14 November 2023
If you are covering Imperial’s latest financial results, please find below a comment from Chris Beckett, head of equity research at Quilter Cheviot:
“Imperial announced a solid set of full year results this morning broadly matching expectations on all levels. Its guidance for next year was also as expected and management gave confidence in their ability to hit medium term targets.
“The business has also had a very successful period of cash generation, which has allowed them to reduce net debt and fund an increased dividend and a generous share buyback. Compared to the very low valuation this is a very positive update.
“Ultimately, for those investors without any ethical criteria, this cashflow generation and high shareholder returns remain the primary reason to hold the stock. Imperial is not as well placed in the transition to e-cigarettes or heated tobacco as Philip Morris or BAT. Indeed, while revenues in next generation products grew 26%, they remain immaterial to the total group.”
