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Financial Highlights: Revenue rose 4% to £7.0 billion. The Board is recommending a final dividend of 73.9 pence which brings the total dividend this year to 105.6 pence, up 11%. For the full year, the group spent £528 million on its share buyback programme, acquiring 21.9 million shares. Due to further deterioration in the Spanish economy and government austerity measures, the group said it would take a non-cash impairment charge of £1.2 billion during the year.
Full year results: Strong revenue growth across key strategic brands at Imperial Tobacco helped the group raise its annual dividend by 11% to 105.6 pence a share, boosting its pay-out ratio from earnings to 52.5%. Its four key brands, Davidoff, Gauloises Blondes, West and JPS, resulted in combined volume growth of 7% and net revenue growth of 13% while fine cut tobacco volumes remained stable. Strong results were seen in premium cigars growing volumes by 11% and revenues by 10%, with Scandinavian snus volumes up by 53%. Meanwhile, stick equivalent volumes declined 2.7% in the period due to "ongoing market weakness in Ukraine and Poland and compliance with international trade sanctions in Syria," the company said .The company's portfolio "provides significant opportunities for further growth," Chief Executive Officer Alison Cooper said in the release.
Company overview Imperial Tobacco is a leading international tobacco company, headquartered in Bristol, England. The group's core activity is the manufacture, marketing and sale of tobacco and tobacco related products. Imperial is the world leader in roll-your-own, rolling papers and tubes. Group brand names include Lambert & Butler, Davidoff, Rizla, John Player, Navy Cut, Woodbine, Richmond, Golden Virginia, Embassy, Regal, Super Kings and many others. Its brands and products are available in over 160 countries worldwide. It is the market leader in the UK and holds second place in Germany. The group currently operates 49 manufacturing sites and employs around 38,000 personnel. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Imperial Tobacco: Panmure Gordon keeps buy rating and 2,900p target; Jefferies keeps hold rating and 2,560p target; Investec keeps buy rating and 2,660p target.
IMPs, or Imperial Tobacco, is set to publish full year results on Tuesday and the smoke signals from the fags maker is that the performance will be quite varied by region. Tobacco net revenues are expected to be up by around 4% with particularly good performances in its Eastern Europe, Africa & Middle East and Asia-Pacific regions. However, stick equivalent volumes are expected to decline by up to 3% , the majority of which is due to ongoing market weakness in Ukraine and Poland and compliance with international trade sanctions against Syria. Adjusted earnings per share are seen rising to 199.54p from 188p the year before. Profit before tax is tipped to rise to £2,521m from £2,153m the previous year.
Imperial Tobacco: Goldman Sachs upgrades to neutral, target cut from 2,540p to 2,500p.
Imperial Tobacco: Panmure Gordon maintains buy rating and 2,900p target.
Imperial Tobacco: Nomura keeps reduce rating and 2,166p target.............
Time to buy into a little sin methinks! Need to decide on this or BAT.
Investors were concerned about trading at Imperial Tobacco over the last month, with the shares being down around 4% in the year to date. However, yesterday’s update reassured, The Telegraph´s Questor team says, propelling the shares to near the top of the FTSE leader board. In the recent past there was much talk about equity markets not performing in the first decade of this century, as major indices were little changed. However, the MSCI World Tobacco Index had the highest return out of 67 groupings in the MSCI World Index in the 10 years to 2011. Investing in sin is a strategy that pays off, although -of course- past performance is no guide to the future, Questor explains. There are moves by western governments that aim to discourage smoking. Last month, Australia’s highest court upheld a new government law on mandatory packaging for cigarettes that removes brand colours and logos from packaging. The UK government is considering something similar. However, growth in emerging markets should keep sales relatively buoyant - and the UK is proving resilient. Imperial shares are trading on a September 2014 earnings multiple of 11.1, which is a discount to British American Tobacco on 14.2. However, Imperial has a higher debt profile. The shares yield a prospective 4.9%. Questor last said hold in July when the shares were at £24.49. Following yesterday’s statement, they are once again a buy for income it says.
Martin Deboo, analyst at Investec Securities, raises two interesting points about Imperial Tobacco. One, it is the lowest rated across a range of 30 consumer goods producers, the shares, as the graph shows, having lost 200p of their value, or approaching 8 per cent, since July. To be fair, the comparators include the posh Swiss chocolates maker Lindt, which is in a different galaxy to the makers of Golden Virginia tobacco, favourite of the “roll-your-own” brigade. But the shares underperformed its only quoted rival in the UK, British American Tobacco, which has lost a little more than 4 per cent over that period. There are reasons why the two should be in retreat: a ruling by Australia’s highest court in August moved forward the introduction of plain packaging laws. This is widely expected to be followed elsewhere; the UK has yet to adopt a firm view, but South Africa has said it will follow suit. However, plain packaging in the UK would benefit makers of cheaper brands, such as Imperial, Mr Deboo believes, because it erodes the value of more expensive ones. The second interesting fact is that Imperial shares have over the past couple of years tended to rise over the last four months of the year, probably because the company’s September financial year-end means the shares go ex-dividend in January. Imperial shares have suffered from the decision in 2007 to pay £11bn for the Franco-Spanish firm Altadis, increasing its exposure to the Spanish market at quite the wrong time, and the corresponding rise in debt. The shares at present yield about 5 per cent for the year about to begin, but the real attraction is an eventual takeout, which has long been in prospect. A strong hold, then, says The Times´ Tempus column.
