British American Tobacco (BATS)

[77ss]

British American Tobacco has said it is suspending its operations in Ukraine to ensure the "safety and wellbeing" of its staff, but its work in Russia will continue.

It said it "always complies with relevant regulation and legislation wherever we operate, and we are aligned with all international sanctions".

https://www.bbc.co.uk/news/business-60571133

Those of you who are shareholders in BATS (and thus partial owners) may wish to ponder on whether you find this acceptable - and whether a letter to the board might be appropriate.

Who exactly are you targeting?

Do you think Putin is going to miss his fags?

Are you aiming at the Russian factory workers - hoping that they will lose their jobs?

Do you think that depriving Russian smokers of one of their few comforts is ethical?

Pointless posturing in my view.

[MrFoolish]

British American Tobacco has said it is suspending its operations in Ukraine to ensure the "safety and wellbeing" of its staff, but its work in Russia will continue.

It said it "always complies with relevant regulation and legislation wherever we operate, and we are aligned with all international sanctions".

https://www.bbc.co.uk/news/business-60571133

Those of you who are shareholders in BATS (and thus partial owners) may wish to ponder on whether you find this acceptable - and whether a letter to the board might be appropriate.

Who exactly are you targeting?

Do you think Putin is going to miss his fags?

Are you aiming at the Russian factory workers - hoping that they will lose their jobs?

Do you think that depriving Russian smokers of one of their few comforts is ethical?

Pointless posturing in my view.

Wow, I seem to have touched a nerve there. Big holding is it?

[idpickering]

Russia Business Update and Revised Guidance

At BAT we pride ourselves on our values and our ethos. We join together as one company to call on all leaders and governments to find a peaceful and sustainable resolution to this tragic conflict through the power of dialogue and diplomacy.

Building on our announcement of 9th March 2022, we have now completed the review of our presence in Russia. The context is highly complex, exceptionally fast-moving and volatile.

We have concluded that BAT's ownership of the business in Russia is no longer sustainable in the current environment.

Today, we have initiated the process to rapidly transfer our Russian business in full compliance with international and local laws. Beyond continuing to pay our 2,500 employees, we will do our utmost to safeguard their future employment.

Upon completion, BAT will no longer have a presence in Russia.

Following our decision today, and in light of the continuing uncertainty related to Ukraine and Russia and the possible indirect impact on the rest of the Group, we consider it prudent to revise our guidance for full year 2022. We now expect constant currency Group revenue growth of 2% to 4% and Mid-Single Figure constant currency adjusted diluted EPS growth. In 2021, Ukraine and Russia accounted for 3% of Group revenue and a slightly lower proportion of adjusted profit from operations.

https://www.investegate.co.uk/british-a ... 55025529E/

[idpickering]

TRANSACTION IN OWN SHARES

British American Tobacco p.l.c. (the "Company") announces that in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 28 April 2021 it purchased the following number of its ordinary shares of 25 pence each ("shares") from UBS AG as part of its buyback programme announced on 11 February 2022.

https://www.investegate.co.uk/british-a ... 00035166F/

[idpickering]

TRANSACTION IN OWN SHARES

British American Tobacco p.l.c. (the "Company") announces that in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 28 April 2021 it purchased the following number of its ordinary shares of 25 pence each ("shares") from UBS AG as part of its buyback programme announced on 11 February 2022:

https://www.investegate.co.uk/british-a ... 00036645F/

So the share buyback continues. I hold BATS, and am glad I do. They're a well run company imho. They make up 5.2% in capital value terms of my 28 share HYP. I might just raise my bet on them a bit more in the near future?

Ian.

[idpickering]

Transaction in Own Shares.

British American Tobacco p.l.c. (the "Company") announces that in accordance with the authority granted by shareholders at the Company's Annual General Meeting on 28 April 2022 it purchased the following number of its ordinary shares of 25 pence each ("shares") from UBS AG as part of its buyback programme announced on 11 February 2022:

https://www.investegate.co.uk/british-a ... 00061499N/

Ian.

[idpickering]

2022 First Half Pre-Close Trading Update.

https://www.investegate.co.uk/british-a ... 00022269O/

Ian.

[idpickering]

Half-year Report.

Dividend of 54.45p ps, Ex Div 29 Sep 22, paid 10 Nov 22.

https://www.investegate.co.uk/british-a ... 00138369T/

Ian.

[idpickering]

Share Buyback- Non-Discretionary Agreement.

Further to the share buyback programme announced by British American Tobacco p.l.c. (the "Company") on 11 February 2022 to buy back up to £2 billion BAT ordinary shares (the "Programme"), the Company today announces that it has entered into an agreement with its broker UBS AG (the "Broker") on a non-discretionary basis, to purchase shares during the period commencing on 3 October 2022 and ending no later than 31 December 2022.

The Broker will make its trading decisions in relation to the Company's securities independently of, and uninfluenced by, the Company.

The purpose of the Programme is to reduce the share capital of the Company. The Company intends to keep the purchased shares in Treasury.

Any purchases of ordinary shares by the Company in relation to this announcement will be made in accordance with certain pre-set parameters set out in the terms of the Broker's engagement, the Company's general authority to repurchase shares granted by its shareholders at the Company's 2022 AGM, the Market Abuse Regulation 596/2014 as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended) and Chapter 12 of the Financial Conduct Authority's Listing Rules.

https://www.investegate.co.uk/british-a ... 00122412B/

Ian.

