Imperial Brands' profit lifted by price hikes, demand for tobacco alternatives
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 15 2024
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Source: reuters
- Higher Operating Profit: Imperial Brands reported increased first-half operating profit due to price hikes and rising demand for tobacco alternatives.
- Regulatory Hurdles: The tobacco industry faces challenges with the U.S. planning a ban on menthol cigarettes and the UK considering restrictions on cigarette sales to those under 15.
- Turnaround Plan: Imperial outlined a turnaround strategy in 2021 focusing on key markets and investing in next-generation products (NGP) to combat slow growth and market share losses.
- Financial Performance: Adjusted operating profit grew by 2.8% to 1.67 billion pounds, with sales of NGP brands increasing by 16.8%.
- Future Outlook: The company expects further improvement in profit growth, supporting a mid-single-digit percentage compound annual growth rate over the next two fiscal years.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
