Imperial Brands Shares Spiked Higher, Then Fell on Annual Results

The Imperial Brands PLC (LON: IMB) share price spiked higher, then later fell after announcing the final results for its financial year ended on 30 September 2023. The company achieved accelerated growth in adjusted operating profit, aligning with its five-year strategic plan, a critical milestone. 

The company has witnessed a significant improvement in the performance of combustible tobacco, marked by a commendable 10 basis points increase in aggregate market share across our top five priority markets. Additionally, we have seen robust and widespread pricing gains. 

The traction in Imperial Brands’ next-generation products (NGP) has been remarkable, with a substantial 26% growth in net revenue. The momentum is evident across all NGP categories, specifically in Europe, where NGP revenue has surged by an impressive 40%.

Imperial Brands’ operational and financial successes have been underpinned by implementing new consumer capabilities, revised working methods, and a cultural shift within the organisation.

Notably, the firm’s employee engagement metrics have outperformed global benchmarks by 100 basis points, registering at an impressive 74%.

The company’s commitment to enhancing shareholder value is evident through a 4.0% increase in dividends and a 10% rise in share buybacks. In total, the returns to shareholders for the fiscal year 2024 amount to £2.4 billion, which equates to approximately 15% of our total market value.

The company generated revenues worth £32,475 million, a slight 0.2% decline from last year’s £32,551 million. The firm’s operating profit rose 26.8% from £2,683 million to £3,402 million. The company’s earnings per share surged 52.1% to 252.4p, from 165.9p in the previous year. 

Stefan Bomhard, Imperial Brands CEO, said: “Three years into Imperial's transformation, our investments in consumer capabilities, changes to the way we work, and a new performance culture are translating into stronger, more sustainable operational and financial outcomes. In combustible tobacco, improving brand equity and investment in our salesforce capabilities has led to the third consecutive year of stable or growing aggregate market share in the five priority markets, which account for 70% of our operating profit. At the same time, we have offset structural volume declines with strong pricing in all key markets.”

Imperial Brands (IMB) share price. 

The Imperial Brands share price spiked higher, then fell after its final annual results were released.