British American Tobacco PLC  

British American Tobacco PLC (LSE: BATS) is an FTSE 100 index-listed entity focused on manufacturing and selling cigarettes, tobacco, and other nicotine products internationally. The company distributes its products to retail outlets across the U.S., Europe, and North Africa (ENA), Americas and Sub-Saharan Africa (AMSSA), and the Asia Pacific and Middle East (APME) regions. The Company operates through the retail of homewares in the United Kingdom segment.

Trading Update (Released on 04 June 2024)

• Financial Update: The group is on track to meet the FY24 guidance, with H1FY24 results are expected to be close to the expectations. The company anticipates H2 FY24 acceleration driven by the rollout of innovations in New Categories and the positive impact of H1 FY24 investments in U.S. commercial actions and related wholesaler inventory movements.
• Operational Highlights: Group cigarette volume share in key markets increased by 30 bps, while value share decreased by 10 bps due to adverse geographical mix and U.S. commercial plans. Despite early signs of U.S. economic recovery, consumer spending remains stretched, with combustible industry volume down about 9% YTD. The management maintained global value share leadership at 41.1%, with gains in AME (up 20 bps) offset by a decline in the U.S. (down 90 bps).
• Outlook: Global tobacco industry volume is expected to decline by approximately 3% as per the management. The company anticipates low-single-figure organic constant currency revenue growth, with a stronger focus on New Category growth in H2 FY24. Adjusted profit from operations is also expected to grow in the low single figures, despite a 2% transactional FX headwind and Group revenue and profit growth will be weighted towards H2 FY24. There is an expected 4% translational FX headwind on adjusted profit from operations growth for both the H2 FY24 and FY24 overall. Operating cash flow conversion is anticipated to exceed 90%.

Share Price Chart

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

British American Tobacco PLC (LSE: BATS) was trading at the current market price of GBX 2,459.00 (as of 27 June 2024, 09:05 AM, GMT+1)

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 27 June 2024. 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.