- Imperial Brands’ adjusted operating profit was reported at £3.91 billion, marking a 0.6% year-over-year increase, in line with estimates.
- Distribution net sales rose to £1.50 billion, surpassing estimates of £1.48 billion, reflecting a 2.5% year-over-year growth.
- Europe net sales increased by 3.9% year-over-year to £3.37 billion, exceeding expectations of £3.33 billion, with tobacco volume down 3.7% to 86.6 billion SE.
- Americas tobacco volume saw a decline of 7.7% year-over-year, reaching 19.1 billion SE, slightly below the estimated 19.13 billion SE.
- Africa, Asia, Australasia, and Central & Eastern Europe tobacco volume decreased 3.5% year-over-year to 84.3 billion SE, but exceeded the estimate of 82.68 billion SE.
- Americas net sales increased by 0.9% to £2.84 billion, aligning closely with the £2.81 billion estimate.
- The region of Africa, Asia, Australasia, and Central & Eastern Europe saw a slight decline in net sales to £1.96 billion, missing the estimate of £1.91 billion.
- Tobacco & NGP adjusted operating profit grew marginally by 0.1% to £3.59 billion, hitting the estimate of £3.58 billion.
- Europe’s adjusted operating profit saw a 4% increase to £1.54 billion, surpassing the £1.52 billion estimate.
- The Americas’ adjusted operating profit fell by 1.8% to £1.24 billion, slightly under its estimate of £1.25 billion.
- Adjusted operating profit in Africa, Asia, Australasia, and Central & Eastern Europe was slightly lower at £811 million compared to the £819.4 million estimate, marking a 3.9% decrease year-over-year.
- Tobacco and NGP net revenue increased by 1.8% year-over-year to £8.16 billion, exceeding the £8.05 billion estimate.
- The company’s operating profit surged 4.5% year-over-year to £3.55 billion, close to the estimate of £3.56 billion.
- The dividend per share was reported at 153.42 pence, higher than the previous year’s 146.82 pence.
- The final dividend per share was 54.26 pence.
- Net debt decreased by 1.2% year-over-year to £8.34 billion, below the estimated £8.4 billion.
- Adjusted net debt fell 3.6% year-over-year to £7.74 billion, better than the £8.12 billion expected.
- Adjusted basic earnings per share rose to 297.0 pence from 278.8 pence a year earlier, topping the estimate of 285.2 pence.
- The company remains on track for five-year capital returns of around £10 billion, with a share buyback of £1.25 billion underway for FY25.
- The firm expects tobacco and NGP net revenue growth in low single digits at constant currency, with Group adjusted operating profit growing towards the middle of the mid-single-digit range in the next year.
- Performance is expected to be stronger in the year’s second half, with initial low single-digit growth in Group adjusted operating profit at constant currency.
- Earnings per share are projected to grow at least high single digits for the full year at constant currency, aided by the buyback and offset by higher finance and tax costs.
- The current market recommendation includes 9 buys and 3 holds, with no sells.
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A look at Imperial Brands Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 5 | |
| Growth | 4 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.6 |
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
Analysts at Smartkarma have assessed Imperial Brands PLC’s long-term outlook using their Smart Scores system. The company has received varying scores across different factors, painting a mixed picture of its future prospects. While Imperial Brands scored high in Dividend and Momentum, indicating strong potential in these areas, its scores for Value and Resilience were lower. This suggests that the company may face challenges in terms of value and resilience over the long term.
Imperial Brands PLC, a consumer goods company known for its tobacco products, received a solid rating in Dividend and Momentum from Smartkarma. However, its Value and Resilience scores were less impressive. This assessment highlights the importance of considering multiple factors when evaluating the potential of an investment. Investors may want to closely monitor how Imperial Brands navigates the challenges identified in the Smart Scores analysis to make informed decisions about the company’s future performance.
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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