TIDMBATS
RNS Number : 5180U
British American Tobacco PLC
25 October 2017
25 October 2017
British American Tobacco p.l.c.
Capital Markets Day
British American Tobacco p.l.c. is today hosting a Capital
Markets Day for investors and analysts in London. Presentations
will include an update on our Next Generation Products (NGP),
including an exhibition showcasing our NGP portfolio; our new US
subsidiary, Reynolds American Inc. ("Reynolds"); Regulation;
Marketing and an update on the performance of our International
business.
During the day, we will share our objectives for the growth of
our NGP business. These are to generate NGP revenue of over
GBP500m* this year, and for this to double in 2018 to over GBP1bn,
rising to more than GBP5bn in 2022. We expect the NGP business to
be breaking-even by the end of 2018 and to deliver substantial
profit by 2022.
We will provide an update on the performance of glo, our Tobacco
Heating Product, which has continued its excellent growth in Japan,
already achieving a national share in a leading convenience chain
of more than 1.8% in only the second week of the national rollout,
with share in Sendai now at 10.4%. In South Korea, share in
handlers in Seoul has reached 3.5%, after nine weeks.
We will also update our estimate of the impact of foreign
currency movements on our full-year numbers, including Reynolds.
Assuming FX rates were to remain unchanged for the balance of the
year, we would expect the translational currency tailwind to be
6.5% on operating profit and 5.5% on EPS. The transactional
headwind remains around 2% on operating profit.
As stated at the Half-Year Report, the pricing environment in a
number of our markets has been more difficult, notably in Russia,
although recent developments are more encouraging.
The business continues to perform well and we remain confident
of another good year of earnings growth at constant currency.
Commenting on the Capital Markets Day, Nicandro Durante, Chief
Executive, said:
"We are very pleased to be sharing more details on the
opportunities for BAT in NGPs and combustibles, and to introduce
our new US subsidiary just three months after the completion of the
Reynolds acquisition. We are proud to share our exciting future
product pipeline across both the Tobacco Heating and Vapour
categories and to provide shareholders with an opportunity to
experience the products first-hand. Our NGP business has real
momentum and our confidence is reflected in the financial
objectives we have set out."
The event will commence at 8.00am BST.
All presentations will be made available on BAT's website
http://www.bat.com/investorpresentations and on the Investor
Relations App once the event has started.
*Pro forma number reflecting 12 months of Reynolds in 2017.
Enquiries:
British American Tobacco Press Office
Annie Brown / Joanne Walia
+44 (0)20 7845 2332 / 1108
British American Tobacco Investor Relations
Mike Nightingale / Rachael Brierley / Stephanie Brassinne
+44 (0)20 7845 1180 / 1519 / 2012
About British American Tobacco
British American Tobacco (BAT) is a global tobacco and nicotine
products company. Its brands are sold in more than 200 markets and
it employs around 55,000 people worldwide. BAT's cigarettes are
chosen by around one in eight of the world's one billion adult
smokers and its five Global Drive Brands are Dunhill, Kent, Lucky
Strike, Pall Mall and Rothmans. Alongside its traditional tobacco
business, BAT is developing a portfolio of innovative next
generation tobacco and nicotine products to offer consumers a
choice of potentially less risky alternatives to conventional
cigarettes. BAT is market leader in over 55 countries and in 2016
the Group generated reported revenue of GBP14.75 billion and
adjusted profit of GBP5.48 billion.
In July 2017, British American Tobacco p.l.c. acquired the
remaining 57.8% of Reynolds American Inc. that BAT did not already
own, creating a stronger, global tobacco and Next Generation
Products company.
Disclaimers
This announcement does not constitute an invitation to
underwrite, subscribe for, or otherwise acquire or dispose of any
British American Tobacco p.l.c. ("BAT") shares or other securities.
This announcement contains certain forward-looking statements, made
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, regarding our intentions, beliefs or current
expectations concerning, amongst other things, our results of
operations, financial condition, liquidity, prospects, growth,
strategies and the economic and business circumstances occurring
from time to time in the countries and markets in which the Group
operates.
These statements are often, but not always, made through the use
of words or phrases such as "believe," "anticipate," "could,"
"may," "would," "should," "intend," "plan," "potential," "predict,"
"will," "expect," "estimate," "project," "positioned," "strategy,"
"outlook" and similar expressions.
It is believed that the expectations reflected in this
announcement are reasonable but they may be affected by a wide
range of variables that could cause actual results to differ
materially from those currently anticipated.
Among the key factors that could cause actual results to differ
materially from those projected in the forward-looking statements
are uncertainties related to the following: the failure to realize
contemplated synergies and other benefits from mergers and
acquisitions, including the recent merger of Reynolds American Inc.
("Reynolds") and BAT; the effect of mergers, acquisitions and
divestitures, including the merger of Reynolds and BAT, on BAT's
operating results and businesses generally; the ability to maintain
credit ratings; changes in the tobacco industry and stock market
trading conditions; changes or differences in domestic or
international economic or political conditions; changes in domestic
or international tax laws and rates; the impact of adverse domestic
or international legislation and regulation; the ability to
develop, produce or market new alternative products and to do so
profitably; the ability to effectively implement strategic
initiatives and actions taken to increase sales growth and the
market position of BAT's brands; the ability to attract, convert
and retain new or existing consumers; the ability to enhance cash
generation and pay dividends; adverse litigation and dispute
outcomes and the effect of such outcomes on BAT's financial
condition; adverse decisions by regulatory bodies and changes in
the market position, businesses, financial condition, results of
operations or prospects of BAT.
Past performance is no guide to future performance and persons
needing advice should consult an independent financial adviser. The
forward-looking statements reflect knowledge and information
available at the date of preparation of this announcement and the
Company undertakes no obligation to update or revise these
forward-looking statements. Nothing in this document should be
construed as a profit forecast. Readers are cautioned not to place
undue reliance on such forward-looking statements.
Additional information concerning these and other factors can be
found in BAT's and Reynolds's filings with the U.S. Securities and
Exchange Commission ("SEC"), including Reynolds's most recent
Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K and BAT's registration statement on
Form F-4, which was declared effective by the SEC on June 14, 2017,
and Current Reports on Form 6-K, which may be obtained free of
charge at the SEC's website, http://www.sec.gov, and BAT's Annual
Reports, which may be obtained free of charge from BAT's website
www.bat.com.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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