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Tag: Imperial Brands

  • Imperial Brands Sees Double-Digit Growth in Vapes

    Imperial Brands Sees Double-Digit Growth in Vapes

    Tobacco giant Imperial Brands has reported a dip in revenue despite double-digit growth in its electronic cigarettes division and growth in its traditional tobacco division.

    The company told markets this morning that net revenue from tobacco and “next-generation” products rose 4.6 percent in the year ended September 30.

    Adjusted earnings per share rose 1.09 percent, while reported earnings per share rose 19.1 percent, media reports.

    Overall revenue, which includes duties and peripheral products, fell by 0.2 percent to £32,411 million from £32,475 million in 2023.

    Imperial said its revenue from these products grew 26 percent. However, Imperial’s next-generation revenue remains much lower than for tobacco, with the former representing only around eight percent of tobacco’s net revenue.

    Chief executive Stefan Bomhard said that the tobacco markets remains strong. “In tobacco, investment in our brands and sales force initiatives have delivered aggregate market share gains across our five priority markets, while delivering strong pricing,” he said.

  • Imperial Brands Boosts Share Returns, Vapes Boom

    Imperial Brands Boosts Share Returns, Vapes Boom

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    Imperial Brands said on Tuesday that the nicotine company would boost shareholder returns to 2.8 billion pounds ($3.7 billion) in its new financial year, as it reported strong growth in vapes and other nicotine alternatives, sending its shares higher.

    The maker of Blu vaping products has benefited from hiking tobacco prices to offset a decline in volumes, as well as rising demand for next generation products (NGPs) including vapes, e-cigarettes and oral pouches.

    The company said it planned to buy back 1.25 billion pounds of shares in the year ending September 2025 and pay out cash dividends of about 1.5 billion pounds. That would be up from 2.4 billion pounds of shareholder payouts in fiscal 2024.

    Imperial forecast 20-30 percent growth in NGP net revenues at constant currencies for fiscal 2024, ahead of some analyst expectations, but said overall results would be in line with guidance, with a stronger pound holding back its adjusted operating profit, according to Reuters.

    Shares of the Bristol-headquartered firm were up 4.2% at 2,239 pence in morning trade, the biggest gain on London’s benchmark FTSE index.

    “Imperial Brands is managing to drive growth not only in its fledgling next generation brands but also in ‘legacy’ tobacco products which still make up the lion’s share of the business,” said Derren Nathan, head of equity research at Hargreaves Lansdown.

  • Analysts: U.K. Vape Tax Good for Tobacco Stocks

    Analysts: U.K. Vape Tax Good for Tobacco Stocks

    Image: Monster Ztudio

    Citi analysts have identified the UK government’s new excise tax on vaping products as an encouraging development for British American Tobacco PLC and Imperial Brands PLC.

    The Chancellor, Jeremy Hunt, confirmed in his Spring Budget speech that vaping products would be subject to a new tax from October 2026. According to media reports, this move is designed to maintain a financial incentive for choosing vaping over smoking, complemented by a concurrent increase in tobacco duty, according to media reports.

    The taxation framework will be based on nicotine content, with a three-tiered system imposing charges ranging from £1-3 per 10ml, in addition to the current 20 percent VAT.

    This structured approach aims to regulate the vaping market further and aligns with the government’s health strategy by providing a less harmful alternative to traditional smoking.

    Citi’s short research note said: “Although [Wednesday’s] confirmation of the planned levy on vaping comes as little surprise, we believe that alongside the proposed ban on disposable vapes from April 25, the regulatory risk/reward is skewing to the upside for both BATS and Imperial.”

  • Imperial Calls for Better Targeted Vape Regulation

    Imperial Calls for Better Targeted Vape Regulation

    Photo: Casimirokt | Dreamstime.com

    Imperial Brands has called for a ban on vapes that are deliberately marketed to young people. In its response to the U.K. government’s consultation on “creating a smoke-free generation and tackling youth vaping,” the company argued for stronger enforcement of existing regulation.

