On November 15, 2022, Imperial Brands Plc (formerly known as Imperial Tobacco Group), the fourth-largest tobacco company, released their annual report for the year ending on September 30, 2022. The following are the key points compiled by 2FIRSTS.
Photo source: Imperial Tobacco official website.
As of September 30, 2021, Imperial Brands reported a net revenue of £32.791 billion for the fiscal year 2022, representing a 0.7% decline compared to fiscal year 2021's revenue of £32.551 billion. The company also reported a revenue of £31.46 billion for 2022, reflecting a 14.7% YoY decline from 2021's revenue of £26.83 billion. The decline was attributed to costs related to the company's exit from the Russian and related markets (£399 million) and the disposal of its premium cigar division's non-recurring earnings (£281 million). The company's market share in the US cigarette market increased by 90 basis points to 10.1%, registering its fourth consecutive year of growth. YOY, adjusted operating profits in the Americas region increased by 5.8%. The five largest heated tobacco markets registered a combined 35 basis point increase in market share, while nicotine pouches performed significantly well in Sweden, Norway, and Austria. The company's NGP portfolio also exhibited strong performance in Europe, recording a 34.2% YoY net revenue increase. In contrast, Europe's adjusted operating profit fell by 5.2% when calculated with a fixed exchange rate. The UK market shrank by 11%, driven by the surge in illegal trade as borders reopened. The African market continued to perform exceptionally well, recording 3% increases in both market share and revenue. The company's Pulze and iD heated tobacco devices generated significant interest from trade partners and consumers during trial sales in the Czech Republic and Greece in 2021. As of 2022 and driven by growing demand, both products are now also available in Italy, Portugal, and Hungary. The company expects high growth potential in the Italian market, the largest heated tobacco market in Europe. Following successful trial launches in France, the company released a new e-cigarette device based on blu 2.0pod in the UK and added disposable products to the blu range. The company reported a 4.9% increase in adjusted earnings per share, driven by rising operating profits and declining interest costs. With a free cash flow of £2.6 billion for 2022, the company strengthened its balance sheet, enabling higher returns for shareholders. From October 2022, the company plans to return capital to shareholders through continuous share buybacks, with a promised initial buyback of £1 billion set to be completed by September 2023. Combining dividends and buybacks, the company expects to return over £2.3 billion in capital to shareholders in the next fiscal year. The company aims to accomplish its annual savings target of £150 million by the end of fiscal year 2023. Tobacco production dropped by 4.7% (excl. Russia: 1.2%).
Click here to download the original PDF of the 2022 Imperial Tobacco financial report.
Statement:
This article is for internal research and sharing within the industry only. It does not provide any investment or brand recommendations and should not be used as a basis for investment decisions. The data and analysis conclusions cited in this article have not been confirmed in writing by the company. Please refer to the company's official releases for all data.
This article is an original piece of work created by Shenzhen 2FIRSTS Technology Co., Ltd. The copyright and usage rights belong to the company and may not be reproduced or copied for commercial purposes without permission. Any unauthorized use will result in legal action taken by the company to protect its intellectual property.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
