MARTIN DEBOO INVESTEC
The third quarter has come in below our expectations with an implied volume decline in the quarter of around one per cent. We are disappointed: there should have been decent share momentum out of the second quarter, and the third quarter presented the weakest volume comparative of the year.
JONATHAN JACKSON KILLIK & CO
Although the level of net debt is high, we are comfortable given the business is defensive and highly cash generative. Imperial has very low fixed capital investment, high margins and a target to convert 90-100 per cent of profit into cash. We reiterate our Buy recommendation.
DAMIAN MCNEELA PANMURE GORDON
Despite lowering our earnings per share forecasts to reflect foreign exchange headwinds we believe that Imperial remains well positioned to deliver further volume growth from its key brands and should also benefit from positive pricing momentum. The valuation remains attractive.