TIDMBATS
RNS Number : 0377R
British American Tobacco PLC
12 June 2018
12 JUNE 2018
BRITISH AMERICAN TOBACCO p.l.c.
FIRST HALF PRE-CLOSE TRADING UPDATE 2018
Results communications in 2018 will include presentation of
results against 2017, as though the Group had owned the
acquisitions made in 2017 for the whole of that year. Comparison of
results on this basis will be termed "on a representative basis"
and will provide shareholders with a results comparison
representative of the Group having owned the acquisitions
throughout 2017 and 2018. For these comparison purposes, the Group
has previously issued the 2017 results on such a basis for both the
six months ended 30 June 2017 and full year ended 31 December
2017.
Trading update - ahead of closed period commencing 26 June
2018
-- The business continues to perform well and trading is in line with our expectations
-- Strong adjusted revenue growth from the Strategic Brand
Portfolio, on a representative basis
-- Continued strong market share growth, driven by the Global Drive Brands (GDBs)
-- Adjusted revenue and adjusted profit growth, on a
representative basis, expected to be weighted to the second half of
the year, as the impact of a number of significant events affecting
the comparison with H1 2017 unwind
-- Good adjusted constant currency EPS growth, is expected to be
impacted by a significant currency translation headwind of around
9% for the first half and 6% for the full year, assuming exchange
rates remain unchanged for the remainder of the year
The business continues to perform well, in line with
expectations.
As previously announced, adjusted revenue and profit growth, on
a representative basis, is expected to be skewed to the second
half.
Strong volume growth in Pakistan following excise changes in the
first half of 2017 and downtrading in the GCC is expected to drive
greater first half geographic mix dilution. This is expected to
unwind in the second half.
Volume continues to outperform the industry. We expect full year
global industry volume to be down around 3.5%.
We expect our market share to continue to grow strongly, driven
by the GDBs.
Trading in our key markets continues to reflect the trends
discussed at the Preliminary Results in February, with the US,
Pakistan, Bangladesh, Romania, Germany, Canada and Ukraine
performing well and conditions remaining challenging in the GCC,
Russia, South Africa, Malaysia and France.
In the US, we anticipate a good performance on a representative
basis, after adjusting for the one-off comparative impact on
revenue from the disposal of stock related to the Natural American
Spirit transaction. Lower US industry volume, principally in Q1, is
expected to impact revenue in the first half. Share in the first
half is expected to be stable following strong growth at the end of
last year.
In Japan, the growth of the Tobacco Heating Products category
has slowed, however, glo continues to grow and has a national share
of 4.3%. With device supply constraints now lifted, we are on track
for further Japanese and international rollouts in the second half.
In vapour, our business continues to grow and Vype ePen3 is on
track for a launch in Q3 in the UK.
The Group remains on track for another good year of adjusted
constant currency earnings growth, on a representative basis, with
the benefit of the US tax reform helping to fund significantly
increased investment in Next Generation Products (NGPs).
As previously stated, by the end of 2018 our objective is to
more than double our revenue from NGPs to substantially more than
GBP1 billion.
If exchange rates stayed unchanged for the remainder of the
year, there would be an adverse translational impact on operating
profit, on a representative basis of 8% for the first half and 6%
for the full year.
Good adjusted constant currency EPS growth, is expected to be
impacted by a significant currency translation headwind of around
9% for the first half and 6% for the full year, assuming exchange
rates remain unchanged for the remainder of the year.
For further information, please contact:
British American Tobacco Press Office
+44 (0) 20 7845 2888 (24 hours) | @BATPress
British American Tobacco Investor Relations
Mike Nightingale / Rachael Brierley / John Harney
+44 (0) 20 7845 1180 / 1519/ 1263
Forward looking statements
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", "target" 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 impact of
competition from illicit trade; the impact of adverse domestic or
international legislation and regulation; changes in domestic or
international tax laws and rates; adverse litigation and dispute
outcomes and the effect of such outcomes on the Group's financial
condition; changes or differences in domestic or international
economic or political conditions; the inability to obtain price
increases and the impact of price increases on consumer
affordability thresholds; adverse decisions by domestic or
international regulatory bodies; the impact of market size
reduction and consumer down-trading; translational and
transactional foreign exchange rate exposure; the impact of serious
injury, illness or death in the workplace; the ability to maintain
credit ratings and to fund the business under the current capital
structure; the ability to develop and commercialise new alternative
products and to do so profitably; and changes in the market
position, businesses, financial condition, results of operations or
prospects of the Group.
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 BAT
undertakes no obligation to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise. Readers are cautioned not to place undue reliance on
such forward-looking statements.
No statement in this communication is intended to be a profit
forecast and no statement in this communication should be
interpreted to mean that earnings per share of BAT for the current
or future financial years would necessarily match or exceed the
historical published earnings per share of BAT.
Additional information concerning these and other factors can be
found in the Company's filings with the U.S. Securities and
Exchange Commission ("SEC"), including the Annual Report on Form
20-F filed on 15 March 2018 and Current Reports on Form 6-K, which
may be obtained free of charge at the SEC's website,
http://www.sec.gov, and the Company's Annual Reports, which may be
obtained free of charge from the British American Tobacco website
www.bat.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
TSTEAPKFFFEPEFF
(END) Dow Jones Newswires
June 12, 2018 02:00 ET (06:00 GMT)
British American Tobacco (LSE:BATS)
Historical Stock Chart
From Apr 2024 to May 2024
British American Tobacco (LSE:BATS)
Historical Stock Chart
From May 2023 to May 2024