Imperial Brands Share Discussion Threads

[meijiman] 28/3/2022 13:50

If I had funds with Widows I would immediately close them. But I don't.
Most folk don't give a ff for health and safely or whatever its called now.
I am always pleasantly surprised to see smoking is alive and well in most parts of the world.

[marktime1231] 28/3/2022 13:01

Scottish Widows, the £190B LLOY pension manager, says it is withdrawing its investments from tobacco if it hasn't already done so ...

"“Industries such as tobacco are at severe risk of becoming stranded assets, as they face intense pressure from investors, regulators and consumers, and consistently fail to properly address the social impacts of their products and within their supply chain,” said Maria Nazarova-Doyle, head of pension investments and responsible investments."

I imagine the £millions of investments in high yielding tobacco stocks are where many UK pensioners get their income, but fair enough there is pressure not to invest in dirty business. SW are also right in the sense that tobacco is a declining industry with a finite horizon, athough we have been saying that for 40 years already and I reckon we will be saying it in another 20.

What does this mean for those of us prepared to remain invested in IMB for the high yield? More years (decades?) of downward pressure on the share price while those with a strong conscience divest.

To counter IMB needs to continue its high-reward strategy, keep shrinking the debt, and get on with major buyback programme to hoover up unwanted shares in order to concentrate value, sustain yield. Which means protecting the strong cash flow, not investing in vanity projects, concentrating on core markets and brands. Tick.

When Bomhard set us on this strategy, assuming it succeeds, I tried to imagine what IMB might look like in 5-10 years time. We might be approaching debt-free, except there will be a takeover or take-private long before then. The end-game for me is not a stranded asset but one which appreciates 30% when a buyer comes knocking.

As a voluntary smoker (who voluntarily quit 15 years ago) I have no qualms about investing in tobacco.

[cassini] 27/3/2022 22:33

ESG is born of comfort and excess...

[redbaron10] 26/3/2022 21:23

No one can legislate for one country attacking its neighbour,especially within the European sphere.All very sad and depressing that the lessons of history are never learnt.Old men talk and disagree,while young people die.It all rather makes a mockery of ESG investing now when energy,oil stocks are the best performing sector ytd in 2022.I don't detect the virtue signalling,principled investors eschewing these value stocks now do you? Hypocrisy comes in many forms.The profit motive is a powerful force.I don't judge, as i don't expect people to judge me,but vindication has its pleasures in times like these.

[kiwi2007] 25/3/2022 08:46

Whoops, yes of course I meant West. The roads and traffic towards Poland are generally free moving and there appears to be little danger from the Russian army provided you go South West initially. If this were a privately owned production facility I suspect the owners would be moving heaven and earth to get anything of any value and moveable out of there. IMB may not bother.

[troy holton] 24/3/2022 17:33

Kiwi, I would check your geography if I were you. If anything is to be moved, and I doubt that it’s at all feasible, it needs to come west, not east!

[dazzanic 1] 24/3/2022 17:09

The issue is not machinery. It’s non tobacco materials which need to be reproduced to fit the machines in other factories. These have a lead time of a few weeks, which may be longer than current supplies of the products produced in the two closed factories for other markets.

[medieval blacksmith] 24/3/2022 11:14

"Worth a shot I'd have thought."

Well, thanks for that advice but no thanks.

Dear me.

[kiwi2007] 24/3/2022 10:27

The Russians are not anywhere near the factory yet and the roads West from the South of Kiev are still free moving. They probably don't need to move machinery out of The Ukraine immediately, just East and away from the trouble. Worth a shot I'd have thought.

[thamestrader] 24/3/2022 09:09

Yeah, they'll just drive in to Ukraine, share a wave or two with the Ruskie soldiers welcoming them from the roadside, load the stuff on to trucks and drive it all back out again. Simples.

What could possibly go wrong?

[kiwi2007] 21/3/2022 08:47

The Kiev facility is still Km's from the fighting so IMB have had plenty of time to assess the situation and get a removal team in (from Poland possibly ) to dismantle and pull their production machinery out of Ukraine. Hopefully the haven't just left it there to be used by the Russians.

[karateboy] 19/3/2022 12:15

A man who were rescued from the rubble in Ukrian , as soon he was helped out he asked for a smoke. His rescuers obliged. I guess it was IMB cigarette!

[irenekent] 16/3/2022 09:43

Done the best thing. No matter what agreement is come to sanctions must stay until Putin & his cronies are ousted and prosecuted for war crimes. West should help to rebuild Ukraine and Russia should pay reparations. Putin has probably destroyed Russia for generations. Its economy used to be smaller than California's; now it probably rivals Greenland's. Good riddance.

[dmore2] 16/3/2022 00:13

lot easier than having property that you cant control, or region you cant sell into!
take money move on.. shame we paid 5 years of taxes last year to putin

[scobak] 15/3/2022 18:29

Lot easier than vehicle production and so on. Should be able to ramp up production reasonably quickly and sort out new distribution channels.

[pander45] 15/3/2022 18:05

Don't think so.

[push n run] 15/3/2022 09:49

I'd like to know the impact on production as they're losing 2 factories. Is it easy to move production to somewhere else?

[buywell3] 15/3/2022 08:03

Next leg down anyone ?

[spud] 15/3/2022 08:00

Imperial Brands Is In Talks to Sell Russian Assets, OperationsSource: Dow Jones NewsBy Sabela Ojea Imperial Brands PLC said Tuesday that it has started to negotiate with a local third party regarding the transfer of its Russian assets and operations due to the continuing invasion of Ukraine.The FTSE 100 tobacco group said it has assessed the financial effects of this new decision and its previous suspension of operations in Ukraine. In fiscal 2021, Russian and Ukrainian markets represented around 2% of net revenue and 0.5% of adjusted operating profit, it said.The company said it now expects a relatively small hit to full-year constant currency adjusted operating profit. It expects constant currency net revenue growth of between around 0% and 1%. There will be costs related to the suspension in Ukraine, it added. The company's financial year ends on Sept. 30.Imperial Brands also said an orderly transfer of the business as a going concern is in the best interests of its Russian colleagues, adding that it will continue to pay the salaries of 1,000 employees until a transfer has been successfully concluded.Last week, Imperial Brands said it had suspended all operations in Russia due to the invasion of Ukraine, halting production at its factory in the city of Volgograd.spud