Tobacco products: approximately 70% of revenue
Next Generation Products (NGP): approximately 20% of revenue
Logistics and Miscellaneous: approximately 10% of revenue

TOP 3 Markets:
USA: approximately 30%
Germany: approximately 25%
United Kingdom: approximately 15%

Imperial Brands PLC generates the majority of its revenue from the sale of tobacco products, including cigarettes and fine-cut tobacco. A growing portion of revenue comes from Next Generation Products, such as e-cigarettes and heated tobacco products, reflecting the company's strategy to diversify and adapt to changing consumer preferences.

The key markets for Imperial Brands are the USA, Germany, and the United Kingdom, which together account for the majority of revenue. These markets are crucial for the company as they not only provide large consumer bases but also enable high margins.

Production sites of Imperial Brands PLC:

Imperial Brands PLC produces its products in several countries worldwide. The most important production sites include:

• United Kingdom: A significant portion of the production capacity is located here, especially for the British market.
• Germany: One of the largest production sites in Europe, producing a variety of tobacco products.
• Poland: A strategically important location for production and distribution in Eastern Europe.
• Netherlands: Known for the production of cigarettes and other tobacco products.
• United States: Production of tobacco products for the North American market.

Imperial Brands also operates production facilities in other countries to efficiently meet demand in different regions. The geographical diversification of production sites enables the company to flexibly respond to market changes and optimize logistics costs.

Revenue growth: 2.1% (2024) Dividend yield: 8.5% (2024)

Imperial Brands PLC pursues a strategy focused on strengthening its core markets and optimizing its product portfolio. In recent years, the company has increased its investments in the Next Generation Products (NGP) sector to offset the decline in traditional tobacco business. These products include e-cigarettes and heated tobacco products marketed as less harmful alternatives to conventional cigarettes.

Additionally, Imperial Brands emphasizes cost efficiency and operational excellence to enhance margins. Another key focus is on reducing debt and maintaining an attractive dividend policy, reflected in the high dividend yield. These measures are intended to make the company more resilient to the challenges of the changing market and secure long-term growth.

Main raw materials: Tobacco, paper, flavorings

Main importing countries:

• Tobacco: Brazil, India, USA, Malawi
• Paper: Sweden, Finland
• Flavorings: USA, Germany

Imperial Brands PLC mainly imports tobacco, which is the most important raw material for their products. The main supplier countries for tobacco are Brazil, India, the USA, and Malawi, known for their high-quality tobacco varieties.

Paper, needed for the production of cigarette packaging and tubes, is mainly imported from Sweden and Finland. These countries are leaders in sustainable paper production.

Flavorings used to enhance the taste of tobacco products are primarily sourced from the USA and Germany, where there are specialized manufacturers for these additives.

Market share: 8.4% (2024, global tobacco market)
EBITDA margin: 37% (2024)
R&D expenses: 1.2% of revenue (2024)

Imperial Brands PLC has a significant competitive advantage that consists of several factors. The global market share of 8.4% in the tobacco market shows that the company has a strong presence, although it lags behind market leaders such as Philip Morris International and British American Tobacco. The EBITDA margin of 37% indicates an efficient cost structure and strong operational efficiency, enabling the company to remain profitable even in a highly competitive market.

Another aspect of Imperial Brands' competitive advantage is diversification into the area of so-called "Next Generation Products" (NGPs), such as e-cigarettes and heated tobacco products. Although R&D expenses appear relatively low at 1.2% of revenue, the company is focused on expanding its product range and adapting to changing consumer preferences.

In addition, Imperial Brands benefits from strong brand awareness and a wide distribution network, allowing the company to globally distribute its products and secure market share. Despite regulatory challenges and a declining traditional tobacco market, Imperial Brands remains competitive through strategic adjustments and innovations.

Institutional Investor Share: approx. 70% (estimated for 2025)

Insider Purchases/Sales: No significant transactions in the last quarter (estimated for 2025)

Imperial Brands PLC traditionally has a high proportion of institutional investors, which is attributed to the company's stable business model and dividend policy. The institutional investor share typically stands at around 70%, which also represents a realistic estimate for 2025.

Regarding insider transactions, there were no significant purchases or sales by company insiders in the last quarter. This suggests that the management currently does not expect any significant changes in the company's value. However, such transactions can vary and should be regularly reviewed to identify current trends.

Market share of Imperial Brands PLC: Estimate 8% (2025)

Top competitors and their market shares:

1. Philip Morris International: Estimate 15%
2. British American Tobacco: Estimate 14%
3. Japan Tobacco International: Estimate 10%
4. Altria Group: Estimate 9%
5. Imperial Brands PLC: Estimate 8%
6. China National Tobacco Corporation: Estimate 7% (outside China)
7. KT&G: Estimate 5%

Imperial Brands PLC has a moderate market share in the global tobacco market. The company's economic moat is less pronounced compared to its largest competitors. Philip Morris International and British American Tobacco have stronger brands, a wider product range, and a larger geographic reach.

Imperial Brands' economic moat is mainly based on its brand recognition and presence in certain European markets. However, leading companies like Philip Morris and British American Tobacco have gained a significant competitive advantage through their investments in smoke-free products and innovative technologies.

Imperial Brands must continue to invest in innovation and diversification to strengthen its economic moat and remain competitive. The competition has heavily invested in new products and markets in recent years, further solidifying their market position.

Revenue growth: 2.1% (2024) Profit growth: 1.8% (2024) Market share in the tobacco sector: 9% (2024)

Imperial Brands PLC recorded a moderate revenue growth of 2.1% in 2024, which can be attributed to stable demand for its products. Profit growth during the same period was 1.8%, driven by efficiency improvements and cost savings.

The company holds a market share of approximately 9% in the global tobacco sector, making it one of the larger players in the industry. This market position provides some stability, especially in a sector characterized by regulatory challenges and declining consumption.

Overall, Imperial Brands could be attractive to investors seeking stable returns in a mature market. However, potential investors should carefully weigh the long-term risks, such as regulatory changes and the trend towards smoke-free products.

Dividend yield: 8.5% (estimated for 2025)
Dividend history: Continuous payout in the last 5 years

Imperial Brands PLC is known for its stable dividend policy. The company has consistently distributed dividends in recent years, indicating a reliable payout policy. The estimated dividend yield of 8.5% for 2025 suggests that the company continues to offer an attractive return to its shareholders.

The reliability of dividend payment is supported by the strong cash flow generation and solid financial position of the company. Despite challenges in the tobacco industry, Imperial Brands has maintained its dividend policy, strengthening confidence in future payouts.