Imperial: Trading Update

(October 5, 2023) Imperial Brands confirms that it is on track to deliver FY23 guidance1 and announces further £1.1Bn share buyback (~8% of share capital). Imperial repurchased 52.1Mn shares (~5.5% of share capital, £1.0Bn in total) in FY23. Key highlights from the announcement: - Single-digit tobacco segment revenue growth and...

PMI: Board Appointment

Philip Morris International (PMI) appointed Victoria Harker, an experienced US public-company CFO, to its Board of Directors (effective January 1, 2024)1. This appointment is important & meaningful. In our recent "PMI: Not All Roses" write-up, we highlighted financial planning & reporting issues as a major buy-side concern for the PMI shares. Thanks to...

PMI: Not All Roses

Sell-side analysts believe that Philip Morris International (PMI)'s healthy business fundamentals and encouraging growth outlook aren't yet reflected in the share price. The average analyst target for PMI is around $114 - implying a 20% upside. Although the sell-side is pretty convinced, PMI share price struggles to break out to...

Largest Tobacco Companies: Revenue

Methodology Publicly traded companies outside China. Fully or predominantly tobacco/nicotine business. Tobacco/nicotine distributors & retailers are excluded. Publicly traded affiliates of PMI and BAT (i.e. majority stake ownership) are excluded*. Publicly traded companies, in which PMI and BAT hold a minority stake, are included**. Ranked by last reported fiscal year...

Largest Tobacco Companies: Market Cap

Methodology Publicly traded companies outside China. Fully or predominantly tobacco/nicotine business. Tobacco/nicotine distributors & retailers are excluded. Publicly traded affiliates of PMI and BAT (i.e. majority stake ownership) are excluded. Publicly traded companies, in which PMI and BAT hold a minority stake, are included. Ranked by Market Capitalization Notes: (1)...

BAT: H1 2023 Results

Top-line1 - Revenue: £13.44Bn (vs. £13.3Bn expected) - Revenue up +2.8% (New Categories up +27.9%) - Revenue from New Categories: 12.3% of total Bottom-line - Adj. Operating Profit: £6.02Bn (vs. £5.9Bn exp.) - Adj. Operating Margin: 44.8% (vs. 44.4% exp.) - Contribution from New Categories: -£12Mn (break-even in sight) –...

PMI: Q2 2023 Results

Key Business Metrics1 Revenue: up +10.5% to $8.97Bn (expected $8.7Bn) Adjusted diluted EPS: up +16.9% to $1.60 (expected $1.48) Total volume: up +3.3% to 188.4Bn (HnB volume: +26.6% to 31.4Bn; cigarette volume: -0.4% to 157Bn) Smoke-free revenue: $3.2Bn => 35.4% of total revenue (2025 target: 50%) Key Highlights - Combustibles:...

BAT: Trading Update

Key Highlights - On track to meet FY23 guidance - Disappointing US combustibles performance: but, the volume share has grown sequentially since the start of the year - Underwhelming start to 2023 by glo: but, the recent momentum is more encouraging - 900k more non-combustible consumers in Q1: on track...

Imperial Brands: H1 2023 Results

Top-line & Bottom-line results1 Adjusted: at constant currencies, excluding Russia - Volume: -6.8% (including the Russia exit, -12.7%) - Robust combustible pricing: +9.3% (partially offset by -2.5% in product mix, driven primarily by adverse product mix in the USA; total price/mix: +6.8%) - Revenue: +0.6% (NGP revenue: +19.8%, driven by...

BAT: Business Update

New CEO The Board announces that1 - the current CEO is stepping down from the Board of Directors with immediate effect - the current CFO ("Group Finance Director") is appointed as the new CEO. Our takeaway We highlighted many times before that BAT is poorly managed and needs a ton...

Japan Tobacco: Q1 2023 Results

Top-line & Bottom-line results1 Adjusted, at constant currencies; Tobacco only - excluding Pharmaceuticals & Processed Food Revenue +6.3% (positive pricing contributions) Operating profit +4.6% (lower than top-line growth due to the higher supply chain costs) Total Volume +1.3% (combustible volume +1.2%; RRP volume +3%) Ploom X (heated tobacco) Update -...

PMI: Q1 2023 Results

Bottom-line results & Volume progression1 Revenue: up +3.2% to $8.02Bn in Q1 2023 (expected $8.11Bn) Adjusted diluted EPS: down -4.4% to $1.38 in Q1 2023 (expected $1.34) Total volume: down -1.1% to 171.1Bn units in Q1 2023 (HnB volume: +10.4% to 27.4Bn; +16% adj.) Smoke-free revenue: $2.8Bn => 34.9% of...

Ispire Technology: IPO

Ispire first downsized its proposed IPO by 50% to $21Mn (3Mn shares x $7/share) in late-March. It further reduced its offering by 0.3Mn shares and went public on April 4, 2023 under the ticker ISPR1 - $19Mn raised by offering 2.7Mn shares at $7 - First day of trading: $7.01...

Vector Group: Q4 & FY22 Results

Great progress in transitioning Montego brand strategy from volume-based to income-based, resulting in profitability turnaround (recall: Montego is Vector’s largest brand since Q2 2022 and is the second largest discount brand in the USA) In Q3 2022, Vector sold 2.75Bn sticks and generated $378Mn revenue ($137.5/’000) and $88Mn operating income...

Japan Tobacco: FY22 Results

Top-line & Bottom-line results Adjusted, at constant currencies; Tobacco only - excluding Pharmaceuticals & Processed Food Core revenue: up +4.8% (RRP revenue: up +4.4%) Operating profit: up +8.2% Total volume: down -0.5% (combustibles: -0.7%, RRP +10.3%) Key Highlights - Re-defines its corporate purpose as: "Creating fulfilling moments. Creating a better...

KT&G: FY22 Results & Key Developments

In FY22, KT&G posts record earnings, largely on upbeat sales of heat-not-burn tobacco products in Korea & overseas1. Total cigarette and HnB volume reaches 101.5Bn (up +16.5%) and, consequently, KT&G moves above Altria to become world’s 5th largest tobacco company (ex-China). For the tobacco business only, excluding KGC (Korea Ginseng...

BAT: H2 & FY22 Results

Top-line & Bottom-line results Adjusted, at constant currencies Net revenue up +2.3% (New Category net revenue up +37%) Operating profit up +4.3%; operating margin +90 bps EPS up +5.8% Key Highlights New Categories (NC): - BAT now expects NC profitability in 2024, one year ahead of plan - NC revenue:...

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