    Among other provisions, the government’s plan includes a provision that would make it illegal for anyone born on or after Jan. 1, 2009, to ever legally buy cigarettes, and a ban on disposable vapes.

    “As the owner of the blu vape brand, we share the government’s concerns about the rise in youth vaping and call for a reform of vape flavor names and a ban on packaging that deliberately appeals to under-18s,” Imperial Brands wrote on its website.

    However, Imperial also noted that vaping has played a key role in reducing U.K. smoking levels to the lowest on record, referring to Public Health England’s finding that e-cigarettes are around 95 percent less harmful than normal cigarettes.

    “If a ban on disposable vapes is introduced—which more than half of adult vapers use—it could easily drive some nicotine users to return to cigarette smoking and reverse the positive downward trend,” Imperial wrote.

    The proposed generational tobacco ban, meanwhile, would be unworkable and unenforceable, according to the company. “The prohibition of tobacco products won’t deter tobacco users from smoking; rather, it will increase the already flourishing illicit trade—as was the case in South Africa when the government outlawed the sale of tobacco products during Covid—and lead to a decline in government revenues. Last year, receipts from tobacco duty contributed £10 billion [$12.52 billion] to the public purse,” Imperial wrote.

    “The government’s intention to put the U.K. on a path to a smoke-free future is one we all share; however, a generational smoking ban, coupled with a ban on disposable vapes, risks undermining the country’s progress,” said Oliver Kutz, general manager U.K. and Ireland at Imperial Brands. 

    “It is clear that prohibition does not reduce tobacco consumption; rather, it creates an illicit market, fuels organized crime and presents a real danger to retailers. Removing disposable vapes, the most widely used harm reduction alternative in the U.K., at the same time as prohibiting legitimate tobacco sales is illogical and counterproductive. 

    “If the U.K. wants to continue on its journey to reduce smoking whilst preventing the rise of youth vaping, greater enforcement of the current regulations at the point of sale is imperative. The introduction of a retailer licensing scheme, alongside Fixed Penalty Notices for breaches, would deter retailers from selling to under-18s, ensuring a crackdown on youth vaping that does not risk existing vapers reverting to smoking.”

  • U.S. FDA Drops MDO on Myblu Menthol E-Cigarettes

    U.S. FDA Drops MDO on Myblu Menthol E-Cigarettes

    The U.S. Food and Drug Administration has issued a marketing denial order (MDO) for myblu Menthol 2.4%. Fontem US, a subsidiary of Imperial Brands, is banned from marketing or distributing the product in the United States, or they risk enforcement action by FDA.

    The company may resubmit a new application to address the deficiencies of the product subject to this MDO, according to an FDA press release.

    “Thorough scientific review of tobacco applications is a key pillar under FDA’s role to protect the public from the dangers of tobacco use,” said Matthew Farrelly, director of the Office of Science within the FDA’s Center for Tobacco Products. “This application lacked the scientific evidence needed to demonstrate that the product provided a net benefit to the public health that outweigh the known risks.”

    The FDA evaluates premarket tobacco product applications (PMTAs) based on a public health standard that considers the impact of the product on the population as a whole, including benefits (i.e., complete transitioning to the product or significant reduction in combustible cigarette use among adults who smoke) and risks (e.g., initiation among youth).

    “After reviewing the company’s PMTA, FDA determined that the application lacked sufficient evidence to demonstrate that permitting the marketing of the product would be appropriate for the protection of the public health, which is the applicable standard legally required by the 2009 Family Smoking Prevention and Tobacco Control Act,” the release states. “For example, among other deficiencies, the application did not present sufficient scientific evidence to show the menthol-flavored e-cigarette products provided an added benefit for adults who smoke relative to tobacco-flavored e-cigarettes.”

    The FDA has not authorized for sale of any flavored vaping product other than tobacco. Fontem is expected to challenge the denial order in court.

    In April of last year, The FDA issued MDOs to several myblu brand products manufactured by Fontem US. Fontem Ventures, a subsidiary of Imperial Brands PLC, owns the global e-cigarette brand blu.