Imperial Tobacco Group has said that the overall financial position and operational performance of the group in the year ended September 30th has been in line with its expectations. Tobacco net revenues are expected to be up by around four per cent with particularly good performances in its Eastern Europe, Africa & Middle East and Asia-Pacific regions. However, stick equivalent volumes are expected to decline by up to three per cent, the majority of which is due to ongoing market weakness in Ukraine and Poland and compliance with international trade sanctions against Syria. In a statement the firm said: "We are delivering strong gains from our key strategic brands and improving our revenue momentum through our focus on driving quality growth across our total tobacco portfolio. "We are making excellent progress with our key strategic brands Davidoff, Gauloises Blondes, West and JPS and expect this to be reflected in further strong volume and revenue gains from these brands which continue to represent an increasing proportion of our volumes." Analysts at Credit Suisse reacted by reiterating their "outperform" view on the company's shares. They added the followin: "This means that Imperial should deliver 4% organic tobacco sales growth in FY12, which we see as a resilient performance considering the difficult EU industry volume backdrop this year (...) On the positive side, Imperial's strategic brands continue to enjoy strong momentum in non-EU markets, trends in Germany remain favourable and the roll-out of innovation (glidetec, Davidoff Id, crushballs) should continue supporting top line growth in coming quarters."
Positive Points: Tobacco net revenues are expected to be up by around 4% - at the upper end of analyst forecasts. Strong gains were made within key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of Imperial’s total stick equivalent volumes. The group holds investor appeal as it is a highly defensive predictable cash generator with a progressive dividend policy. The half year dividend was increased by 13% compared to the prior year. Imperial Tobacco benefits from good geographical diversification (products are available in over 160 countries worldwide) and a multi-product portfolio provides a degree of business resilience and a strong platform to deliver future growth. Imperial has been linked with sporadic talk as a takeover target by larger peers. The industry is likely to fight hard against plain packaging proposals. The group's CEO has previously insisted that plain packaging would not hugely dent Imperial's revenues. Despite concerns that consumers will simply buy on price, she highlighted its value offerings.
Negative Points: Overall, stick equivalent volumes for the period are expected to decline by up to 3%. Like rivals Philip Morris, British American Tobacco and Japan Tobacco, Imperial has suffered from a decline in smokers in mature markets. However, it has looked to offset this by hiking prices and expanding into Emerging Markets. Last year, Australia became the first country to pass plain packs laws, due to be implemented in December (2012). Tobacco companies will have to sell products in identical packs with large health warnings on. Other governments such as the UK's are thought to be considering such proposals. Currency movements provide potential headwinds. The tobacco industry is exposed to litigation which could have a significant impact on future financial performance.
Financial Highlights: Stick equivalent volumes are expected to decline by up to 3% - compared to re-stated 2011 volumes of 346 billion as disclosed at its 2012 half year results. Tobacco net revenues, on a constant currency basis, are expected to be up by around 4%.
Full year trading update: Trading proves in line at Imperial Tobacco. In a relatively brief statement, management confirmed that the group's overall financial position and operational performance had proved to be in line with its prior expectations. Volumes (stick equivalent) are expected to decline by up to 3%, the majority of which is due to ongoing market weakness in Ukraine (cigarette), Poland (fine cut tobacco) and compliance with international trade sanctions against Syria. Nonetheless, aided by an emphasis on higher priced quality brands, tobacco net revenues are expected to be up by around 4% - at the upper end of analyst forecasts - with particularly good performances in Eastern Europe, Africa & Middle East and Asia-Pacific regions highlighted. On balance, with concerns for plain packaging introductions and additional country (Russia) indoor smoking bans weighed against defensive attributes in uncertain economic times,
Company overview Imperial Tobacco is a leading international tobacco company, headquartered in Bristol, England. The group's core activity is the manufacture, marketing and sale of tobacco and tobacco related products. Imperial is the world leader in roll-your-own, rolling papers and tubes. Group brand names include Lambert & Butler, Davidoff, Rizla, John Player, Navy Cut, Woodbine, Richmond, Golden Virginia, Embassy, Regal, Super Kings and many others. Its brands and products are available in over 160 countries worldwide. It is the market leader in the UK and holds second place in Germany. The group currently operates 49 manufacturing sites and employs around 38,000 personnel. It is listed on the London Stock Exchange and is a constituent of the FTSE 100 Index.
