IMPERIAL BRANDS

Analysis of Imperial Brands share price

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Before you start speculating on the Imperial Brands share price, we can help you with your analysis of this stock. Indeed, we will, through this article dedicated to this title, make you discover the economic and financial data that will be useful for your analysis. We will thus approach this company and the details of its activities, present its main competitors on the market or show you some concrete examples of partnerships that this group has been able to set up over the last few years. We will also see how you can carry out a good fundamental analysis of this stock based on the most relevant publications and news.

Elements that can influence the price of this asset:

Analysis N°1

Given the industry in which Imperial Brands operates, tobacco legislation will of course be closely monitored, including measures put in place by various governments to reduce the number of smokers, such as tax increases or neutral cigarette packages.

Analysis N°2

It will also be necessary to look at the strategy implemented by this group in order to diversify its various activities. In particular, it is known that Imperial Brands plans to market cannabis in the coming years and already has a branch specializing in electronic cigarettes.

Analysis N°3

The tobacco market is also very competitive and you will therefore have to follow carefully all the important news and information from the group's direct competitors, which we will present below.

Analysis N°4

It will also be essential to monitor the various disposal, acquisition or partnership transactions that the Imperial Brands group may put in place in order to promote its growth or to establish itself in new markets or new segments.

Analysis N°5

Finally, the financial results of this company will be systematically analysed with its annual net income and its various margins and the most important financial ratios. It will also be possible to compare these results with the results anticipated by analysts or with the objectives that the group has set for itself.

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General presentation of Imperial Brands

Let's go now to Imperial Brands. Indeed, a good knowledge of this group is an essential prerequisite before any investment on its share price and you must be familiar with the activities of this company and its main sources of income in order to anticipate any future opportunities or threats.

Imperial Brands PLC is a British company specialising in the tobacco sector. Specifically, the group is currently one of the world's leading manufacturers and sellers of tobacco products and the leader in this sector in the UK.

In order to better understand the activities of this group, it is possible to divide them into different divisions according to the share of turnover they generate and in this way :

  • The manufacture and sale of traditional and new generation tobacco products accounts for the bulk of the group's revenues with 71.6% of sales and with cigarettes under the brands Davidoff, JPS, Parker & amp; Simpson, Fine, West, Lambert & amp; Butler, Winston, News, Bastos, Kool, Gauloises or Knox, cigars with the brands Backwoods and Dutch Master, electronic cigarettes with the brand Blu, heated tobacco with the brand Pulze, sucker tobacco with the brand Skruf and rolling papers with the brand Rizla currently leading in the world.
  • The distribution of tobacco products generates the remaining 28.4% of the company's sales.

It is also interesting to know the geographical distribution of the revenues of this group, which makes 12.5% of its turnover in the United Kingdom, 11.6% in Germany, 11.4% in France, 10.8% in the United States and 53.7% in the rest of the world.

Analysis of Imperial Brands share price
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The major competitors of Imperial Brands

While Imperial Brands is currently one of the leaders in its industry, it faces significant competition from other tobacco industry giants. These competitors should be known and closely monitored as part of your strategy to invest in this value.

Philip Morris International

This international company is also specialized in tobacco products and is based in the United States and Switzerland. This group is notably in charge of the production, distribution and sale of tobacco products including cigarettes, rolling tobacco, kreteks, snus and heated tobacco. It employs 79,500 people worldwide and its products come from 50 different factories around the world.

British American Tobacco

This company is also one of the world's leading tobacco and cigarette companies and owns the Pall Mall, Gladstone, Dunhill, Lucky Strike, Kent, Winfield, Vogue, Players, Parisienne and Alain Delon brands. It is also the second largest tobacco producer in the world in terms of sales and is the leader in more than 50 countries.

Altria

This company is an American multinational that was part of the Dow Jones index until 2008. This group used to manufacture Philip Morris and Marlboro cigarettes and split from Philip Morris International in 2008. Its tobacco-related business is now limited to the United States.

Japan Tobacco International

Finally, another serious competitor of Imperial Brands is JTI, which is part of the Japan Tobacco Group and is one of the major players in the tobacco sector worldwide. It is headquartered in Switzerland and the group markets its brands in more than 120 different countries. JTI currently employs no less than 40,000 people worldwide and owns 24 cigarette production plants, 6 research and development centres and 5 tobacco processing centres. Its external growth strategy is based on the acquisition of numerous competing brands and companies.


The major partners of Imperial Brands

After discovering who Imperial Brands' main adversaries are, we invite you to learn more about its strategic allies. In fact, the company regularly creates partnerships with other companies. Here are a few concrete examples:

Auxly Cannabis

In 2020, Imperial Brands enters the Canadian cannabis industry through a $123 million investment agreement with Auxly Cannabis Group. This partnership includes a research and development partnership and allows this Auxly to benefit from Imperial Brands' global licenses for vaporization technology. The agreement provides for a 19.9% stake for Imperial Brands through a debenture convertible into Auxly stocks at a conversion price of 81 cents per share.

Gemstone Investment Holding

Also in 2020, Imperial Brands has agreed to sell its premium cigar business in the US to Gemstone Investment Holding for €1.2 billion in order to reduce its debt. This sale will be made to two consortia of individual investors. Indeed, the Allied Cigar Corporation will buy the high-end cigars for the rest of the world.

China National Tobacco

Another partnership was signed in 2013, this time with the public group China National Tobacco, with the aim of strengthening Imperial Brands' position in China, which was then the world's leading tobacco consumer. It was a joint venture called Global Horizon Ventures Limited, based in Hong Kong, between Imperial Brands and Yunnan Tobacco, a subsidiary of the Chinese giant. The agreement enabled Imperial Brands to strengthen its sales of the West and Davidoff brands in China and also to promote Yunnan's Jade and Horizon brands internationally.

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Frequently Asked Questions

Which subsidiaries are owned by Imperial Brands?

The Imperial Brands Group currently owns several subsidiaries, including the tobacco and matches industrial exploitation company or Seita, Reemtsma, the Ivorian Tobacco Company or SITAB, the Central African Cigarette Company or SOCACIG, the Burkinabe Cigarette Factory or MABUCIG, the Moroccan Tobacco Company, the Chadian Cigarette Factory and the National Tobacco and Matches Company of Mali or SONATAM.

Who are the private shareholders of Imperial Brands?

Imperial Brands is currently owned 4.75% by Capital Research & Management, 3.11% by Woodford Investment Management, 2.81% by The Vanguard Group, 2.41% by Threadneedle Asset Management, 2.40% by BlackRock Fund Advisors, 2.39% by Independent Franchise Partners, 2.28% by Legal & General Investment Management, 1.98% by FIL Investment Advisors, 1.70% by Orbis Investment Management.

Where can I find the financial data of Imperial Brands?

If you would like to see Imperial Brands' financial data such as the Group's annual and quarterly results or any data concerning the dividend paid to shareholders, simply visit the company's official website in the investor section. There you will find all the information you will need to do this, as well as other important news and communications from the group that will be useful to you.

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