Tag: Imperial Brands

Imperial Negotiates Transfer Russian Assets

Photo: Casimirokt | Dreamstime.com
Imperial Brands has begun negotiations with a local third party about a transfer of its Russian assets and operations.
“We believe that, in the current circumstances, an orderly transfer of our business as a going concern would be in the best interests of our Russian colleagues,” the company wrote in a press release. “We employ 1,000 people in Russia in our sales and marketing operations and in our factory in Volgograd—and their safety and well-being is our key priority in this process. We will also continue to pay their salaries until any transfer is concluded.
“Meanwhile, we are also supporting our Ukrainian colleagues and their families, including with transport and accommodation to enable them to escape the areas most severely hit by conflict as well as [with] resettlement assistance for those who have left Ukraine.
“We have evaluated the financial impact of an exit from Russia and the previously announced suspension of operations in Ukraine on our full-year guidance for FY22. We now expect full-year constant currency net revenue growth of around 0 [percent] to 1 percent. While there will be some ongoing costs related to the suspension in Ukraine, we expect a relatively small impact on our constant currency adjusted operating profit, reflecting the limited profit contribution of the two markets. In FY21, Russia and Ukraine represented in total around 2 percent of net revenues and 0.5 percent of adjusted operating profit. Any transaction relating to our Russian business is subject to agreement being reached.”
March 15, 2022
Firms Scale Back in Russia and Ukraine

Photo: BAT
The leading tobacco companies are adjusting their strategies in Russia and Ukraine following the war between those countries.
Philip Morris International announced the suspension of its planned investments in the Russian Federation, including all new product launches and commercial, innovation and manufacturing investment. PMI has also activated plans to scale down its manufacturing operations amid ongoing supply chain disruptions and the evolving regulatory environment.
“We have watched with shock the war in Ukraine and condemn the violence in the strongest possible terms. We stand in solidarity with the innocent men, women and children who are suffering,” said PMI CEO Jacek Olczak in a statement. “We join the many voices calling for an immediate end to the war and the restoration of peace.”
Olczak said PMI had helped evacuate more than 800 people from the most impacted areas; provided critical aid to employees who remain in Ukraine; and provided those who have left the country with logistical, medical, financial and other practical support in neighboring countries. PMI is continuing to pay salaries to all its Ukrainian employees during this period, the company said.
Ukraine accounted for around 2 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and under 2 percent of PMI’s total net revenues in 2021. The company has one factory and approximately 1,300 employees in the country.
In 2021, Russia accounted for almost 10 percent of PMI’s total cigarette and heated-tobacco unit shipment volume and around 6 percent of PMI’s total net revenues. The company employs more than 3,200 people in the country.
BAT, which employs more than 1,000 people in Ukraine and around 2,500 people in Russia, said it had suspended all business and manufacturing operations in Ukraine and suspended all planned capital investment into Russia.
“In Ukraine, we have suspended all business and manufacturing operations and are providing all the support and assistance we can to our colleagues, including relocation and temporary accommodation. Our businesses bordering Ukraine are providing assistance to the humanitarian relief effort,” the company wrote on its website.
“In Russia, we have a full establishment of our people right across the country, including substantial local manufacturing. Our business in Russia continues to operate. As a key principle, we have a duty of care to all our employees at this extremely complicated and uncertain time for them and their families.”
Japan Tobacco International, which has four factories and nearly 4,000 employees in Russia, announced the suspension of all new investments and marketing activities as well as the planned launch of its Ploom X heated-tobacco product in Russia, citing the unprecedented challenges of operating in Russia at this time. “Unless the operating environment and geopolitical situation improve significantly, JTI cannot exclude the possibility of a suspension of its manufacturing operations in the country,” the company wrote in a press statement.
Imperial Brands also suspended all operations in Russia, halting production at its factory in Volgograd and ceasing all sales and marketing activity.
“We have already suspended our operations in Ukraine in order to prioritize the safety and well-being of our 600 employees in that country,” the company wrote in a statement.
Russia and Ukraine are relatively small markets for Imperial Brands, representing around 2 percent of net revenues and 0.5 percent of adjusted operating profit in 2021.
March 10, 2022
Imperial Recognized for Climate Action

