First Read: Imperial Brands "Off the 1H26 Conference Call" (Neutral) Baig

Research evidence excerpt

First Read: Imperial Brands "Off the 1H26 Conference Call" (Neutral) Baig

long term, and in a supportive market environment, it has to price 09/26E 333.46 336.31

left. Share is important, but it is one of the metrics the company looks at, and in its 09/27E 361.43 366.04

09/28E 395.09 398.14

evolving the strategy, recognising shifting gross margins, the company will focus

on the consumer. Value share has benefits and downside, value share more Faham Baig

difficult to calculate, but it is a narrow view, and it is important to focus on volume, Analyst

value and share. faham.baig@ubs.com

+44-20-7568 3966

FDA enforcement priorities: The company does not want to comment at this

Emily Teo

stage, and FDA is likely to provide further clarifications this week. The company is

Associate Analyst

excited re its Zone nicotine pouches business, and has grandfathered rights to emily-s.teo@ubs.com

launch higher strength variants and new flavours in the second half. Blu vapour +44-20-7567 1002

exit reflects a decade-old technology that was not fit for purpose.

Germany tax proposal: Every five years the gov't publishes a tax plan, which is

currently ongoing for the next five years. There are ongoing conversations of a tax

increase to partly offset fuel costs, and is unlikely to impact this current fiscal year,

and more of an impact from next year.

Value market share: Fine-tuning approach to share by being present in all

segments and focusing on revenue growth.

US illicit vapour enforcement: The company believes cross-category

substitution and macro impact in the US have reduced, and the industry volume

decline is getting back to some normality. It sees some impact from enforcement in

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