BAT Sees Weak Organic Results In H1, On Track To Meet FY24 Outlook; Sees Growth In FY26

(RTTNews) - British American Tobacco Plc (BATS.L, BTI) Tuesday said it expects first-half revenue and adjusted profit from operations to be down by low-single digits on an organic, constant currency basis.

However, the firm is on track to deliver its fiscal 2024 guidance of low-single digit growth in revenue and adjusted profit from operations on an organic, constant currency basis.

In its trading update, the company said its first-half delivery is in line with expectations, and expects growing momentum in the second half.

In Combustibles, U.S. commercial plans continue to gain traction despite a challenging macro-economic backdrop.

For full year 2024, global tobacco industry volume is expected to be down around 3%.

Tadeu Marroco, Chief Executive, said, "As previously highlighted, we expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our U.S. commercial actions, as well as the phasing of new launches. Our guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and continued lack of effective enforcement against the growing illicit vapour segment."

Looking further ahead, the company projects to progressively improve performance to deliver 3-5% revenue, and mid-single digit adjusted profit from operations growth on an organic constant currency basis by 2026.