By By Anthony O. Goriainoff
British American Tobacco is set to announce its first-half 2023 financial results on Wednesday. Let’s take a look at what you need to know:
Revenue Expectations:
The company-compiled revenue consensus for the period stands at £13.32 billion ($17.08 billion), compared to reported revenue of £12.87 billion the previous year. In June, the company stated that its revenue performance would be stronger in the second half, with reported growth influenced by the timing of the transfer of Russian and Belarusian businesses, which is expected to conclude in 2023.
Key Factors to Watch:
New Categories Revenue:
The consensus revenue for the new categories segment is projected to be £1.57 billion. In the first half of 2022, the company reported new categories revenue of £1.28 billion.
Russia:
The successful transfer of British American Tobacco’s Russian assets in the second half will be a significant development to monitor. Jefferies analyst Owen Bennett suggests paying attention to any updates on the timing, as well as the potential seizure of assets by Russia following recent incidents involving Danone and Carlsberg.
Guidance:
Analysts at Citi anticipate that the company’s management will affirm their guidance of over 3% to over 5% organic constant currency revenue growth for the year. Beyond 2023, British American Tobacco is expected to reiterate its goal of achieving constant currency group revenue growth of over 3% to over 5%, reaching £5 billion in new category revenue and attaining profitability by 2024.
Comments