Imperial Brands has won continued recognition as a global leader for its engagement with suppliers on strategies to combat climate change.
The business has been included on the 2021 Supplier Engagement Leaderboard compiled by environmental nonprofit organization CDP.
This is the third successive year that Imperial has been named a Supplier Engagement Leader.
In December, Imperial maintained its position on CDP’s Climate ‘A List’ for its actions to cut emissions and mitigate climate risks.
Companies responding to the full version of the CDP climate change questionnaire also receive a Supplier Engagement Rating (SER). The companies with the best SER are highlighted as Supplier Engagement Leaders—which this year are the top 8 percent of companies to have made disclosures.
“We are pleased to once again be recognized by CDP, and we remain unrelenting in our focus on climate, in line with our commitment to reach net-zero global emissions by 2040,” said Imperial’s Global ESG Director Tony Dunnage in a statement.
February 10, 2022
Tobacco Firms Recognized as Top Employers
BAT, Japan Tobacco International and Imperial Brands have been named as top employers by the Top Employers Institute.
“Being named as a Global Top Employer for the fifth year in a row is a recognition of BAT’s inclusive, engaging culture and innovative working environment,” said Hae In Kim, director of talent, culture and inclusion at BAT, in a statement. “We are continually striving to maintain a workplace where employees feel empowered and well supported, and we are delighted this has been recognized.
“It is an honor to once again be certified by Top Employers Institute,” said Howard Parks, JTI’s senior vice president of people and culture, in a press note. “Our people are at the heart of everything we do, which is why we aim to offer them the best possible working environment. Giving our over 40,000 colleagues the opportunity to grow and providing them with the optimal conditions and support to fulfil their potential is of paramount importance to us.”
“I am delighted that Imperial has been recognized as a Top Employer for another year,” said Alison Clarke, Imperial’s chief people and culture officer, in a statement. “Imperial Brands is a great place to work, grow and develop, and it’s particularly pleasing that—in these challenging times when we can’t always congregate in the way we would like—our people have shown real resilience and embraced new ways of engaging to create an even better place to work.”
The Top Employer certification process is conducted annually by the Top Employers Institute, an independent organization that studies the employee offerings of major employers around the world. Certification recognizes employers that provide best-in-class employment practices, allowing employees to develop themselves personally and professionally while driving business results. Participating companies undergo a rigorous assessment process, which includes an extensive review of employer practices. Several validation sessions are held where evidence of these practices is provided, and an independent audit of the findings is also carried out.
January 20, 2022
Tobacco Recognized for Environmental Initiatives
CDP has recognized Philip Morris International, Japan Tobacco, Imperial Brands and Altria Group for their environmental leadership.
PMI received CDP’s “Triple A” score, recognizing the company’s environmental performance in tackling climate change as well as protecting forests and water security.
“External validation from organizations like CDP encourages us to continue on our journey to create a net-positive impact on society,” said PMI Chief Sustainability Officer Jennifer Motles, in a statement. “We are humbled PMI has received CDP’s Triple A distinction for a second time.”
Japan Tobacco made CDP’s A List for the third consecutive year.
“We are delighted to be included in the CDP’s Climate Change A List and Water Security A List for the third consecutive year,” said Kazuhito Yamashita, member of the board and senior vice president, chief sustainability, in a statement. “This clearly reflects our continued efforts to reduce our environmental footprint and expand our transparency in disclosing information.”
Imperial Brands made CDP’s climate change A List for a third successive year.
“We have a good track record in minimizing our impact on the environment and are committed to rapidly stepping up the decisive actions required to combat climate change,” said Imperial Brands Global ESG Director Tony Dunnag in a statement.
Altria was recognized by CDP for a second consecutive year with a double A rating for tackling climate change and protecting water security.
“We are committed to conserving the natural resources on which our businesses and communities rely,” said Jennifer Hunter, senior vice president, corporate citizenship at Altria in a statement. “As the latest science makes clear, the global community needs to quickly increase the ambition and progress of environmental targets, build climate resilient businesses and prepare for the net zero economy. Altria is committed to doing our part.”
CDP is a not-for-profit charity that runs a global disclosure system for investors, companies, cities and regions to manage their environmental impacts. Its process is acknowledged as the gold standard of corporate environmental transparency.
The organization’s full 2021 A List of companies is available here.
December 7, 2021
Imperial Brands Reports Full-Year Results

