TIDMBATS
RNS Number : 1533Z
British American Tobacco PLC
13 December 2017
13 DECEMBER 2017
BRITISH AMERICAN TOBACCO p.l.c.
SECOND HALF PRE-CLOSE TRADING UPDATE 2017
===========================================
In 2014 the requirement for UK listed companies to produce an
Interim Management Statement ("IMS") was removed. In July 2016, it
was announced that British American Tobacco p.l.c. would no longer
publish a quarterly IMS, and would instead issue short trading
updates prior to the start of closed periods for the Interim and
the Full Year results.
Trading update - ahead of closed period commencing 1 January
2018
-- The business continues to perform well and trading is in line with our expectations
-- Confident of another year of good earnings growth at constant currency, with:
o Continued market share growth, driven by the Global Drive
Brands (GDBs)
o H2 organic operating profit growth reflecting the benefit from
the phasing of volume shipments, offset by a more difficult pricing
environment in some markets
o Reynolds American Inc. (RAI) integration on track, with the
businesses performing strongly, driven by good share growth and
pricing
-- Full year EPS to benefit from a reduced currency translation tailwind of 5%
Second half organic volume is expected to benefit from the
phasing of shipments in a number of key markets, including
Pakistan, partly offset by the impact of the significant excise
increase in the GCC. We anticipate full year industry volume to be
down around 4%, with BAT again outperforming the industry, driven
by continued good share growth.
Organic revenue in the second half benefits from growing NGP
revenues and good overall pricing in most markets, although organic
price mix is expected to moderate in H2 due to downtrading in the
GCC and a more difficult pricing environment in some markets,
notably in Russia. Full year organic price mix is expected to
remain within historic ranges.
Trading in our markets continues to reflect the trends discussed
at the Interim Results in July and our more recent Capital Markets
Day, with Canada, Germany, Romania, Bangladesh and Ukraine
performing well and conditions remaining challenging in Russia,
GCC, Brazil, South Africa and Malaysia.
The national rollout of glo in Japan is complete and glo has
continued its excellent performance with national share now at
2.7%. glo has also been successfully launched in Canada,
Switzerland, South Korea and Russia and is now available in a total
of five countries. In vapour, our share in Western Europe continues
to grow and the performance of VUSE in the US remains strong.
FX
If exchange rates remained unchanged for the balance of the
year, the translational currency tailwind would be expected to be
6% on operating profit. The transactional headwind remains around
2% on operating profit.
Full year EPS is expected to benefit from a translational
foreign exchange tailwind of 5%.
Changes to reporting structure
Following the acquisition of RAI, the Group will consolidate the
results of RAI as a wholly owned subsidiary from the acquisition
date.
For clarity, the Group will show the 2017 results under the
existing regional structure (EEMEA, ASPAC, AMERICAS, WESTERN EUROPE
and the USA) to enable an organic comparison.
To enable a like-for-like comparison of performance in 2018, the
Group will also show 2017 results under the new regional structure
(EUROPE AND NORTH AFRICA, ASIA PACIFIC AND MIDDLE EAST, AMERICAS
AND SUB-SAHARAN AFRICA and the USA), including the impact of IFRS15
and as though the Group had owned RAI from 1 January 2017.
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 / Stephanie Brassinne
+44 (0) 20 7845 1180 / 1519/ 2012
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", "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 failure to realize
contemplated synergies and other benefits from mergers and
acquisitions; the effect of mergers, acquisitions and divestitures
on BAT's operating results and businesses generally; 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 BAT'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; 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; the ability to enhance cash generation and
pay dividends 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 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.
Additional information concerning these and other factors can be
found in BAT's and Reynolds American Inc.'s ("RAI") filings with
the U.S. Securities and Exchange Commission ("SEC"), including
RAI'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
TSTTTBPTMBABBBR
(END) Dow Jones Newswires
December 13, 2017 02:00 ET (07:00 GMT)
British American Tobacco (LSE:BATS)
Historical Stock Chart
From Mar 2024 to Apr 2024
British American Tobacco (LSE:BATS)
Historical Stock Chart
From Apr 2023 to Apr 2024