British American Tobacco PLC Trading Statement (9885H)
14 June 2017 - 4:00PM
UK Regulatory
TIDMBATS
RNS Number : 9885H
British American Tobacco PLC
14 June 2017
14 JUNE 2017
BRITISH AMERICAN TOBACCO p.l.c.
FIRST 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 start of the closed periods for the Interim and
the Full Year results.
Trading update - ahead of closed period commencing 27 June
2017
-- The business continues to perform very well and trading is in line with our expectations
-- Continued market share growth, driven by the Global Drive Brands (GDBs)
-- Profit growth expected to be weighted to the second half of
the year, due to the phasing of volume
shipments, Next Generation Product (NGP) investments and marketing spend
-- First half EPS is expected to benefit from a significant
currency translation tailwind of around 14%
The business continues to perform very well, in line with
expectations.
First half revenue is expected to benefit from good pricing. As
highlighted in February, first half volumes are lapping a strong
prior year comparator and will be impacted by the phasing of
shipments in a number of key markets, including Pakistan. Full year
volume is expected to outperform the industry, which we anticipate
will be down around 4%.
We expect our market share to continue to grow, driven by the
GDBs.
Trading in our key markets continues to reflect the trends
discussed at the Preliminary Results in February with Canada,
Romania, Bangladesh and Ukraine performing well and conditions
remaining challenging in Brazil, South Africa, Malaysia, France and
the UK.
The performance of glo in Sendai, Japan continues to exceed our
expectations and we are on track for further Japanese and
international rollout in the second half. In vapour, our share
growth in Western Europe continues and we are making encouraging
progress with the rollout of Vype Pebble. A city test of Vype e-Pen
III is on track for Q4.
As previously stated, profit growth is expected to be weighted
to the second half of the year, mainly due to the timing of volume
shipments, as well as the phasing of NGP investments and marketing
spend.
If exchange rates stayed the same for the remainder of the year,
there would be an adverse transactional impact on operating profit
of 2% for both the first half and the full year. For translation,
this would be a tailwind on operating profit of approximately 13%
for the half year and 7% for the full year.
First half EPS is expected to benefit from a significant
translational foreign exchange tailwind of around 14%.
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 / Sabina Marshman
+44 (0) 20 7845 1180 / 1519/ 1781
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. shares or other securities. This
announcement contains certain forward-looking 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. 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 Company undertakes no obligation to update or
revise these forward-looking statements. Nothing in this document
should be construed as a profit forecast. Readers are cautioned not
to place undue reliance on such forward-looking statements.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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