IMB unveiled a five-year transformation plan that would see it increase investments in its top five cigarette markets, bolster its sales force, and take a more “disciplined” investment approach with its fledgling vaping venture. Overall, the announcements have improved the group’s credibility, but the lack of upcoming catalysts slightly disappoint. Not to mention, the disappointment also around the lack of an immediate share buy-back. The re-rating vs. tobacco peers in not for now.
Companies: Imperial Brands PLC
Mixed feelings: the NGP beat should be welcome, as well as the transparency about FY21, but we believe that the decline in NGP investments should be a brake in the future and we are still concerned about the lower price/mix at IMB’s level.
Disappointing H1 driven by NGP. Reducing investments in this category was the company’s choice, but we believe it is a bad mid-term strategy. The dividend cut has finally shown increasing weaknesses vs. peers during the crisis.
Troubles remain during the CEO transition process, with FY20 guidance revised downwards, due mainly to the US vaping crackdown. With low visibility on future earnings, cash flow and return to shareholders, stay away from IMB for now.
Within this challenging year, the group reported a mixed set of FY19 results. While Tobacco remained resilient, the NGP disappointed as the category delivered lower than expected results, despite the group investing a lot in its development. It negatively weighed on operating profitability, which was actually -1.6% below consensus (but higher than our estimates). We see the more cautious guidance as more realistic, which is not a bad thing. The ambitions were previously too high on the NGP categ
The challenging NGP market in the USA and change in expectations of the results in Africa, Asia and Australia (AAA) has pushed IMB to warn on its next FY results. This is no major surprise, as we were already aware of the regularity issues in the US. While NGP products currently represent a small proportion of sales (between 5-10%), it is in this area that IMB focuses all its investments and sees its next growth driver.
The company posted strong H2 results with a better than expected operating margin. The results were reassuring and suggest that the company has a clear view about possible threats and opportunities in the troubled tobacco space and how to navigate round them.
The numbers are slightly better than expected. We believe that the divestment announcement will particularly please investors, as it represents a significant capital to be redeployed to maximise the company’s value.
Imperial Brands (IMB LN, BUY, T/P 5100p) announced a solid set of FY2017 results. Tobacco volume fell -4.1% less than the forecast -4.8%, total adjusted operating profit was in line with consensus at £3.8bn and adjusted EPS was 267p slightly below the 271p consensus estimate. Share momentum in priority markets drove H2 volumes.
FY update: tobacco’s net revenue was down 2.6% at constant currency (cons.-3.3%, H2: +0.1%) and +8.2% on a reported basis (FX: +10.8%) with volumes down 4.1% (cons. -4.8%, H2: -2.6%) and the price/mix +1.5% (in H2, industry volumes were down 4.5%).
Growth Brands’ volume rose by +5.5% and gained an 80bp market share.
By market and at constant FX, Growth Markets’ net revenue was flat at -0.2% (weaker H2 in Russia), whereas Return Markets recorded -4.5% (impacted by EU TPD and investments). The U
Imperial Brands (IMB LN, BUY, T/P 5100p) released a trading statement this morning, which confirmed market expectations of around £8½bn for full year sales revenue. The company is due to release preliminary FY2017 results on 7th November 2017.
Imperial Brands (IMB LN, BUY, T/P 5100p), whose flagship next generation product and e-cigarette brand is BLU, should receive some encouragement from today’s NHS Scotland release. NHS Scotland appears overall in favour of ecigarettes being used as a cessation product – i.e. an alternative to combustibles. NHS Scotland’s comments echo those recently made by Public Health England that e-cigarettes are up to 95% less harmful than combustibles.
Having presented at the Barclays Back to School Conference in Boston on 5th September, Imperial Brands’ (IMB LN, BUY, T/P 5100p) will update investors further on 28th September with a trading update ahead of its 30th September 2017 year-end. In our view, the core business is still robust, next generation products have momentum and key cash conversion metrics remain attractive.
Research Tree provides access to ongoing research coverage, media content and regulatory news on Imperial Brands PLC Sponsored ADR.
We currently have 0 research reports from 0
Sosandar’s FY21 results have been well-trailed with revenue growth of 35% to £12.2m and a reduction in EBITDA losses to £2.9m (PY: £7.7m). The accelerated growth seen in Q4’21 has continued into Q1’22, with sales increasing 256% YoY and the gross margin expanding 200bps QoQ. With restrictions easing, we envisage a continuation of growth in FY22 coupled with a reduction in EBITDA losses (breakeven in H2). May’s £5.8m (gross) ABB has provided the working capital to support a significant increase i
Companies: Sosandar Plc
A new partnership with Alshaya Group in the Middle East, building on Debenhams established store presence in the region, the launch of a new local Debenhams eCommerce platform and providing a new route to market for the Group’s existing portfolio of brands.