[idpickering]

2022 Second Half Pre-Close Trading Update.

o Revenue growth of 2% to 4% at constant currency rates
o Mid-single figure adjusted diluted EPS growth at constant currency, including a transactional
FX headwind of c.2%
o FY global tobacco industry volume expected to be c. -2% (prev. c.-3%), driven by continued
post COVID recovery in emerging markets
o Net finance costs above £1.6bn, driven by rising interest rates and USD strength
o Translation FX tailwind of c.7%2on adjusted diluted EPS growth for FY 2022
o FY operating cash conversion in excess of 90% of adjusted profit from operations
o We expect leverage for the full year at the high end of our corridor of 2-3x adjusted net debt adjusted EBITDA4
, applying current exchange rates2 until year end.

https://www.bat.com/group/sites/UK__9D9 ... Update.pdf

RNS here; https://www.investegate.co.uk/british-a ... 00049822I/

Ian.

[Dod101]

Thanks. That does not sound very upbeat I must say.

Dod

[idpickering]

Thanks. That does not sound very upbeat I must say.

Dod

You're welcome Dod. The market seems to agree with you with the BATS SP being down close to 2% as I type. This short term movement in BATS SP doesn't bother me to much to be honest. I'm happy to continue holding onto my BATS shares for the long term.

Ian.

[idpickering]

Dividend Finalisation Information.

On 11 February 2022, the Company announced that the Board had declared an interim dividend of 217.8p per ordinary share of 25p, payable in four equal quarterly instalments of 54.45p per ordinary share in May 2022, August 2022, November 2022 and February 2023.

The February 2023 Dividend will be payable on 2 February 2023 to shareholders registered on either the UK main register or the South Africa branch register on 23 December 2022 (the record date).

https://www.investegate.co.uk/british-a ... 00032802J/

Ian.

[idpickering]

Management Board Changes & New Regional Structure.

Following a strategic review of its regions, business units and global functions, BAT will implement a number of senior management changes and a new regional structure to both streamline, and accelerate, the transformation of its business.

Since the launch of the purpose-led A Better Tomorrow™ strategy in 2020, BAT has made significant progress in building a New Categories consumer base, growing powerful global brands and developing organisational capabilities for the future.

The new structure will increase the efficiency of BAT's geographical footprint, optimise market prioritisation and will be based on fewer, larger business units, enabling even greater collaboration and accelerated decision-making across BAT.

Jack Bowles, BAT Chief Executive commented:

"As our transformation journey towards our strategic milestones gathers pace, we need to further sharpen our operating model, streamline our business to drive agility, and continue to enhance organisational capabilities. As part of our commitment to building A Better Tomorrow, the changes we have announced today will drive increased focus, accelerate our transformation and fuel growth as we strengthen the foundations of our future as a category-led enterprise."

Following this strategic review, underpinned by distinct market-archetypes, the number of regions will be reduced from four to three, and the number of business units from 16 to 12[1], while also accelerating the company's market exit plans.

BAT's new structure will consist of three regions:

§ USA (Reynolds American Inc.)

§ Americas & Europe (AME)

§ Asia Pacific, Middle East & Africa (APMEA)

In addition, two new Management Board roles will be created in order to ensure clarity of ownership, accountability and focus: Chief Transformation Officer and Director, Combustibles.

The Chief Transformation Officer will be responsible for driving faster transformation, accelerating greater capability build in key areas and enabling an even faster, simpler and more agile organisation. The role of Director, Combustibles will lead the focus on driving value from combustibles to fuel further investment in New Categories.

These structural changes and the following appointments and other changes reflect the quality, depth and diversity of management within BAT and will take effect from 1 April 2023:

https://www.investegate.co.uk/british-a ... 00103228O/

Ian (I hold).

[idpickering]

Final Results.

• Revenue up 2.3%** driven by New Category growth and pricing

• Combustible revenue underpinned by price/mix of +4.6%

• Global Cigarette value share flat, US value sh are up 10 bps

• D elivered £1.9bn annualised Quantum savings, well ahead of original £1bn target, with £629m in 2022

• Adjusted profit from operations up 4.3%** absorbing a negative transactional FX impact of 1.5%

• Adjusted operating margin up 90 bps**

• Adjusted diluted EPS up 5.8%**

• Operating cash flow conversion of 100%

• Adjusted net debt/Adjusted EBITDA 2.89x

• 6.0% dividend growth

And later;

DIVIDENDS

The Board has declared an interim dividend of 230.9p per ordinary share of 25p, for the year ended 31 December 2022, payable in four equal quarterly instalments of 57.72p per ordinary share in May 2023, August 2023, November 2023 and February 2024. This represents an increase of 6.0% on 2021 (2021: 217.8p per share), and a payout ratio, on 2022 adjusted diluted earnings per share, of 62.2%.

The quarterly dividends will be paid to shareholders registered on either the UK main register or the South Africa branch register and to holders of American Depositary Shares (ADSs), each on the applicable record dates set out under the heading 'Key Dates' below.

https://www.investegate.co.uk/british-a ... 03053788P/

Ex div 23 mar 23, paid 03 May 23.

Ian (I hold).

[Dod101]

That's the way I like it. Steady increase in the dividend backed by good results.

Dod

[Golam]

That's the way I like it too. How is the subsequent 5% drop in SP explained ?

[idpickering]

I very much agree with the previous two posts. Steady as she goes is fine by me.

The 6% downturn in the BATS SP as I type is very overdone imho.

Ian.

[idpickering]

Notice of Annual General Meeting 2023.

The Company announces that it has published its Notice of Annual General Meeting 2023 (the "AGM Notice 2023") on its website. Ahead of the Annual General Meeting 2023 (the "AGM") to be held on 19 April 2023, the following documents are being mailed and made available to its shareholders (as applicable) today, 14 March 2023:

https://www.investegate.co.uk/british-a ... 00017950S/

Ian (I hold).

[MDW1954]

Moderator Message:
Off-topic discussion moved to Shares and Share Discussions. --MDW1954