Imperial Brands Achieves Revenue Growth Amid Strong NGP Performance

Imperial Brands PLC (ADR) ( (IMBBY) ) has released its Q4 earnings. Here is a breakdown of the information Imperial Brands PLC (ADR) presented to its investors.

Imperial Brands PLC is a global company engaged in the manufacturing and selling of tobacco and next-generation products (NGP), operating primarily in the tobacco industry with a focus on expanding its market presence in key regions through strategic initiatives and product innovation.

Imperial Brands reported a 4.6% increase in net revenue driven by its tobacco and next-generation product segments. Market share gains were noted in four of its five priority markets, with particularly strong growth in NGP net revenue up 26%. The company also displayed robust cash generation, with a free cash flow of £2.4 billion, and is actively pursuing capital returns, including a £1.25 billion share buyback.

Key financial metrics highlighted include a 10.9% increase in adjusted earnings per share, driven by profit growth and a reduction in share count, alongside a reported earnings per share increase of 19.1%. The company maintained strong tobacco pricing across all key markets, contributing to its financial performance despite a decline in tobacco volumes by 4%. The company continues to invest in new product launches, particularly in the NGP segment, which saw reduced losses and improved gross margins.

Looking forward, Imperial Brands is preparing for the final year of its current strategic plan, with expectations of low single-digit growth in tobacco and NGP net revenue. The company is focused on delivering mid-single-digit growth in group adjusted operating profit and aims for high-single-digit earnings per share growth. Continued investment in NGPs is expected to drive double-digit net revenue growth, while maintaining its commitment to shareholder returns and progressing towards a sustainable business model.