  • Imperial Suggests Steps to Tackle Youth Vaping

    Imperial Suggests Steps to Tackle Youth Vaping

    Photo: Casimirokt | Dreamstime.com

    The United Kingdom should establish a new retailer licensing scheme to improve compliance, review flavor naming conventions to limit youth appeal and strengthen the regulations for online advertising and promotion, according to Imperial Brands.

    The company made its suggestions in response to the Office for Health Improvement and Disparities’ (OHID) call on stakeholders to identify opportunities to reduce underage vaping while keeping e-cigarettes available as a quit aid for adult smokers.

    In its consultation response, Imperial also suggested raising product quality and safety standards to ensure adult smokers can feel confident about transitioning to vape products, and working with industry to increase support to local authorities to tackle noncompliance.

    “We welcome the opportunity to contribute to OHID’s call for evidence on youth vaping. Vape products should be used by existing adult smokers and adult vapers only—they should never be used by children,” said Oliver Kutz, general manager U.K. and Ireland at Imperial Brands, in a statement.

    “Government, industry and enforcement authorities must work together to create a regulatory framework which both supports the important role vapes can play in helping adult smokers quit and prevents the appeal and access of these products to under 18s. We are proposing a series of measures to address product standards, flavor and naming regulations, and the retail environment. An integrated, multi-pronged approach is needed in order to drive out irresponsible actors and improve trust in this important product category.”

  • Imperial Launches Pulze 2.0 Heated Tobacco Device

    Imperial Launches Pulze 2.0 Heated Tobacco Device

    Image: Imperial Brands

    Imperial Brands has launched the first all-new upgrade of its Pulze heated tobacco device, as it continues to innovate to create more compelling, potentially reduced harm products.

    Pulze 2.0 offers new levels of convenience with a compact all-in-one design and 25 or more sessions from a single charge.

    Paired with Imperial’s iD sticks now available in 10 different flavors, Pulze offers an attractive, potentially less risky alternative to consumers seeking to switch away from combustible cigarettes, according to Imperial.

    “Our consumer-centric approach to innovation is accelerating the pace of development across all categories,” said Andy Dasgupta, Imperial Brands’ chief consumer officer, in a statement. “Pulze 2.0 is another important milestone on Imperial’s journey to build a healthier future and offers consumers alternative ways to enjoy moments of relaxation and pleasure.”

    Heated tobacco devices such as Pulze release nicotine and tobacco aromas without burning and producing smoke. This means that aerosols produced by Pulze contain substantially lower levels of harmful chemicals than those found in cigarette smoke, research shows.

    Pulze 2.0 is being launched initially in four markets—Italy, Poland, the Czech Republic and Greece—and will be rolled out more widely across Imperial’s heated tobacco footprint in Europe during the remainder of 2023.

    Heated tobacco forms part of Imperial’s multi-category approach to building a strong, focused next generation products business. The company has also recently unveiled major product innovations in vape, with the new Blu 2.0 and Blu bar devices, and modern oral with nine new varieties of its fast-growing Zone X brand.

    The launch of Pulze 2.0 comes as Imperial CEO Stefan Bomhard and CFO Lukas Paravicini today present on the progress of the business’ transformation at the Consumer Analyst Group of New York conference in Boca Raton, Florida, USA.

    The presentation by Bomhard and Paravicini starts at 4 pm EST. Participants can register here.

  • Imperial Brands Launches its Blu 2.0 System in U.K.

    Imperial Brands Launches its Blu 2.0 System in U.K.

    Photo: Imperial Brands

    Imperial Brands has launched Blu 2.0, a new vaping device that replaces its existing Myblu system, in the U.K., reports The Grocer.

    According to Imperial Brands, the new product offers a smoother and richer vaping experience due to its ceramic heating pod technology, which replaces the previously used cotton wick option. It also features a longer-lasting battery and bigger 1.9 mL volume liquid pods.

