Wrap Text
Half-year report to 30 June 2019 JSE Short-Form Announcement
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")
1 August 2019
BRITISH AMERICAN TOBACCO p.l.c.
HALF-YEAR REPORT TO 30 JUNE 2019
JSE Short-Form Announcement
STRONG H1 RESULTS: ON TRACK FOR A GOOD YEAR
KEY FINANCIALS 30 June 2019 Change vs 30 June 2018
Current Current
rates rates
Revenue £12,170m +4.6%
Profit from operations £4,380m -1.3%
Basic earnings per share (EPS) 123.2p +4.6%
Headline earnings per share (HEPS) 123.5p +5.4%
Dividends per share (quarterly – see ‘Dividends’ section below) 50.75p +4.0%
Jack Bowles, Chief Executive said:
“We continue to deliver on our financial objectives with adjusted revenue and adjusted profit from
operations in line with our guidance, driven by a continued strong financial performance in combustibles.
Our New Categories portfolio continued to deliver encouraging growth. While there is much more to be
done, with new product launches planned for the second half of the year and the impact of a full year of
additional investment, we expect revenue growth to accelerate in the second half of the year. In 2019, we
are on track to be around the middle of our guidance range of 30-50% New Categories revenue growth
per annum, excluding the impact of translational foreign exchange.
As we create a stronger, faster, more agile organisation and deliver enhanced value growth from our
combustibles business, our adjusted operating margin grew 110 basis points (bps), alongside the
significant increase in investment in New Categories. We continue to generate cash and we maintain our
guidance of deleveraging by 0.4 times, excluding the effect of currency movements on our reported
results.
We are on track to deliver another good financial performance in 2019, including high single figure
adjusted earnings growth, at constant rates of exchange.
Highlights at constant rates of exchange unless otherwise stated include:
• Group adjusted revenue grew 4.1% driven by price/mix and growth in New Categories;
• Value share1 grew 10 bps, with volume share2 recovering to be in line with 2018, while reducing
portfolio complexity to realise efficiency gains;
• New Categories adjusted revenue grew 27% to £531 million with growth in all categories, and is on
track, in 2019, to reach the middle of the Group’s stated 30-50% growth range per annum through
2023/24;
• Adjusted profit from operations up 5.9%, with growth in all regions, and adjusted operating margin (at
current rates) higher by 110 bps while significantly increasing the investment in New Categories;
• In the US, adjusted revenue grew 3.7% and adjusted profit from operations was 11.2% higher, with the
roll-out of Velo progressing well and the US$400 million of synergies arising from the acquisition of RAI
expected to be fully realised in 2019, 12-months ahead of schedule;
• Adjusted diluted earnings per share (EPS) up 7.1%, or 8.8% at current rates; and
• Operating cash flow conversion of 66%, at current rates.”
1 – Value share represents customer sales price earned as a proportion of the industry total customer sales price. 2 - Key Market offtake volume share, as
independently measured by retail audit agencies (including Nielsen), shipment share estimates, and share of retail for the US business, based upon latest
available validated data. The Group’s Key Markets represent over 80% of the Group’s cigarette volume.
OTHER INFORMATION
DIVIDENDS
Declaration
On 28 February 2019, the Company announced that the Board had declared an interim dividend of 203.0p
per ordinary share of 25p, payable in four equal quarterly instalments of 50.75p per ordinary share in May
2019, August 2019, November 2019 and February 2020.
The May 2019 dividend was paid to shareholders on the UK main register on 8 May 2019, to shareholders
on the South Africa branch register on 9 May 2019 (due to a public holiday in South Africa on 8 May 2019)
and to holders of American Depositary Shares (ADSs) on 13 May 2019. The three remaining quarterly
dividends will be paid to shareholders registered on either the UK main register or the South Africa branch
register, and to holders of ADSs, each on the applicable record dates set out under the heading ‘Key
Dates’ below.
South Africa Branch Register
In accordance with the JSE Limited (JSE) Listing Requirements, the finalisation information relating to
shareholders registered on the South Africa branch register (comprising the amount of the dividend in
South African rand, the exchange rate and the associated conversion date) will be published on the dates
stated below, together with South Africa dividends tax information.
The quarterly dividends are regarded as ‘foreign dividends’ for the purposes of the South Africa Dividends
Tax. For the purposes of South Africa Dividends Tax reporting, the source of income for the payment of
the quarterly dividends is the United Kingdom.
Holders of ADSs
For holders of ADSs listed on the New York Stock Exchange (NYSE), the record dates and payment dates
are also set out below. The equivalent quarterly dividends receivable by holders of ADSs in US dollars will
be calculated based on the exchange rate on the applicable payment date. A fee of US$0.005 per ADS will
be charged by Citibank, N.A. in its capacity as depositary bank for the British American Tobacco American
Depositary Receipts (ADRs) programme in respect of each quarterly dividend payment.