Photo: Casimirokt | Dreamstime.com
Imperial Brands reported net revenue of £32.79 billion in the full year that ended Sept. 30, 2021, up 0.7 percent over that reported in 2020. On an organic adjusted basis, net revenue was £7.59 billion, down 1.9 percent but up 1.4 percent at constant currency.
The company operating profit increased 15.2 percent to £3.15 billion. On an organic adjusted basis, operating profit was £3.57 billion, up 2.1 percent (4.8 percent at constant currency) over the previous fiscal year.
“This has been a year of important progress and significant change as we begin to deliver on the new, focused strategy we announced in January 2021,” said Imperial Brands CEO Stefan Bomhard in a statement.
“We have substantially refreshed our leadership team, making new hires to strengthen our consumer-facing capabilities, while building on our existing deep tobacco experience. We have changed the way we work, placing the consumer at the center of our decision-making. We have simplified the organization, creating efficiencies for reinvestment. And we have introduced more rigorous performance management, enabling better prioritization of resources.

Through our focused, consumer-led next-generation products strategy, we are committed to making a meaningful contribution to harm reduction over time.
Stefan Bomhard, CEO, Imperial Brands
“This approach is already delivering improved operational and financial outcomes. In tobacco, our sharper focus and increased investment in the top-five priority markets have begun to stabilize the aggregate market share performance. This is encouraging early progress in addressing the long-term historical declines. We will build on this foundation in the coming year with further investment in brand building and sales execution.
“Through our focused, consumer-led next-generation products strategy, we are committed to making a meaningful contribution to harm reduction over time by offering adult smokers potentially reduced-risk products. In line with our plans, we launched market trials for our heated-tobacco proposition, Pulze and iD sticks in the Czech Republic and Greece, as well as a trial of an improved consumer marketing proposition for our U.S. vapor product, Blu. We will track the consumer data over the coming months to inform our next steps.
“Our five-year plan to transform Imperial is divided into two distinct periods. The year ahead will complete the two-year strengthening phase with further investment in our five priority markets and NGP pilots, the embedding of new ways of working and cost-saving initiatives. This period builds the foundations for the subsequent three-year phase, which focuses on the acceleration of returns and sustainable growth in shareholder value.”
In related news, Ngozi Edozien and Diane de Saint Victor joined the Imperial board as nonexecutive directors on Nov. 15, 2021.
Edozien will join the audit committee, and de Saint Victor will join the remuneration
committee, with effect from Nov. 15. There are no other changes to committee memberships.
Edozien is a nonexecutive director of Guinness Nigeria, Stanbic IBTC Holdings and
Barloworld Limited and was a nonexecutive director of PZ Cussons until September 2017.
De Saint Victor is a nonexecutive director of Transocean Limited and Natixis, which delisted in July 2021.
De Saint Victor was a director of ABB India until July 2020 and was a nonexecutive director of Altran Technologies until April 2020 and Barclays until May 2017.
November 16, 2021
Imperial on Track to Meet Expectations