Panmure Gordon maintained its "buy" rating for Imperial Tobacco (IMT) with a target price of 2,900p. The cigarette company will issue a pre-close trading statement on 21st September, and the broker forecasts a 2% decline in stick equivalent volumes, offset by price increases. Panmure noted that the shares have fallen by around 8% since August, putting them on a 20% discount to peers on an earnings basis. The broker added that the stock offers a dividend yield of 4.3%.
Ahead of Imperial Toabcco's pre-close trading update next Friday, Panmure Gordon has reiterated its 'buy' recommendation and 2,900p target price for the cigarette and tobacco giant. Panmure expects to see a 2% decline in stick equivalent volumes for the full year, slightly improved from the 3% fall in the nine months to the end of June due to the strong growth in its Rest of World division. Full-year tobacco revenues are forecast to rise 3.5% at a constant currency basis, better than the 3% increase at the nine-month mark. The shares - down 8% since early August - have been hampered by the negative news flow about potential increased regulation in markets such as France and Russia. While this is expected to remain a near-term headwind, Panmure expects it to be offset by "evidence that its organic growth strategy is delivering and confirmation of continued strong cash generation." The broker says that the current 20% discount to the peer group (price-to-earnings ratio basis) is too great: "We continue to regard this discount as too large given its attractive cash generation (free cash flow yield is 8% in FY 2012E) and believe the discount should narrow on evidence that Imperial's organic growth strategy is delivering results."
IMT, LMI, AV post divi, RSA post divi IMO are a buy I'm in today with IMT 305 at 2290, will be in SXX and LMI also when stocks drop a little, don't post often am a SORT member over at CSLT and hold AV, RSA, EDL, IMT, RIO & CSLT. All the best also Mulledwine keep up the good work many follow but don't post I am a self managing SIPP holder managing my own portfolio but no expert with no expert opinions just gonwithbwhat I feel is right on charts, index, news and dips etc. doing OK at moment avoid AIM to much as only like medium risk. ATB
Ahead of Imperial Toabcco's pre-close trading update next Friday, Panmure Gordon has reiterated its 'buy' recommendation and 2,900p target price for the cigarette and tobacco giant. The broker says that the current 20% discount to the peer group (price-to-earnings ratio basis) is too great: "We continue to regard this discount as too large given its attractive cash generation (free cash flow yield is 8% in FY 2012E) and believe the discount should narrow on evidence that Imperial’s organic growth strategy is delivering results."
Positive Points: Strong gains were made within key strategic brands Davidoff, Gauloises Blondes, West and JPS which now account for almost a third of Imperial’s total stick equivalent volumes. The group holds investor appeal as it is a highly defensive predictable cash generator with a progressive dividend policy. Imperial Tobacco benefits from good geographical diversification (products are available in over 160 countries worldwide) and a multi-product portfolio provides a degree of business resilience and a strong platform to deliver future growth. Management reported continued growth in luxury Cuban cigar volumes. Imperial has been linked with sporadic talk as a takeover target by larger peers. Low debt, robust cash generation and modest organic growth are attractions.
Negative Points: Overall, stick equivalent volumes for the nine months to end June fell 3%. Imperial, like its bigger rivals Philip Morris, British American Tobacco and Japan Tobacco has suffered from a decline in smokers in mature markets but has offset this by hiking prices and expanding into Emerging Markets. The company is exposed to currency translation and transaction risk. The tobacco industry is exposed to litigation which could have a significant impact on future operational and financial performance. The UK (or other governments) may introduce rules requiring "plain packaging", the consequences of which may lead to a significant decline in profits in the markets affected.
Financial Highlights: Imperial Tobacco reported net revenue up 3%. The tobacco company saw strategic brand growth continue with net revenues up 13% and combined stick equivalent volumes up 6%. Imperial's strong growth record in cigars and snuff continues. Volumes of luxury Cuban cigars increased by 1% in total and by 10% in emerging markets, and grew snuff volumes by 39%.
Interim statement: Imperial Tobacco saw sales growth gather pace leading the Board to confirm that its financial and operational performance is on track for the full year (30th September). Bristol based Imperial, reported tobacco net revenue in the nine months to end of June was up 3%, reflecting an ongoing strong price/mix. Stick equivalent volumes declined 3%. Strong key strategic brand growth continued to be seen with net revenues up 13% and combined stick equivalent volumes up 6%. Furthermore, the group saw strong emerging market growth in Cuban cigars and significant snuff gains. Regionally, in the EU, Imperial said it consolidated the market share gains it made in Q2 with stable or increasing cigarette and fine cut tobacco shares in a number of markets. In Spain, the group continued to build on its leading positions in cigarette and fine cut tobacco. Outside the EU the group reported excellent performances from key strategic brands in numerous emerging markets in Asia-Pacific, Africa and the Middle East and Eastern Europe, while the USA remains very competitive.