Stock Analysis

Imperial Brands Full Year 2023 Earnings: EPS Beats Expectations

Simply Wall St

Published November 16, 2023

Imperial Brands (LON:IMB) Full Year 2023 Results

Key Financial Results

Revenue: UK£18.1b (up 6.9% from FY 2022).
Net income: UK£2.33b (up 48% from FY 2022).
Profit margin: 13% (up from 9.3% in FY 2022). The increase in margin was driven by higher revenue.
EPS: UK£2.52 (up from UK£1.66 in FY 2022).

LSE:IMB Revenue and Expenses Breakdown November 16th 2023

All figures shown in the chart above are for the trailing 12 month (TTM) period

Imperial Brands EPS Beats Expectations

Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 4.7%.

The primary driver behind last 12 months revenue was the Tobacco & NGP - Europe segment contributing a total revenue of UK£11.7b (65% of total revenue). Notably, cost of sales worth UK£11.4b amounted to 63% of total revenue thereby underscoring the impact on earnings. The largest operating expense was Sales & Marketing costs, amounting to UK£2.34b (54% of total expenses). Explore how IMB's revenue and expenses shape its earnings.

Looking ahead, revenue is expected to decline by 19% p.a. on average during the next 3 years, while revenues in the Global Tobacco industry are expected to grow by 4.7%.

Performance of the market in the United Kingdom.

The company's share price is broadly unchanged from a week ago.

Risk Analysis

Before we wrap up, we've discovered 3 warning signs for Imperial Brands (1 is a bit unpleasant!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.