(Il Sole 24 Ore Radiocor) – Milan, 19 November – Imperial Brands in the spotlight on the London Stock Exchange, thanks to annual results that exceeded expectations. The shares of the manufacturer of tobacco and substitute products rose 3% in the afternoon to 2,473 pence, with the best performance of the Ftse 100 index (-0.5%) and in second place among the components of the Stoxx Europe 600. Imperial closed the 2024 financial year (as of 30 September) with revenues marginally decreasing to 32.4 billion pounds (-0.2%), with operating profit growing by 4.5% to 3.5 billion, higher than expected and earnings per share of 300.7 pence (+19%). The dividend increased by 4.5% to 153.42 pence. Imperial said it had increased its market share through brand investments and sales force initiatives, “while achieving price increases.” The company also managed to improve the gross margin of the ‘next generation’ product segment, thanks to a 26% increase in revenues.
The London-based company confirmed its forecasts for the fiscal year 2025, specifying that “in line with previous years, performance will be focused on the second half of the year driven by the trend in fuel prices and investments Which means the group’s adjusted operating profit in the first half is expected to grow in the low single digits at constant currencies.”
Imperial Brands’ annual results are reassuring, say analysts at RBC Europe, noting that revenues from tobacco and new products such as vapes performed above expectations.
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(RADIOCOR) 19-11-24 15:58:20 (0503) 5 NNNN
Thank you for joining us today, Guest 1 and Guest 2. Our first question is for Guest 1. As the manufacturer of tobacco and substitute products, what does it mean for Imperial Brands to exceed expectations in their annual results reported on the London Stock Exchange? Can you expand on the strategies they implemented to achieve this growth, particularly in regards to their investments in brands and sales force initiatives?
Guest 1: Thank you for having me. It is certainly great news for Imperial Brands to report better-than-expected results, especially with the ongoing uncertainty in the market. One of the key factors that contributed to this growth was our focus on brand investments and sales force initiatives. We have been working hard to improve our brands’ visibility and appeal to consumers while also ensuring that our sales teams are well-equipped to reach and engage with them. This includes expanding our product offerings, enhancing our marketing efforts, and providing our sales force with the necessary training and resources to drive sales growth. Additionally, we have worked towards increasing our market share through strategic partnerships and acquisitions, which has also contributed to our overall performance.
Guest 2: Absolutely. I agree that brand investments and sales force initiatives play a significant role in Imperial Brands’ success. Another factor to consider is their pricing strategy, as they were able to achieve price increases while maintaining market share. This implies that they have effectively managed customer perceptions and demand for their products, which is a challenging feat in the highly competitive tobacco industry. Furthermore, the increase in gross margin for their ‘next generation’ product segment highlights their ability to adapt to changing consumer preferences and market dynamics. This speaks volumes about their strategic vision and adaptability as a company.
Moving on to our next section, can you both discuss Imperial Brands’ focus on the ‘next generation’ product segment? What are some of the challenges and opportunities they face in this area?
Guest 1: Sure. The ’next generation’ product segment refers to alternatives to traditional cigarettes such as vapes and heat-not-burn devices. One of the challenges for Imperial Brands in this area is the intense competition from other players in the market, especially those with stronger marketing budgets and wider distribution networks
