Imperial Brands (IMB) Barclays 19th Annual Global Consumer Conference summary

Strategic priorities and performance

• Focused on evolving Strategy 2030, emphasizing both performance and transformation for long-term sustainability.

• Achieved four consecutive years of positive net revenue growth, high single-digit EPS, and strong cash flow, with FY guidance above GBP 2.2 billion.

• Transformation program targets GBP 320 million in savings by July 2027, including factory exits and manufacturing excellence initiatives.

• Partnership with Capgemini supports digital transformation and AI integration, with 400 staff already transitioned.

• Ongoing commitment to shareholder value, but acknowledges need to further convince the market, especially regarding U.S. and Germany.

Market share and regional dynamics

• U.S. market share gained 185 bps over five years, with a recent 20 bps decline due to increased competition at the value segment.

• Malibu brand launched to replace Crown, now in 40,000 stores, supporting continued U.S. growth.

• Improved enforcement against illicit vapes in the U.S. has positively impacted cigarette volumes.

• Germany's market share stabilized after years of decline, with ongoing brand investment and professionalized sales force.

• German excise tax increase in January 2027 expected to be 50 cents to €1, with no immediate September hike.

Regulatory and tax environment

• European tax directive negotiations have resulted in a more manageable framework, providing lead time for adaptation.

• Australia remains profitable despite significant volume declines and ongoing tax and enforcement changes.

• U.K. faces new vape taxation from October, but remains a top profit market with strong NGP growth.

• Five clusters, including Iberia and Africa, are growing rapidly and offsetting challenges in mature markets.