 3.3% in the first half.
Release Date: May 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
-
Imperial Brands PLC (IMBBF) reported strong top-line growth of 3.2%, driven by improvements in both tobacco and next-generation products (NGP).
-
The company achieved a market share gain of 65 basis points in Germany, marking its first significant gain in this market in over a decade.
-
Earnings per share increased by 6%, supported by buyback programs and strong operating profit growth.
-
The interim dividend increased by almost 79%, reflecting the company's commitment to returning capital to shareholders.
-
Imperial Brands PLC (IMBBF) is on track to deliver its full-year guidance, with consistent delivery against key metrics for the eighth consecutive half-year period.
Negative Points
-
The global economic outlook has become more uncertain, posing potential challenges for future performance.
-
Tobacco volume declines were noted, with some markets experiencing elevated declines, such as the US.
-
The company faces competitive pressures in certain markets, leading to strategic pricing actions that resulted in market share losses in the UK and Spain.
-
Foreign exchange rates are expected to be a headwind, impacting net revenue and operating profit.
-
The departure of key executives, including the CEO, raises concerns about continuity and potential risks in executing the company's strategy.