- On track to meet guidance
- Share buyback in progress
- New product revenue growing
Shares in Imperial Brands (IMB) were flat in morning trading at £17.33 as the tobacco and next-generation product maker said it was ‘on track’ to meet half year and full year guidance.
GUIDANCE MAINTAINED
The firm said strong tobacco pricing was ‘supporting financial delivery’, with growth in first-half group adjusted operating profit expected to be in low single digits on a constant currency basis.
First-half net revenue from next-generation products is expected to grow in the mid to high teens as the company builds scale and launches new ranges.
Imperial Brands now has a presence in more than 20 European markets and the US. In the first half, the company launched new single-use products under the blu brand, including new iSenzia non-tobacco heat sticks and the Zone range of pouches.
As of 31 March 2024, the company had completed £604 million of its £1.1 billion share buyback programme for this year representing approximately 3.7% of the share capital as of 1 October 2023. The buyback is on track to complete no later than 29 October.
Full interim results for the six months ending 31 March will be released on 15 May.
EXPERT VIEW
The past year hasn't been a particularly happy one for the company’s shareholders even though Imperial Brands remains committed to capital returns and a progressive dividend.
Russ Mould, investment director at AJ Bell said: ‘Shares in Imperial Brands are down by just under 10% in the past 12 months, as regulatory pressure refuses to abate.
‘After intervention on advertising and packaging for traditional tobacco products, vapes are now in regulators’ (and politicians’) sights while New Zealand and the UK are among the countries to float the idea of a ban on tobacco sales to those below a certain age threshold, in an attempt to get their nations to kick the habit altogether.’
DISCLAIMER: Financial services company AJ Bell referenced in this article owns Shares magazine. The author of this article (Sabuhi Gard) and the editor (Ian Conway) own shares in AJ Bell.
