FDA Plan To Ban Menthol Should Have Limited Financial Impact on Imperial

Stefan Bomhard has a new mantra for Imperial Brands: focus. The new CEO unveiled a five-year strategic plan that will concentrate investments both geographically and on emerging categories that are likely to become the largest profit pools in the future. We think the plan makes sense because it essentially recognizes Imperial's place in the marketplace--it is a fast follower, rather than a leader, in most markets, but a highly profitable one with strong cash flow generation potential that should drive returns to shareholders higher in the coming years.