Full Year 2024 British American Tobacco plc Earnings Call Transcript
Key Points
- British American Tobacco PLC (BTI) reported a 1.3% growth in group revenue and an 8.9% increase in new category revenue, indicating strong performance in emerging product lines.
- The company achieved a 3.6% increase in diluted EPS, reflecting effective cost management and operational efficiency.
- Smokeless products now account for 17.5% of group revenue, with a significant increase in consumer base, showcasing successful diversification efforts.
- The company has initiated a sustainable share buyback program and announced a 2% growth in dividends, demonstrating commitment to shareholder returns.
- British American Tobacco PLC (BTI) has made significant progress in reducing leverage to 2.4 times, enhancing financial flexibility and resilience.
- The company faced challenges in the US market, with a 3.4% decline in revenue due to macroeconomic pressures and illicit Vapour products.
- Vapour revenue fell by 2.5%, impacted by weak enforcement against illicit single-use vapes in the US and Canada.
- The company anticipates significant headwinds in Bangladesh and Australia, which are expected to impact 2025 group revenue growth by 1% and APFO growth by close to 2%.
- In Australia, new tobacco regulations and excise increases are expected to further accelerate legal industry volume decline.
- The company is dealing with a GBP6.2 billion provision for Canada's CCAA proposed plan, reflecting ongoing legal and regulatory challenges.
Good morning everyone. I'm delighted to welcome you to our 2024 preliminary results presentation. With me this morning is Soraya Benchikh, CFO; and Victoria Buxton, group Head of Investors Relations. I will begin with our transformation highlights and the progress we have made during our investment year. Soraya will then take you through our financial results in more detail before I return to talk more about our performance outlook ahead of Q&A. With that, I would like to draw your attention to the disclaimers on slide 2 entry.
Let's begin by looking at the positive transformation momentum we are driving, starting with some highlights. 2024 was a key moment in our transformation journey as we sharpened our execution, enabling us to navigate near term market challenges and deliver an improved performance in the second half. We have delivered group results in line with expectations which Soraya will talk about in more detail.
Smokeless accounts for 17.5% of group revenue, up 1-percentage-points
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