Companies: boohoo group Plc
Companies: Ted Baker PLC
Q2 results were roughly in line with expectations. With little surprise, the FY21 margin outlook was cut given the price uncertainties of the raw materials. This is the first bad signal for the sector.
Companies: Unilever PLC
Companies: Frontier Developments Plc
Despite the adverse effects of Covid lockdowns significantly impacting Q1 FY2021, Victoria has delivered record FY2021 revenues and adjusted EBITDA, respectively c.3% and c.6% ahead of expectations set by its June trading update. The outlook for revenue and margins in FY2022E is encouraging with the Group continuing to experience strong on-going demand in its key markets, having captured structural margin uplift from targeted productivity and operational initiatives. Whilst traditional lead indi
Companies: Victoria PLC
Under a new and experienced leadership team, BAR delivered several key milestones in Jun’21. The result is a scalable and efficient beauty brand specialist with enhanced operating disciplines to drive profitable future growth in what could be an exciting expansion phase. There was an inflection to sales growth and higher margins in H2 despite covid disruption. This is an exciting moment for BAR with 7 imminent brand relaunches, major DTC projects from Q2 onwards, and cash to deploy on accretive
Companies: Brand Architekts Group plc
Although renewable energy has been gaining increasing traction over the past decade as the costs of renewable energy generation and perhaps more importantly, energy storage have fallen, 2020 was a seminal year for transitional energy investors driven by governments seeking to “build back better” after COVID-19. The US has committed US$2.25trn largely focused on the energy transition while the EU has committed US$0.54trn with companies around the world including China committing to net zero targe
Companies: LAM FSJ TGP PRES JMAT CRPR NEXS VLX
Galliford Try has again demonstrated strong progress against its growth and recovery targets, with PBT set to come in “towards the upper end of analysts' current range [of forecasts]” – currently £9m-£11.2m. Management confirmed that all sites are progressing in line with its medium-term EBIT margin target of 2.5%
Companies: Galliford Try Holdings PLC
Catena Group (CTNA.L) to complete reverse takeover and be renamed Insig AI and is acquiring the remaining shares of Insight Capital Partners. Insight, which is based in the UK, is a data science and machine learning solutions company that provides bespoke web-based applications, advanced analytical tools and modern technology infrastructure to make machine learning accessible to investment professionals. Insight has developed five products specifically aimed at accelerating an asset manager's d
Companies: SWG LOGP G4M SDG MTL GTC KWS ARK ANCR EME
Companies: Accrol Group Holdings plc
Today’s H1 update makes positive reading. Since the AGM update, strong trading continued into May and June and the Group exits H1 with a strong global order book. Overall, 34% y/y sales growth / 6% LFL (vs H1-19) is a highly impressive outcome against the backdrop of UK lockdown 3.0 and ongoing CV19 related global shipping and supply chain delays. All this reflects favourably on the strategic progress under the new leadership team and supportive of the double-digit sales / margin recovery thesis
Companies: Portmeirion Group PLC
Mercedes-Benz presented its new electrification strategy, which entails accelerating the pace towards an EV-only future. While the 2030 target for full electrification has a caveat depending on a swift adoption of EVs across the globe, the plan presented appears quite sound and bold enough to keep M-B in the race for dominance in the premium EV space. All this while sticking to its financial targets presented last October.
Companies: Daimler AG
Boohoo Group plc has announced a solid set of results for the full year ended 28 February 2019, ahead of our forecasts which were revised higher in January. In recent years the boohoo group has transformed from a single branded e-commerce player into a scalable multi brand platform with proven ability to execute rapid growth. Its disruptive model, centred on a customer led proposition with strong social media engagement is enabling it to take market share from its competitors. The Group’s well-i
Boohoo Group has announced a solid start to FY20 in its Q1 trading statement released this morning. Revenue for the Group is up an impressive 39% YOY to £254.3m, ahead of ZC expectations (+32%) and market consensus (+35%), and against strong Q1 FY19 comparatives (+52%). There was growth across all brands and regions, with the Group continuing to take market share. This positive performance reflects the relevance and strength of the Group’s proposition, further evidenced by it topping the UK Hitw