Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
  1. Homepage
  2. Equities
  3. United Kingdom
  4. London Stock Exchange
  5. Imperial Brands PLC
  6. News
  7. Summary
    IMB   GB0004544929


SummaryMost relevantAll NewsAnalyst Reco.Other languagesPress ReleasesOfficial PublicationsSector newsMarketScreener Strategies

BAT sticks to forecast as demand for tobacco alternatives rises

12/07/2021 | 04:18am EST
FILE PHOTO: Lucky Strike cigarettes are seen during manufacturing process in BAT Cigarette Factory in Bayreuth

(Reuters) -British American Tobacco said it sees 2021 as a "pivotal year" as it backed its full-year profit and sales forecasts on Tuesday buoyed by strong demand for its "new categories" products.

Its shares, down 3% this year, rose 1.75% to 2,671 pence in morning trading after the FTSE-listed company also flagged a possible share buyback.

The company said an additional 3.6 million customers used its "new categories" products - e-cigarette, tobacco heating and oral nicotine - in the year to end-September, bringing its total non-combustible user base to 17.1 million.

"2021 is the pivotal year in our transformation journey," CEO Jack Bowles said in a statement, highlighting that after years of losses, products from its new categories business would contribute to overall profits for the first time this year.

The maker of Lucky Strike cigarettes invested more than 346 million pounds ($459.56 million)in new categories in the first half of the year, which helped boost sales by more than 50%.

"We continued to accelerate these investments in the second half which has helped it make a sizeable contribution to revenue growth (this year)," Chief Marketing Officer Kingsley Wheaton told Reuters.

With increased marketing and distribution, BAT's Vuse e-cigarettes gained 6.9 percentage points in market share in 2021.

Its glo tobacco heating products grabbed an extra 4.5 percentage points in market share in their top markets in the year to end-September.

"After a number of years of disappointment, strong current year momentum continued to build (in the new categories business)," Jefferies analyst Owen Bennett said, adding that all in all it was a "net positive print".

BAT kept its full-year forecast for constant currency revenue growth above 5% and mid-single digit adjusted earnings per share growth in 2021, as it also expects to gain from selling higher priced cigarettes.

It raised its outlook for global tobacco industry volumes to "broadly flat" from down 1.5%. In the United States, it expects volumes to fall by around 5.5%.

The company also said at current valuation it recognises the "clear value" of a buyback, which Bennett said might result in an announcement at the end of this year.

($1 = 0.7529 pounds)

(Reporting by Siddharth Cavale in Bengaluru; Editing by Sriraj Kalluvila)

By Siddharth Cavale

© Reuters 2021
01/19IMPERIAL BRANDS PLC : Nomination
01/17ANALYST RECOMMENDATIONS : Admiral, Hiscox, National Grid, Qiagen, Unilever...
01/06Why TAAT Global Alternatives Inc could be a threat to the tobacco industry (TOBAF, PM, ..
2021IMPERIAL BRANDS : Annual Report and Accounts 2021
2021IMPERIAL BRANDS : awarded ‘A' score for action to address climate change
2021BAT sticks to forecast as demand for tobacco alternatives rises
2021Imperial Brands PLC Announces Steven Stanbrook Will Not Stand for Re-Election as Non-Ex..
2021IMPERIAL BRANDS PLC : Nomination
2021UK's FTSE 100 rises for fourth day as consumer stocks boost
2021IMPERIAL BRANDS PLC : Ex-dividend day for interim dividend
More news
Analyst Recommendations on IMPERIAL BRANDS PLC
More recommendations
Sales 2022 8 766 M 11 839 M 11 839 M
Net income 2022 2 022 M 2 731 M 2 731 M
Net Debt 2022 8 417 M 11 367 M 11 367 M
P/E ratio 2022 7,79x
Yield 2022 8,30%
Capitalization 16 336 M 22 078 M 22 063 M
EV / Sales 2022 2,82x
EV / Sales 2023 2,76x
Nbr of Employees 30 300
Free-Float -
Duration : Period :
Imperial Brands PLC Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends IMPERIAL BRANDS PLC
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 19
Last Close Price 1 726,50 GBX
Average target price 2 023,75 GBX
Spread / Average Target 17,2%
EPS Revisions
Managers and Directors
Stefan Bomhard Chief Executive Officer & Director
Lukas Jean-Baptiste Paravicini Chief Financial Officer & Director
Thérèse Marie Esperdy Non-Executive Chairman
Steven P. Stanbrook Independent Non-Executive Director
Simon Langelier Independent Non-Executive Director