BAT Releases 2024 Fiscal Year Trading Update on December 11th

Dec.11.2024
BAT Releases 2024 Fiscal Year Trading Update on December 11th
BAT announces strong growth in new product categories and traditional tobacco revenues for the second half of 2024 fiscal year.

On December 11, British American Tobacco (BAT) released a trading update for the fiscal year ending 2024. The company stated that the accelerated growth in the second half of 2024 was in line with expectations, primarily driven by innovation in new product categories. Revenue from new product categories and traditional tobacco is expected to increase in the second half of the year compared to the first half.


BAT expects that by the end of 2024, the cash conversion rate will exceed 90%, while the leverage ratio will be within the target range of 2.0-2.5 times. Additionally, they have expressed support for the Canadian Companies' Creditors Arrangement Act (CCAA) and are hopeful to reach a conclusion that is beneficial for all stakeholders.


In the traditional tobacco industry, the United States' business actions continued to gain momentum in the second half of the year; in the AME and APMEA regions, its market share continued to grow. Investments in the first half of the year in the US business actions and wholesale inventory adjustments drove an increase in organic sales volume and financial performance in the traditional tobacco business in the second half of the year. Despite a slight decrease in value share due to the impact of the US market's geographic mix, volume share increased by 20 basis points in key markets.


The performance of new business categories is also improving. Vuse e-cigarettes maintain a leading market share globally, with a 40.3% share in key markets (50.7% share in tracked channels in the U.S.). Meanwhile, the innovative product line of the glo brand is showing signs of accelerated growth in the second half of the year, with new products like glo Hyper Pro driving sales growth. The Velo brand continues to experience strong growth in markets outside the U.S., solidifying its position as a leader in the oral market.


BAT expects a decrease in sales of approximately 2% in 2024, with organic revenue and profit growth forecasted to be in the low single digits. Planned capital expenditure is around 600 million pounds, and net financial expenses are expected to be 1.6 billion pounds, impacted by fluctuations in exchange rates and interest rates.


Notice

1. This article is provided exclusively for professional research purposes related to industry, technology and policy. Any reference to brands or products is made solely for the purpose of objective description and does not constitute an endorsement, recommendation, or promotion of any brand or product.

2. The use of nicotine products, including but not limited to cigarettes, e-cigarettes, and heated tobacco products, is associated with significant health risks. Users are required to comply with all relevant laws and regulations in their respective jurisdictions.

3. This article is strictly restricted from being accessed or viewed by individuals under the legal age.

Copyright

This article is either an original work by 2Firsts or a reproduction from third-party sources with the original source clearly indicated. The copyright and usage rights of this article belong to 2Firsts or the original source. Unauthorized reproduction, distribution, or any other unauthorized use of this article by any entity or individual is strictly prohibited. Violators will be held legally responsible. For copyright-related matters, please contact: info@2firsts.com

AI Assistance Disclaimer

This article may have utilized AI to enhance translation and editing efficiency. However, due to technical limitations, errors may occur. Readers are advised to refer to the sources provided for more accurate information.

This article should not be used as a basis for any investment decisions or advice, and 2Firsts assumes no direct or indirect liability for any errors in the content.

South Korea Report: Heated Tobacco Sales Soar 2,500-Fold Globally Over a Decade, Prompting Urgent Call for Stricter Regulations
South Korea Report: Heated Tobacco Sales Soar 2,500-Fold Globally Over a Decade, Prompting Urgent Call for Stricter Regulations
The Korea Health Promotion Institute has called for stronger regulation of e-cigarettes and other novel tobacco products, emphasizing the need to protect minors from the influence of tobacco advertising.
May.21 by 2FIRSTS.ai
South Korean Social Organizations Support Lawsuits Against Tobacco Companies and Call for the Establishment of a Smoking Damage Fund
South Korean Social Organizations Support Lawsuits Against Tobacco Companies and Call for the Establishment of a Smoking Damage Fund
The Korea Association of the Elderly Strongly Backs the National Health Insurance Corporation’s Tobacco Litigation, Calling on Tobacco Companies to Establish a Smoking Damage Fund to Fulfill Their Social Responsibilities.
Jun.11 by 2FIRSTS.ai
OXVA Partners with U.S. Chip Firm to Launch Next-Gen XLIM PRO 2 DNA
OXVA Partners with U.S. Chip Firm to Launch Next-Gen XLIM PRO 2 DNA
Vaping brand OXVA has partnered with U.S.-based chipmaker Evolv to develop a pod device powered by Evolv’s DNA chip. The enhanced temperature control feature is designed to prevent dry hits, a common issue in pod systems.
May.20 by 2FIRSTS.ai
U.S. FDA Updates PMTA and SE Application Processes, Releases New Submission Forms and Validation Tools
U.S. FDA Updates PMTA and SE Application Processes, Releases New Submission Forms and Validation Tools
The U.S. FDA has released six new forms for submitting applications for new tobacco products, covering both the Premarket Tobacco Product Application (PMTA) and Substantial Equivalence (SE) pathways. Starting July 6, 2025, all applicants will be required to use the updated forms, as previous versions will no longer be accepted.
Jun.09 by 2FIRSTS.ai
ZYN Refreshes Packaging and Expands Line-Up in UK with Two New Flavours and Lower-Strength Options
ZYN Refreshes Packaging and Expands Line-Up in UK with Two New Flavours and Lower-Strength Options
Philip Morris International (PMI) has refreshed its ZYN nicotine pouch brand in the UK with a new packaging design and a range of flavour upgrades. The revamp includes the launch of an ultra-low strength 1.5mg option, as well as two new flavours: Spearmint and Apple Mint.
Jun.09 by 2FIRSTS.ai
Brazilian police intercept smuggled electronics, driver arrested, goods seized
Brazilian police intercept smuggled electronics, driver arrested, goods seized
Brazil PRF intercepts smuggling of 5,340 e-cigarettes and smart devices in Paiçandu, driver arrested, goods handed to federal tax authorities.
Apr.21 by 2FIRSTS.ai