TIDMBATS
RNS Number : 0388M
British American Tobacco PLC
12 September 2019
British American Tobacco p.l.c.
12 September 2019
Simplifying BAT to drive New Category growth
British American Tobacco p.l.c. announces an important step in a
programme to simplify its business and create a more efficient,
agile and focused BAT. This will ensure the company is better
placed to meet ever evolving consumer needs and deliver savings
that can be reinvested in the growth of its portfolio of new
categories such as vapour, tobacco heating products and oral
tobacco.
To enable better focus on key growth areas; faster decision
making; greater management accountability and the elimination of
duplicative activities, the proposals will:
- reduce management layers;
- create fewer larger more accountable business units;
- better leverage its Global Business Services activities; and
- simplify all key business processes and "ways of working."
The programme, which is planned to be substantially complete by
January 2020, envisages a reduction of around 2,300 roles globally.
With the focus on simplification and removal of management layers,
it is expected that over 20% of the senior roles in the
organisation will be affected.
A consultation process is now underway with all staff who will
be impacted.
Jack Bowles, Chief Executive said:
"Since taking on the role of Chief Executive five months ago, I
have been clear that I wanted to make BAT a stronger, simpler and
faster organisation and ensure a future fit culture. My goal is to
oversee a step change in New Category growth and significantly
simplify our current ways of working and business processes, whilst
delivering long-term sustainable returns for our shareholders. This
is a vital first move to help achieve these goals.
A programme of this significance involves decisions that will be
difficult for our people, but ultimately it is the right thing for
our business.
As a result, BAT will be better placed to deliver on our target
of generating GBP5 billion of revenues in New Categories by
2023/24."
Enquiries:
Press Office
+44 (0)20 7845 2888 (24 hours) | @BATPress
Investor Relations
Mike Nightingale / Rachael Brierley / John Harney
+44 (0)20 7845 1180 / 1519 / 1263
Forward looking statements
This announcement contains certain forward-looking statements,
including "forward-looking" statements made within the meaning of
Section 21E of the United States Securities Exchange Act of 1934.
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. These include
statements 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.
All such forward-looking statements involve estimates and
assumptions that are subject to risks, uncertainties and other
factors that could cause actual future financial condition,
performance and results to differ materially from the plans, goals,
expectations and results expressed in the forward-looking
statements and other financial and/or statistical data within this
announcement. 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; 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 inability to develop, commercialise and roll-out
Potentially Reduced-Risk Products; and changes in the market
position, businesses, financial condition, results of operations or
prospects of the Group.
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. 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 Group 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 2019 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.
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of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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