Imperial IMPP 2025Q1 Earnings Preview Upside Expected on Strong Revenue Growth

AinvestwebTuesday, May 20, 2025 10:04 pm ET
1min read
Forward-Looking Analysis
Imperial Brands is anticipated to achieve low single-digit growth in tobacco and next-generation product net revenue for the first half of 2025. Analysts project the Group's adjusted operating profit will grow at about 1-2% during this period, while adjusted EPS is expected to increase around mid-single digits. The company's ongoing share buyback program is enhancing its financial performance, although higher finance and tax costs may offset some benefits. Imperial Brands' commitment to its 2030 strategy aims to deliver a compound annual growth rate of high single-digit adjusted EPS and 3-5% in adjusted operating profit. Analysts remain optimistic about the company's future due to its robust growth strategy and stable revenue projections, with future performance expected to be weighted toward the second half of the year.

Historical Performance Review
In the fourth quarter of 2024, Imperial recorded revenue of $26.21 million, resulting in a net income of $3.92 million. The company's earnings per share reached $0.10, supported by a gross profit of $26.21 million. This performance indicated a stable financial foundation leading into 2025.

Additional News
Recently, Imperial Brands maintained its guidance for fiscal 2025, reflecting a 3.2% net revenue growth in the first half of the year. The company's management presented a strategic outlook for 2030, focusing on sustained growth in net revenue, EPS, and free cash flow over the next five years. To support this strategy, Imperial Brands is pursuing a share buyback program aimed at enhancing shareholder value. As part of its growth initiatives, the company is committed to expanding its tobacco and next-generation products, ensuring a stable market position. No significant changes in executive leadership or mergers and acquisitions have been reported recently.

Summary & Outlook
Imperial Brands exhibits a stable financial health, underpinned by consistent revenue growth and strategic initiatives aimed at long-term expansion. The company’s focus on tobacco and next-generation products, along with a robust share buyback plan, presents a positive growth catalyst. Risks include potential impacts from rising finance and tax costs. With the implementation of its 2030 strategy, Imperial is positioned for sustained growth, supporting a bullish outlook for future performance. Overall, the company shows promise in maintaining its competitive edge and delivering value to shareholders.