General dividend information
The Group recognises interim dividends in the period that they are confirmed by the Directors. Therefore,
the results for the six-months ended 30 June 2019 reflect the first two quarterly dividends, of 50.75p per
ordinary share as these were confirmed in March and June, respectively.
For the six-months ended June 2019
Pence per
US$ per ADS
share
Quarterly payment 1 – paid in May 2019 50.75 0.659699
Quarterly payment 2 – to be paid in August 2019 50.75 *
101.50
* On 28 February 2019, a preliminary dividend announcement was made to the NYSE and other market
participants with an amount of US$0.674492 per ADS using the exchange rate on that date. The final ADS
amount will be announced on 8 August 2019, using the rate of exchange on that date.
Key Dates
In compliance with the requirements of the London Stock Exchange (LSE), the NYSE and Strate, the
electronic settlement and custody system used by the JSE, the following salient dates for the remaining
quarterly dividend payments are applicable. All dates are 2019, unless otherwise stated.
Event Payment No.2 Payment No.3 Payment No.4
Preliminary Announcement
(included declaration data 28 February 2019
required for JSE purposes)
Publication of finalisation 18 June* 23 September 12 December
information (JSE)
No removal requests 18 June to 23 September to 12 December to
permitted between the UK 28 June 4 October 27 December
main register and the South (inclusive) (inclusive) (inclusive)
Africa branch register
Last Day to Trade (LDT) cum 25 June 1 October 20 December
dividend (JSE)
Shares commence trading ex- 26 June 2 October 23 December
dividend (JSE)
No transfers permitted 26 June to 2 October to 23 December to
between the UK main register 28 June 4 October 27 December
and the South Africa branch (inclusive) (inclusive) (inclusive)
register
No shares may be 26 June to 2 October to 23 December to
dematerialised or 28 June 4 October 27 December
rematerialised on the South (inclusive) (inclusive) (inclusive)
Africa branch register
Shares commence trading ex- 27 June 3 October 24 December
dividend (LSE)
Shares commence trading ex- 27 June 3 October 26 December
dividend (NYSE)
Record date 28 June 4 October 27 December
(JSE, LSE and NYSE)
Last date for receipt of 18 July 24 October 16 January 2020
Dividend Reinvestment Plan
(DRIP) elections (LSE)
Payment date (LSE and JSE) 8 August 14 November 6 February 2020
ADS payment date (NYSE) 13 August 19 November 11 February 2020
*JSE finalisation information published on 18 June 2019 can be found on the British American Tobacco
website www.bat.com.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Directors of the Company. It is only a summary
of the information contained in the full Half-Year Report to 30 June 2019 (the “Results Announcement”)
and does not contain full or complete details. Any investment decisions should be based on consideration
of the full Results Announcement available via the JSE at
https://senspdf.jse.co.za/documents/2019/JSE/ISSE/BTI/BATHY19.pdf
and on the Company’s website at www.bat.com.
Copies of the full Results Announcement may also be obtained during normal business hours from the
Company’s registered office and the Company’s representative office in South Africa. Contact details are
set out below.
SHAREHOLDER INFORMATION
FINANCIAL CALENDAR
Wednesday 11 December 2019 Pre-close Trading Update
Thursday 27 February 2020 Preliminary Statement 2019
PROPOSED DATES FOR QUARTERLY DIVIDEND PAYMENTS FOR THE YEAR ENDING 31
DECEMBER 2019
Event Payment No. 1 Payment No. 2 Payment No. 3 Payment No. 4
Last day to trade 24 March 2020 7 July 2020 29 September 2020 14 December 2020
(JSE)
Ex-dividend date 25 March 2020 8 July 2020 30 September 2020 15 December 2020
(JSE)
Ex-dividend date 26 March 2020 9 July 2020 1 October 2020 17 December 2020
(LSE and NYSE)
Record date 27 March 2020 10 July 2020 2 October 2020 18 December 2020
(JSE, LSE and NYSE)
Payment date 13 May 2020 19 August 2020 12 November 2020 3 February 2021
(LSE and JSE)
ADS payment date 18 May 2020 24 August 2020 17 November 2020 8 February 2021
(NYSE)
Notes:
(1) A complete timetable for the quarterly dividend payments for the year ending 31 December 2019 and
the declared amount will be included in the Preliminary Results Announcement in February 2020.
(2) The dates set out above may be subject to any changes to public holidays arising and changes or
revisions to the LSE, JSE and NYSE timetables. Any confirmed changes to the dates will be announced.
