Imperial Brands' Preliminary Results Indicate Volume Stabilization Is Continuing

Imperial Brands' preliminary financial results for fiscal 2021 indicated that the momentum achieved in the first half of the fiscal year continued in the second. The strategy to stabilize market share appears to be bearing fruit; this is in line with our thesis that with a more focused approach to investment, Imperial will be able to continue to generate strong cash flow in the medium and long term. Until more details are provided, we are retaining our GBX 2,900 fair value estimate, and we see a lot of potential upside to Imperial.