British American Tobacco PLC released a trading statement on December 11, 2024, confirming that they are on track to meet their financial year (FY) guidance. The statement highlights improved performance in the second half of the year, driven by innovation in New Categories, investments in US commercial actions, and the resolution of wholesaler inventory issues. The company expects to see better revenue growth in both New Categories and Combustibles in the second half compared to the first.
British American Tobacco PLC also reports strong cash conversion of over 90%, with leverage at the high end of their target range. They express support for the proposed Canadian CCAA settlement and remain committed to their goal of becoming a predominantly smokeless business by 2035. The statement includes an outlook for the future, highlighting continued progress in three key areas: Combustibles, improving New Category performance, and strong cash generation.
The company provides technical guidance for the full year 2024, expecting low-single-figure organic constant currency revenue and adjusted profit from operations growth, with transactional and translational FX headwinds. They anticipate strong cash returns for shareholders and remain focused on their mid-term guidance for 2026.