Thursday 27 February 2020 8:30 am

British American Tobacco boosts revenue to £25.8bn

British American Tobacco today said its revenue rose nearly six per cent to £25.8bn last year.

The tobacco giant reported adjusted diluted earnings per share of 323.8p, which was ahead of expectations and represented growth of 8.4 per cent at constant currency.

Reported earnings per share was 12 per cent below Bloomberg’s consensus after a number of adjustments.

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Profit fell three per cent to just over £9bn.

Adjusted profit rose 7.6 per cent to £11.1m and adjusted cash generated fell 6.8 per cent to £6.8bn.

Adjusted net debt fell nearly four per cent to £41.7bn.

The company booked a number of charges in 2019 which hit profit including £436m related to its Canadian operations, £264m on its restructuring programme and £202m in relation to a Russian excise dispute.

Chief executive Jack Bowles said: “In September, we announced a significant restructuring and simplification programme, which is largely complete. 

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“This will create the capabilities and resources to continue investing in new categories and allow us to deliver on our financial commitments. 

“Looking into 2020, we are confident of another year of high single figure adjusted constant currency earnings growth.”

Liberum analysts said:“The dividend per share growth of only 3.6 per cent is light versus history but looks sensible in light of the debt situation.”

And added: “The guidance statement looks reasonably upbeat and in-line with what we expect from the company.”

Shares rose just under one per cent this morning to 3,247p.

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