Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Ecigarettes and heated tobacco light up Imperial Brands shares

Stock Markets May 17, 2022 04:40AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. FILE PHOTO: Packs of Gauloises cigarettes are on display in a tobacco shop in Vienna, Austria, May 12, 2017. REUTERS/Leonhard Foeger

By Richa Naidu

LONDON (Reuters) -Imperial Brands is on track to meet its full-year goals helped by strong sales of ecigarettes and heated tobacco in Europe, it said on Tuesday, boosting its shares to a more than two-year high.

Shares of the maker of Winston cigarettes and Backwoods cigars were up nearly 7% in morning trade, the second-best performance on the STOXX Europe 600 EUR price index.

Investors seem "relieved that the firm is on track to hit its full year guidance figures, as it proceeds in its five year strategy to shift to tobacco alternatives," Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown (LON:HRGV), said.

After years of slow growth and market share losses, Imperial CEO Stefan Bomhard laid out a turnaround plan in 2021 focused on its five top markets and expanding next-generation products (NGP) deemed less harmful to health. Together, the United States, Britain, Germany, Spain and Australia account for over 70% of Imperial's revenue.

Imperial rival Philip Morris International (NYSE:PM)'s $16 billion bid last week for smaller rival Swedish Match highlighted the urgency with which cigarette makers are trying to tap new and potentially less harmful alternatives.

Sales of Imperial's next generation brands, which include Pulze heated tobacco and blu e-cigarettes, were up 8.7% to 101 million pounds ($126 million), driven by demand in Europe. In November, the company reported a more than 50% reduction in losses in the business.

Imperial also said the terms of its recent agreement to exit Russia did not include a clause allowing it to buy back its business there in future, as Western companies rush to leave the country following its invasion of Ukraine.

Imperial had said in April "investors based in Russia" were buying its business there, which contributed about 2% to annual net sales when combined with Ukraine.

During an earnings call on Tuesday, executives said the transaction was closed and there's "absolutely no clause of buyback in there".

On Monday, Renault (EPA:RENA) said it would sell its majority stake in carmaker Avtovaz to a Russian science institute reportedly for just one rouble with a six-year option to buy it back, leaving the door open for the French carmaker's return.

Imperial reported on Tuesday adjusted net revenue of about 3.5 billion pounds, up 0.3% in constant currencies, for the six months ended March 31. Adjusted earnings per share rose to 113 pence per share from 107 pence a share last year.

($1 = 0.8063 pounds)

Ecigarettes and heated tobacco light up Imperial Brands shares

Related Articles

Asian Stocks Up, Following Wall Street Gains
Asian Stocks Up, Following Wall Street Gains By - Jun 26, 2022 1

By Zhang Mengying – Asia Pacific stocks were up on Monday morning after Wall Street rebounded strongly at the end of last week despite fears of prolonged inflation...

Dow Futures Trade Lower After Positive Week
Dow Futures Trade Lower After Positive Week By - Jun 26, 2022 9

By Oliver Gray - U.S. stock futures were trading lower during Sunday's evening deals, easing from a major rebound last week as investors monitored growing recession...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
Sign up with Email