Imperial Brands Earnings: On Track To Deliver Mid-Single-Digit Adjusted Operating Profit Growth

Wide-moat Imperial Brands issued a preliminary first-half fiscal 2024 trading update, indicating that the company was on track to reach half-year and full-year guidance. For the first half of the year, Imperial maintained guidance of positive adjusted operating profit growth from 2023 on a constant currency basis. For the full year, the company continues to guide to tobacco and next-generation products, or NGP, net revenue growth of low single digits and companywide adjusted operating profit growth around midsingle digits. Our forecast is in line at 1.9% and 6.2%, respectively. We are reiterating our GBX 2,900 and $36 fair value estimates and wide moat rating and continue to believe the current market valuation undervalues the future cash flow of the business, providing an attractive investment opportunity for long-term investors.