BAT FY18 Profit Plunges, Says Confident Of FY19; Names New Finance Director

(RTTNews) - British American Tobacco plc (BATS.L, BTI) reported Thursday that its fiscal 2018 profit before taxation was 8.35 billion pounds, compared to last year's revised profit of 29.53 billion pounds.

Earnings per share fell 85.6 percent to 263.2 pence from 1,827.6 pence last year. The prior year results included a one-off gain related to the acquisition of RAI of 23.3 billion pounds and a 9.6 billion pounds deferred tax credit due to the US tax reforms, both of which do not repeat in 2018.

Adjusted earnings per share were 296.7 pence, up 5.2%.

Profit from operations grew to 9.31 billion pounds from 6.41 billion pounds last year.

Revenues increased 25.2% to 24.49 billion pounds, driven by a 3.3% growth in volume from cigarettes and THP, which was largely due to the inclusion of RAI as a wholly-owned subsidiary, as well as pricing.

Revenue increased 25%, with revenue from the Strategic Portfolio higher by 49%;

Adjusted revenue on a representative basis dropped 2.3 percent to 24.31 billion pounds, but grew 3.5% at constant rates, driven by robust cigarette price mix and growth in THP and vapour revenue of 95%.

Further, dividend per share increased 4% to 203.0p, payable in four quarterly dividend payments of 50.75p per share.

Looking into 2019, the company said it is confident of another year of high single figure adjusted constant currency earnings growth and this confidence is reflected in the Board's proposal to increase the dividend by 4%. Further, the company said the decision by the Quebec Court of Appeal, with regards to the 2015 award of C$15.6 billion against a Group subsidiary, Imperial Tobacco Canada - ITCAN, and others, of which ITCAN's share was C$10.4 billion in relation to the Quebec Class Action is due to be released on 1 March 2019.

Separately, British American Tobacco announced the appointment of Tadeu Marroco as Finance Director, succeeding Ben Stevens, who has informed the Company of his intention to step down on reaching the age of 60. He will retire from the Board on August 5.

Stevens resigns after 30 years with the Company and 11 years as Finance Director.

Marroco is currently Director, Group Transformation. Prior to his appointment on August 5, he will be appointed as Deputy Finance Director with effect from March 1, in addition to his current role.