Imperial Brands: Troubling Read-Across From Peers' Q4 Results
(Preview) Company Update (IMB LN) (Neutral)
Summary
Imperial Brands had only reported results up to September, and will not report again until May - but its peers have released Q4 results.
The read-across is worrying. Cigarette industry volume fell by 8% or more in 3 of Imperial Brands' top-5 markets in 2022.
Competitors have continued to dominate Reduced Risk Products categories, even where IMB has launched its own offerings.
Altria and British American Tobacco are deleveraging, signalling pessimism ahead; Philip Morris is preparing for its U.S. expansion.
The stock has a 7.7x P/E and 7.0% Dividend Yield, but Altria’s Divided Yield is higher and BAT’s P/E is similar. Avoid.
Introduction
Imperial Brands PLC ("IMB") last reported FY22 results (ending September 2022) in November, and is not scheduled to release another set of results until May 2023. However, with Japan Tobacco having reported their Q4 results on Wednesday (14 February), we now have 2022 read-across from all four other major Tobacco companies.
Cigarette industry volume fe…