Photo: MIND AND I
Imperial Brands expects its group net revenue to grow by around 1 percent on an organic constant currency basis for fiscal year 2021, the company revealed in a pre-close trading update ahead of its annual results announcement on Nov. 16.
“We have made good progress in implementing our strategy through a sharper management focus, greater investment behind our priority combustible tobacco markets and new market trials in heated-tobacco and vapor,” said Imperial Brands’ CEO. “We are building a high-performance culture with the introduction of new more consumer-focused ways of working and have made a significant number of new hires to enhance our capabilities in key areas. I am pleased to report the business continues to perform well and we remain on track to deliver our full-year results in line with expectations.”
In Imperial Brands’ combustible cigarette business, greater focus on the company’s five priority markets is beginning to stabilize the long-term aggregate market share performances in these markets with share expected to be slightly lower by around 2–3 basis points compared with a 17 basis point decline in the prior year. The company is stepping up its investment behind its strategic initiatives in each of these priority markets to drive performance improvements. Overall tobacco volumes are in line with expectations, and total group cigarette market share is expected to grow by about 20 basis points. The net effect of the Covid-19 travel restrictions and changes in consumer buying patterns have been a small mix benefit, according to Imperial Brands, although this is beginning to reduce as restrictions are lifted and is likely to unwind further in fiscal year 2022.

We have made progress in implementing our strategy through a sharper management focus, greater investment behind our priority combustible tobacco markets and market trials in heated-tobacco and vapor.
Stefan Bomhard, CEO, Imperial Brands
In next-generation products (NGP), Imperial Brands expects its second-half revenue to be at a similar level to the first half, reflecting the impact of market exits as the company focuses on the categories and markets with the best potential for sustainable growth. The company has taken steps this year to strengthen its capabilities and performance to create a solid foundation for future growth. In line with this strategy, it has launched market trials for its heated-tobacco proposition in the Czech Republic and Greece as well as a trial of an improved consumer marketing proposition for its vapor product, blu, in Charlotte, North Carolina, USA. The company says it will be monitoring the consumer response to these trials over the coming months and will update on progress during 2022.
Group adjusted organic operating profit growth is expected to be in line with Imperial Brands’ guidance of low to mid-single digit constant currency growth, reflecting significantly reduced losses in NGP and increased distribution profit. “The tobacco business has performed well, although adjusted operating profit will be slightly lower than last year, as previously guided, as a result of the planned increased investment to support our strategic plan as well as lower stock revenue/profit in Australia (about £90 million) and U.S. state litigation settlement costs (about £50 million),” the company wrote in its trading update.
October 6, 2021
Imperial to Test Heating Product in Greece

Photo: Imperial Brands
Imperial Brands has stepped up market testing of its heated-tobacco products through a national rollout in Greece.
Insights from Greek consumers on the Pulze device and iD heat sticks will help inform the potential for further launches in a focused number of European markets. Earlier this month, Imperial Brands launched a pilot trial for its tobacco-heating products in the Czech Republic.
Building a targeted and sustainable next-generation product (NGP) business is a key part of Imperial’s new strategy and its commitment to make a meaningful contribution to harm reduction.
According to the company, heated-tobacco is an established NGP category in a number of European territories, including where Imperial already has a strong route to market for its traditional tobacco products.
“Heated-tobacco continues to gain traction among adult smokers in Greece, and we see significant growth opportunities for our promising products in this category,” said Imperial Brands’ chief consumer officer, Anindya Dasgupta, in a statement.
“The valuable consumer insights we gain from the pilot initiatives in Greece and the Czech Republic will inform the scale and pace of further market rollouts.”
Heated-tobacco currently accounts for more than 10 percent of the total tobacco sector in Greece, with further strong growth anticipated.
The Pulze device heats but doesn’t burn iD heat sticks to provide nicotine and tobacco aromas containing fewer and substantially lower levels of the harmful chemicals found in combustible cigarette smoke.
Unlike other heated-tobacco products, the Pulze device does not require a charging case, offering up to 20 consecutive uses. It is available in copper and silver colors.
ID tobacco consumables are being made available in Greece in four flavors: Rich Bronze, Balanced Blue, Capsule Polar and Ice.
September 20, 2021
Imperial Launches HnB Products in Czechia

