British American Tobacco PLC

Latest Results (07.08.2024):

Revenue Decline

In the first half of 2024, British American Tobacco PLC reported a revenue decline of 8.2% to £12,340 million. This decrease was primarily driven by the sale of businesses in Russia and Belarus in September 2023 and translational foreign exchange headwinds. On an organic constant rate basis, revenue was down 0.8%, mainly due to investment in U.S. commercial actions and negative impacts from wholesaler inventory movements.

Profit from Operations

British American Tobacco PLC's reported profit from operations for the first half of 2024 decreased by 28.3%, with the reported operating margin down 9.7 percentage points to 34.5%. This decline was attributed to higher amortization charges related to U.S. Combustibles brands and the lapping of a comparator inclusive of Russia and Belarus. Adjusted organic profit from operations was down 0.9% at constant FX, with the adjusted organic operating margin remaining flat at 44.9%.

Earnings Per Share

For the first half of 2024, British American Tobacco PLC reported a 13.8% increase in diluted earnings per share (EPS) to 200.3 pence. This rise was largely due to one-off credits related to ITC monetization and net finance costs. On an adjusted organic basis, diluted EPS increased by 1.3% at constant FX.

New Categories Performance

Revenue from New Categories for British American Tobacco PLC in the first half of 2024 was down 0.4%; however, on an organic constant rate basis, it was up 7.4%. The contribution from New Categories increased by £165 million on an organic, constant FX basis. Revenue from smokeless products now accounts for 17.9% of the Group's total revenue, up 1.4 percentage points compared to FY23.

Share Buy-Back Programme

British American Tobacco PLC has initiated a sustainable share buy-back programme, enabled by the partial monetization of its ITC stake. The company plans to repurchase £700 million worth of shares in 2024 and £900 million in 2025. This move is part of the company's strategy to enhance financial flexibility and continue rewarding shareholders with strong cash returns.