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.
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