CORPORATE INFORMATION
Premium listing
London Stock Exchange (Share Code: BATS; ISIN: GB0002875804)
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ, UK
tel: 0800 408 0094; +44 370 889 3159
Share dealing tel: 0370 703 0084 (UK only)
Your account: www.computershare.com/uk/investor/bri
Share dealing: www.computershare.com/dealing/uk
Web-based enquiries: www.investorcentre.co.uk/contactus
Secondary listing
JSE (Share Code: BTI)
Shares are traded in electronic form only and transactions settled electronically through Strate.
Computershare Investor Services Proprietary Limited
PO Box 61051, Marshalltown 2107, South Africa
tel: 0861 100 634; +27 11 870 8216
email enquiries: web.queries@computershare.co.za
Sponsor for the purposes of the JSE
UBS South Africa (Pty) Ltd
American Depositary Receipts (ADRs)
NYSE (Symbol: BTI; CUSIP Number: 110448107)
BAT’s shares are listed on the NYSE in the form of American Depositary Shares (ADSs) and these are evidenced by
American Depositary Receipts (ADRs), each one of which represents one ordinary share of British American
Tobacco p.l.c. Citibank, N.A. is the depositary bank for the sponsored ADR programme.
Citibank Shareholder Services
PO Box 43077, Providence, Rhode Island 02940-3077, USA
tel: +1 888 985 2055 (toll-free) or +1 781 575 4555
email enquiries: citibank@shareholders-online.com
website: www.citi.com/dr
Publications
British American Tobacco Publications
Unit 80, London Industrial Park, Roding Road, London E6 6LS, UK
tel: +44 20 7511 7797; facsimile: +44 20 7540 4326
e-mail enquiries: bat@team365.co.uk or the Company’s Representative office in South Africa using the contact
details shown below.
British American Tobacco p.l.c.
Registered office
Globe House, 4 Temple Place, London, WC2R 2PG, UK
tel: +44 20 7845 1000; facsimile: +44 20 7240 0555
British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange, New
York Stock Exchange and the JSE Limited in South Africa. British American Tobacco p.l.c. is incorporated in
England and Wales (No. 3407696) and domiciled in the UK.
British American Tobacco p.l.c.
Representative office in South Africa
Waterway House South
No 3 Dock Road, V&A Waterfront, Cape Town 8000
South Africa
PO Box 631, Cape Town 8000, South Africa
tel: +27 21 003 6712
ENQUIRIES
INVESTOR RELATIONS: PRESS OFFICE:
Mike Nightingale +44 (0)20 7845 1180 Press Office +44 (0)20 7845 2888
Rachael Brierley +44 (0)20 7845 1519
John Harney +44 (0)20 7845 1263
FORWARD-LOOKING STATEMENTS
This announcement contains certain forward-looking statements, including “forward-looking” statements made within the
meaning of Section 21E of the United States Securities Exchange Act of 1934. These statements are often, but not always, made
through the use of words or phrases such as “believe,” “anticipate,” “could,” “may,” “would,” “should,” “intend,” “plan,”
“potential,” “predict,” “will,” “expect,” “estimate,” “project,” “positioned,” “strategy,” “outlook”, “target” and similar expressions.
These include 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.
All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors
that could cause actual future financial condition, performance and results to differ materially from the plans, goals, expectations
and results expressed in the forward-looking statements and other financial and/or statistical data within this announcement.
Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements
are uncertainties related to the following: the impact of competition from illicit trade; the impact of adverse domestic or
international legislation and regulation; changes in domestic or international tax laws and rates; adverse litigation and dispute
outcomes and the effect of such outcomes on the Group’s financial condition; changes or differences in domestic or international
economic or political conditions; adverse decisions by domestic or international regulatory bodies; the impact of market size
reduction and consumer down-trading; translational and transactional foreign exchange rate exposure; the impact of serious
injury, illness or death in the workplace; the ability to maintain credit ratings and to fund the business under the current capital
structure; the inability to develop, commercialise and roll-out Potentially Reduced-Risk Products; and changes in the market
position, businesses, financial condition, results of operations or prospects of the Group.
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 Group undertakes no
obligation to update or revise these forward-looking statements, whether as a result of new information, future events or
otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.
No statement in this communication is intended to be a profit forecast and no statement in this communication should be
interpreted to mean that earnings per share of BAT for the current or future financial years would necessarily match or exceed the
historical published earnings per share of BAT.
Additional information concerning these and other factors can be found in the Company’s Annual Reports, which may be obtained
free of charge from the British American Tobacco website www.bat.com.
Sponsor: UBS South Africa (Pty) Ltd
Date: 01/08/2019 08:00:00
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