• Imperial Brands reported an adjusted operating profit of GBP1.67 billion, marking a 2.7% decrease year-over-year. This met analyst estimates.
• The company’s net revenue for Tobacco and Next Generation Products (NGP) was GBP3.64 billion, a 0.7% decrease compared to the previous year. This slightly exceeded estimates of GBP3.56 billion.
• Despite the slight NGR decrease, revenues for Tobacco and NGP showed a 2.8% increase on a constant currency basis.
• Imperial Brands reported an operating profit of GBP1.49 billion, a 2.6% decrease year-over-year, subtly below the expected GBP1.52 billion.
• The interim dividend per share announced by the company stands at 44.90p.
• Company reported an increased net debt of GBP10.59 billion with a 3.4% annual increase.
• Adjusted EPS stands at 120.2p, up from 118.5p year-over-year, this is slightly more than the estimated 118.8p.
• The company indicates a ‘strong’ increase in tobacco pricing by 8.6% to offset volume declines.
• The ongoing £1.1 billion share buyback programme is noted as being on track to complete as planned.
• Imperial Brands predict a low-single-digit constant currency tobacco and NGP net revenue growth for the full year.
• The company expects constant currency adjusted operating profit to grow close to the middle of its mid-single digit range.
• The EPS growth is predicted to benefit additionally from the continued reduction in share count.
• Imperial Brands reiterated its intent to return at least £2.4 billion to shareholders in FY24.
• With regards to stock rating, the company has received 9 buys, 5 holds, and 0 sells.
A look at Imperial Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Imperial Brands PLC, a consumer goods company, has received mixed Smart Scores indicating its overall outlook. While the company scored highest in Dividend at 5 and Momentum at 4, Value, Growth, and Resilience received scores of 2, 3, and 2 respectively. These scores suggest a strong performance in terms of dividend payouts and market momentum, but potential concerns in terms of value, growth, and resilience for the company.
Imperial Brands PLC, known for its range of tobacco products and e-cigarettes, operates globally and serves a wide customer base. With a strong focus on dividends and positive market momentum, investors may find it appealing for income generation. However, considering the lower scores in value, growth, and resilience, caution is advised for those looking for long-term growth potential and stability in their investments.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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