Imperial Tobacco 2024 Annual Report: New Tobacco Business Grows 26.4% and Global Market Share Increases

Imperial Tobacco 2024 Annual Report: New Tobacco Business Grows 26.4% and Global Market Share Increases

Imperial Tobacco released its 2024 annual report and financial statements and announced the 2025 annual general meeting notice. In 2024, its tobacco and next generation products (NGP) net income increased, with tobacco and NGP net income of 8.2 billion pounds, of which NGP net income was 329 million pounds.

Recently, Imperial Tobacco (Imperial Brands PLC, hereinafter referred to as "IMB") released its 2024 annual report and financial statements and announced the 2025 annual general meeting notice.

Net revenue from tobacco and next generation products (NGP, i.e. new tobacco) increased, with net revenue from tobacco and NGP of £8.2 billion, of which NGP net revenue was £329 million; IMB achieved market share growth in five priority markets; free cash flow of £2.4 billion was generated in fiscal year 24, and IMB promised to return £2.8 billion of capital to shareholders in fiscal year 25; the company reported a 4.5% increase in group operating profit to £3.554 billion, with net revenue from tobacco and NGP increasing by 4.6% at constant exchange rates, of which tobacco business increased by 3.8% and NGP business increased by 26.4%

European Market

The company's performance in Europe was driven by strong combustible pricing, improved sales decline rate and growth in NGP net revenue. In Europe, NGP's net revenue increased by 20.5% to £260 million, with growth of 18.3% in Germany, 37.9% in the UK and 26.6% in Spain. Among them, IMB launched the disposable e-cigarette brand "blu" in the UK, France and Spain, and launched the cartridge-based "blu bar" kit in France and the UK before the end of the year; in the field of heated tobacco, IMB introduced iSenzia tea-based heated tobacco to Italy and Greece; in the field of modern oral nicotine, IMB continued to meet consumers' changing preferences by launching ZoneX and Skruf Modern in Norway.

Americas

NGP's net revenue increased by 29.4% to £43 million, and its growth was due to the successful launch of IMB's modern oral brand Zone.

Africa, Asia, Australia and Central and Eastern Europe

NGP net revenue increased by 136.4%, with tobacco and NGP net revenue increasing by 3.3% at constant exchange rates and a 6% tobacco price mix offsetting a 3.5% volume decline. Sales in Australia, the region's top market, achieved a solid profit performance for the fifth consecutive year and further increased market share; in the Central and Eastern Europe (CEE) market cluster, the combustible and NGP portfolios performed well. In addition, due to the experience of the Czech Republic market and the launch of the 1,000-puff blu bar e-cigarette product in Poland, Polish NGP net revenue doubled during the period; in heated tobacco products, the launch of tea-based heating sticks iSenzia in the Czech Republic and Poland accelerated performance.

In terms of leadership, the company's board and committees have undergone changes, including the appointment of new non-executive directors and the retirement of board members.

IMB is also committed to reducing carbon emissions, with direct carbon emissions down 69% since the 2017 base year, with a goal of achieving net zero emissions by 2040.

The company's CEO Stefan Bomhard said,

"In the coming year, at constant exchange rates, we expect tobacco and NGP net revenue to achieve low single-digit growth, and the group's adjusted operating profit will be close to the middle of the mid-single-digit range. This will benefit from the continued growth in profits in our combustible tobacco business and further reductions in operating losses in the NGP product portfolio."

"Since 2020, our NGP net revenue has increased by 64% at actual exchange rates. NGP currently accounts for 4% of tobacco and NGP net revenue. In 2024, our NGP net revenue will increase in three regions around the world and in all categories. The improvement in performance in the United States is due to the launch of our new Zone oral nicotine pouch. In Europe, the growth is mainly due to our updated e-cigarette product portfolio, including the new disposable blu bar and rechargeable blu bar set. At AAACE, we are building consumer loyalty with our heated products, including our new iSenzia tea-based bars."