Photo: Imperial Brands
Imperial Brands has launched its heated-tobacco products in the Czech Republic.
The launch is the first of two planned European pilot trials for the company’s Pulze device and iD heat sticks.
Imperial is investing in heated-tobacco opportunities in a focused number of markets in Europe as part of its new strategy to build a targeted and sustainable next-generation product (NGP) business.
The Czech pilot is the first step in Imperial’s approach of entering markets where the category is already established and where the business is able to leverage an existing strong route to market.
“Heated-tobacco offers significant growth opportunities in Europe where, in many territories, it is the biggest NGP category and the fastest growing,” said Joerg Biebernick, Imperial Brands’ president of the European region, in a statement. “Detailed market testing will allow us to quickly expand our consumer insights and inform the potential to launch validated heated-tobacco products in further European markets.”
Heated-tobacco currently accounts for around 10 percent of the total nicotine sector in the Czech Republic, with further strong growth anticipated.
The Pulze device heats rather than burns iD heat sticks to provide nicotine and tobacco aromas containing fewer and substantially lower levels of the harmful chemicals found in cigarette smoke.
Unlike other heated-tobacco products, the Pulze device does not require a charging case, offering up to 20 consecutive uses. It is available in copper and silver colors.
iD heat sticks are being made available in five flavors: Rich Bronze with rich tobacco flavor and triple flow filter technology, Balanced Blue, Mint Polar Green, Mint Ice and Capsule Polar.
September 1, 2021
Imperial Names New Nonexecutive Directors

Photo: akub Jirsák | Dreamstime.com
Ngozi Edozien and Diane de Saint Victor will join the Imperial Brands board as nonexecutive directors, effective Nov. 15, 2021.
Edozien brings over 30 years’ experience in general management, finance, consultancy and business development gained at multinational companies in Europe, the U.S. and Africa. She has considerable experience of consumer goods, having spent six years on the board of PZ Cussons and four years on the board of Vlisco, and she is currently a nonexecutive director on the board of Guinness Nigeria, a listed subsidiary of Diageo.
During a nine-year career with Pfizer, she led strategy and planning for pharmaceuticals, based in New York, before taking up a regional director role in Africa. Prior to Pfizer, she spent five years with McKinsey, working mainly in the consumer goods and pharmaceuticals sectors. She gained strong commercial experience over five years with Actis, the Africa-focused private equity business, where she originated and led deals in West Africa.
Edozien is the founder and managing director of Invivo Partners Limited, a Nigerian venture capital firm. In addition to her membership on the board of Guinness Nigeria, she is a current nonexecutive director of Stanbic IBTC Holdings and of Barloworld.
De Saint Victor will bring strong legal, regulatory and ESG experience, having held a number of general counsel and other key roles in an international career spanning more than 30 years. Her 13-year tenure as general counsel and company secretary for ABB, a global technology company based in Switzerland and her general counsel role at Airbus before that are reinforced by her prior listed U.K. board experience as a nonexecutive director at Barclays.

I am delighted to welcome both Ngozi and Diane to the board. They will bring considerable international experience across our developed and developing markets.
Therese Esperdy, chair, Imperial Brands
De Saint Victor has experience transforming organizations in sectors undergoing change, most notably at ABB where she was an executive committee member. She also brings a wealth of regulatory and government relations experience, having served as vice president of government relations for Europe at Honeywell International and as part of the U.S. government relations team in Washington for General Electric Co. She is currently a nonexecutive director at Transocean, an international oil drilling business, and is also a nonexecutive director of Natixis, the French financial services firm.
“I am delighted to welcome both Ngozi and Diane to the board,” said Imperial Brands chair Therese Esperdy in a statement. “They will bring considerable international experience across our developed and developing markets.
“These appointments reflect our continued drive to enhance our board capabilities to bring insight and experience from relevant markets and sectors whilst focusing on all aspects of diversity to ensure we have the best possible mix of skills, experience and perspective to drive the business forward.”
September 1, 2021