British American Tobacco PLC (LSE: BATS)

British American Tobacco PLC (LSE: BATS) is an FTSE 100 listed Company that manufactures and sells cigarettes, tobacco and other nicotine products.

Next Update: On 27 July 2023, BATS has scheduled the release of its H1 FY23 results.

FY22 Results (for the year ended 31 December 2022) – released on 9 February 2023:

 (Source: Company Filings)

• New Category Business: BATS expects to be profitable in the New Category in FY24 as the segment witnessed market share gains, revenue, and volume growth in FY22. Therefore, the Company is confident of delivering £5 billion in revenue target by FY25.
• Transfer of Russian and Belarusian Businesses: The Russian and Belarusian businesses is now expected to close in FY23, which can impact the revenue growth.
• Financial Growth: In FY22, the Company reported an YoY growth in revenue, adjusted profit from operations, and dividend by 2.3%, 4.3%, and 6.0%, respectively. Further, it delivered £1.9 billion of annualised Quantum savings, well ahead of original £1 billion target, by generating £629 million in FY22.
• Strategic Focus: The Company expects the macro-economic environment to remain challenging in FY23; and thus, it plans to further accelerate transformation by establishing new regional structure for greater collaborations, develop new market archetype model, build multi-category brand portfolio, and prudently allocate resources to further enhance returns.
• Share Buy-back Programme: On 11 February 2022, BATS announced a share buy-back programme of up to £2 billion. Subsequently, the Company repurchased 59,541,862 ordinary shares, worth £2.0 billion, which is recorded within retained earnings.
• FY23 Guidance: The global tobacco industry volume is expected to decline by around 2% YoY in FY23. The Company expects 3-5% of organic constant currency revenue growth, impacted by timing of the transfer of the Russian and Belarusian businesses. The operating cash flow conversion is expected to be in excess of 90%.

Share Price Chart

(Data Source: REFINITIV, Analysis done by Kalkine Group)

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

British American Tobacco PLC closed the trading at GBX 3,018.00 on 9 February 2023.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 9 February 2023. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’

Note 4: Dividend Yield may vary as per the stock price movement.

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