British American Tobacco ( (BTI) ) has released its Q4 earnings. Here is a breakdown of the information British American Tobacco presented to its investors.
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British American Tobacco (BAT) is a leading global consumer goods company that manufactures and sells tobacco and nicotine products, including cigarettes and smokeless products, with a focus on innovation and sustainable practices.
In its 2024 earnings report, BAT highlighted its strategic shift towards a smokeless future, with a commitment to transforming its business model by predominantly focusing on smokeless products by 2035. The report noted a challenging year marked by strategic investments and external factors affecting revenue.
Key financial highlights for 2024 include a slight organic revenue increase of 1.3% at constant rates, primarily driven by an 8.9% rise in New Categories revenue. Despite a reported revenue decline of 5.2%, attributed to the sale of operations in Russia and Belarus and foreign exchange headwinds, the company reported a profit from operations of £2.7 billion, recovering from a significant loss in the previous year. BAT made notable strides in its New Categories, particularly in Modern Oral products, and maintained strong cash flow with a free cash flow of £7.9 billion.
The company remains focused on enhancing shareholder value through a progressive dividend growth of 2.0% and an ongoing share buy-back program. Looking ahead, BAT acknowledges potential regulatory challenges in markets like Bangladesh and Australia but remains optimistic about achieving its mid-term growth targets by 2026, driven by continued innovation and investment in New Categories.
