BAT: results in line with expectations in 2024

(CercleFinance.com) - BAT reports sales of £25.
86bn in 2024, down 5.2% on the same period a year earlier (+1.3% on an organic adjusted basis).

Sales of new category products (related to vaping) reached £3.43bn, up 2.5% y-o-y (+8.9% on an organic adjusted basis).

Against this backdrop, BAT reported operating profit of £2,736m (a far cry from the £15.7bn loss recorded a year earlier) and adjusted profit of £11.89bn, up 1.4% on an organic adjusted basis.

Adjusted EPS of 362.5 pence, an organic adjusted increase of +3.6%.

2024 has been a year of investment, with results in line with our forecasts. We continued our transformation this year, adding 3.6 million adult consumers (for a total of 29.1 million) of our smokeless products, which now account for 17.5% of group sales, an increase of 1.0 percentage points on FY 2023, it says.

BAT estimates that the global tobacco industry should see volumes decline by around 2% in 2025.

Sales should grow by around 1% at constant rates, despite higher taxes in Bangladesh and new regulations in Australia. Adjusted operating income should grow by 1.5% to 2.5% (excluding Canada), with an estimated negative currency impact of 1.5%.

The company intends to continue deleveraging to achieve a net debt/adjusted EBITDA ratio of 2.0-2.5x by 2026, and maintains its commitment to dividend growth as well as a £900m share buyback.


Copyright (c) 2025 CercleFinance.com. All rights reserved.