Imperial Brands (IMB) H2 2024 earnings summary

Executive summary

• Delivered strong results in fiscal year 2024, meeting expectations with continued progress in the acceleration phase of the five-year plan and robust tobacco pricing driving net revenue growth.

• Achieved aggregate market share growth in five priority tobacco markets, with a notable turnaround in Germany and further share gains in the Americas.

• Next-generation products (NGP) saw broad-based growth in revenue and market share across all regions and categories, with NGP net revenue up 26.4%.

• Transformation efforts and a performance-based culture led to operational improvements, improved financial delivery, and enhanced shareholder returns.

Financial highlights

• Net revenue grew by 4.6% year-over-year to £8,378m, driven by strong performance in both tobacco and NGP.

• Adjusted operating profit increased by 4.6% to £3,911m, supported by share buybacks.

• Adjusted EPS rose 10.9% to 297.0p, reflecting profit growth and share count reduction.

• Free cash flow reached £2.4bn, with 100% operating cash conversion.

• FY24 dividend per share grew 4.5% to 153.4p; £1.25bn buyback committed for FY25.

Outlook and guidance

• FY25 guidance: low single-digit net revenue growth, double-digit NGP revenue growth, and adjusted operating profit growth near the middle of the mid-single-digit range.

• At least high single-digit EPS growth expected, with FX translation as a 1%-2% headwind and performance weighted to H2.

• Finance charge for FY25 expected at ~£430m; tax rate 23–24%; capex £300–350m; cash conversion 90–100%.