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First Half Pre-Close Trading Update 2017
British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")
14 JUNE 2017
BRITISH AMERICAN TOBACCO p.l.c.
FIRST HALF PRE-CLOSE TRADING UPDATE 2017
In 2014 the requirement for UK listed companies to produce an Interim Management Statement ("IMS") was
removed. In July 2016, it was announced that British American Tobacco p.l.c. would no longer publish a
quarterly IMS, and would instead issue short trading updates prior to start of the closed periods for the Interim
and the Full Year results.
Trading update - ahead of closed period commencing 27 June 2017
The business continues to perform very well and trading is in line with our expectations
Continued market share growth, driven by the Global Drive Brands (GDBs)
Profit growth expected to be weighted to the second half of the year, due to the phasing of volume
shipments, Next Generation Product (NGP) investments and marketing spend
First half EPS is expected to benefit from a significant currency translation tailwind of around 14%
The business continues to perform very well, in line with expectations.
First half revenue is expected to benefit from good pricing. As highlighted in February, first half volumes are
lapping a strong prior year comparator and will be impacted by the phasing of shipments in a number of key
markets, including Pakistan. Full year volume is expected to outperform the industry, which we anticipate will be
down around 4%.
We expect our market share to continue to grow, driven by the GDBs.
Trading in our key markets continues to reflect the trends discussed at the Preliminary Results in February with
Canada, Romania, Bangladesh and Ukraine performing well and conditions remaining challenging in Brazil, South
Africa, Malaysia, France and the UK.
The performance of glo in Sendai, Japan continues to exceed our expectations and we are on track for further
Japanese and international rollout in the second half. In vapour, our share growth in Western Europe continues
and we are making encouraging progress with the rollout of Vype Pebble. A city test of Vype e-Pen III is on track
for Q4.
As previously stated, profit growth is expected to be weighted to the second half of the year, mainly due to the
timing of volume shipments, as well as the phasing of NGP investments and marketing spend.
If exchange rates stayed the same for the remainder of the year, there would be an adverse transactional impact
on operating profit of 2% for both the first half and the full year. For translation, this would be a tailwind on
operating profit of approximately 13% for the half year and 7% for the full year.
First half EPS is expected to benefit from a significant translational foreign exchange tailwind of around 14%.
For further information, please contact:
British American Tobacco Press Office
+44 (0) 20 7845 2888 (24 hours) | @BATPress
British American Tobacco Investor Relations
Mike Nightingale / Rachael Brierley / Sabina Marshman
+44 (0) 20 7845 1180 / 1519/ 1781
Disclaimers
This announcement does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or
dispose of any British American Tobacco p.l.c. shares or other securities. This announcement contains certain
forward-looking statements regarding our intentions, beliefs or current expectations concerning, amongst other
things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic
and business circumstances occurring from time to time in the countries and markets in which the Group
operates. It is believed that the expectations reflected in this announcement are reasonable but they may be
affected by a wide range of variables that could cause actual results to differ materially from those currently
anticipated. Past performance is no guide to future performance and persons needing advice should consult an
independent financial adviser. The forward-looking statements reflect knowledge and information available at
the date of preparation of this announcement and the Company undertakes no obligation to update or revise
these forward-looking statements. Nothing in this document should be construed as a profit forecast. Readers
are cautioned not to place undue reliance on such forward-looking statements.
Sponsor: UBS South Africa (Pty) Ltd
Date: 14/06/2017 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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