    The new device also comes with a magnetic lock feature and “power tap,” which enables users to easily check the battery level.

    Imperial has also launched a new range of six flavored liquids for use with the system: Golden Tobacco, Polar Menthol, Fresh Mint, Berry Mix, Blueberry Ice and Fresh Mango. All come in 9 mg and 18 mg nicotine strength variants.

    “Through the launch of Blu 2.0, we’ve developed a product that looks better, tastes better and lasts longer than before to provide consumers with the next-generation vape product they’re looking for,” said Tom Gully, Imperial Tobacco head of consumer marketing for the U.K. and Ireland.

  • Court Denies Stay of Fontem’s Marketing Denial Order

    Court Denies Stay of Fontem’s Marketing Denial Order

    Fontem US had its request for an emergency motion for a stay of its marketing denial order (MDO) denied by the United States Court of Appeals for the District of Columbia. The court denied the stay mainly because Fontem waited too long to file the motion. The denial was filed July12.

    Fontem Ventures, a subsidiary of Imperial Brands PLC and parent to Fontem US, owns the global e-cigarette brand blu. The ruling means that legally, Fontem should have to pull its Myblu products from store shelves that received MDOs from the FDA while the appeal of its MDO goes through the legal process.

    “Fontem has demonstrated that the marketing denial order is causing it harm, but by waiting more than two months after the marketing denial order’s issuance to seek emergency relief, Fontem weakened its claim of irreparable harm,” the court wrote. “That delay also suggests it may have been practicable to seek a stay from the agency.”

    The court stated that Fontem “has not made a strong showing” that it is likely to succeed in its appeal of the MDO issued by the U.S. Food and Drug Administration on merits, noting that as to the multiple bases for the MDO identified by the FDA, the agency likely afforded Fontem fair notice.

    “Fontem US, LLC has not satisfied the stringent requirements for a stay pending court review,” the court wrote.

    The FDA issued MDOs to several myblu brand products manufactured by Fontem US. Tobacco and vaping products subject to a negative action regarding a premarket tobacco product application (PMTA) submission, including those subject to an MDO, may not be offered for sale, distributed or marketed in the US. 

    “On April 8, FDA issued MDOs to Fontem US, LLC for several myblu electronic nicotine-delivery system (ENDS) products after determining their applications lacked sufficient evidence to show that permitting the marketing of these products would be appropriate for the protection of the public health,” the FDA stated in a release.

    Fontem’s appeal is expected to move forward and the court is requiring the case to be expedited
    and the following briefing schedule is to apply:

    • Petitioner’s Brief August 10, 2022
    • Respondent’s Brief September 9, 2022
    • Petitioner’s Reply Brief September 30, 2022
    • Deferred Appendix October 7, 2022
    • Final Briefs October 14, 2022

    “The Clerk is directed to calendar this case for oral argument on the first appropriate date following completion of briefing. The parties will be informed later of the date of oral argument and the composition of the merits panel,” the court wrote.

  • Imperial’s Vapor and Heated Product Sales Surge in Europe

    Imperial’s Vapor and Heated Product Sales Surge in Europe

    Imperial Brands is on track to meet its full-year goals. The expectation is bolstered by strong sales of e-cigarettes and heated tobacco in Europe, the company said on Tuesday, boosting its shares to a more than two-year high.

    Investors seem “relieved that the firm is on track to hit its full year guidance figures, as it proceeds in its five year strategy to shift to tobacco alternatives,” Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, told Reuters.

    After years of slow growth and market share losses, Imperial CEO Stefan Bomhard laid out a turnaround plan in 2021 focused on its five top markets and expanding next-generation products (NGP) deemed less harmful to health. Together, the United States, Britain, Germany, Spain and Australia account for over 70 percent of Imperial’s revenue.

    Sales of Imperial’s next generation brands, which include Pulze heated tobacco and blu e-cigarettes, were up 8.7 percent to 101 million pounds ($126 million), driven by demand in Europe. In November, the company reported a more than 50% reduction in losses in the business.