British American Tobacco (BATS) Trading Update summary

Leadership and Strategic Priorities

• New CFO Soraya Benchikh rejoined, bringing extensive global and financial experience.

• Focus on managing multi-category business complexity and driving balanced top and bottom line growth.

• Strategic agenda emphasizes quality growth, sustainable results, and enhanced shareholder returns.

Financial Performance and Outlook

• On track to meet FY24 guidance, expecting low single-digit organic revenue and adjusted profit growth in 2024, with stronger H2 performance due to innovation, inventory phasing, and U.S. commercial actions.

• H1 revenue and adjusted profit expected to decline by low single digits due to U.S. investments and macro pressures.

• Group cigarette volume share in key markets up 30 bps, with robust pricing and share gains in AME and APMEA.

• Technical guidance includes a global tobacco industry volume decline of ~3% and a c.2% transactional FX headwind.

Category and Regional Highlights

• New categories now deliver over £3bn in revenue and are profitable two years ahead of target.

• Premium segment in U.S. shows sequential volume share improvement, with Lucky Strike as the fastest-growing brand.

• EMA and APMEA regions deliver robust pricing and share gains, with key markets including Germany, Romania, Pakistan, and Mexico.

• Group cigarette volume share in key markets up 30 bps.