British American Tobacco (BAT) said it remains on track to deliver revenue growth of 3–5% and adjusted profit from operations growth of 4–6% for the financial year ending 31 December 2026, with both expected to be at the lower end of the ranges.
The JSE- and London-listed group, in an announcement about a capital markets day held for institutional investors and analysts in Winston-Salem, North Carolina, on Tuesday, said it expected adjusted diluted earnings per share growth to be towards the middle of the 5–6% range. All the forecasts were made assuming constant currency rates.
Based on current spot exchange rates, the group expects translational foreign-exchange headwinds of 2–2.5% on full-year adjusted diluted earnings-per-share growth.
Winston-Salem has been home to the Reynolds American business for more than 150 years. Reynolds American is a wholly owned subsidiary of BAT.
“As part of Horizon 2030, the group’s strategic plan, we expect to grow New Category revenue by the mid-teens through to 2030. We also expect to grow the New Category contribution margin to reach at least 30% by 2030, reflecting our focus on premiumisation, improving mix, increasing scale and more targeted allocation,” BAT’s directors said.
They said the aim of the capital markets day was to showcase how the group’s multi-category portfolio and differentiated capabilities, including consumer insights, its science and innovation ecosystem, global distribution and retail reach, regulatory expertise and digital capabilities, were translating into competitive advantage.
BAT’s shares fell relatively sharply by 2.8% on the JSE on Tuesday morning to R894.77. The price was little changed from R912.18 a year earlier, but the shares had fallen by more than 16% since 18 May, when the share price was R1,098.50.
edward.west@nationalMG.co.za
The National