Imperial Brands to increase its tobacco market share in its main five markets
Imperial Brands (LON:IMB) confirmed on Tuesday that the company made a “good start” to 2021 as the manufacturer of Gauloises and Winston cigarettes is planning to benefit from an increase in tobacco prices and reduced losses in vaping.
The FTSE 100 company also said it has begun to increase its tobacco market share in its main five markets with gains in America, the UK and Spain outweighing declines in Australia and Germany.
Imperial Brand’s new CEO Stefan Bomhard outlined a five-year plan that directs investment onto the key five markets that provide 72% of its profits.
The cigarette maker will also focus on tobacco-heating products in Europe and e-cigarettes in America, aiming to rebalance losses from its previously more focused approach.
Imperial reaffirmed its forecasted low-to-mid single digit growth in organic adjusted operating profit growth for the year, saying that its tobacco sales matched its expectations.
In the first half of the coming financial year, the FTSE 100 company is predicting its revenue will grow by 1% on an organic, constant currency basis, on account of increased tobacco prices and raised next-generation product (NGP) revenue growth. It is also expecting increased profits from its logistics operations in Europe, Logista.
Rival brand British American Tobacco has said it will channel more resources to NGP-type products after seeing 3m more people use its e-cigarette, tobacco heating and oral nicotine products during the pandemic in 2020.