H1 revenue, adj pft from ops down organic low single digit (Il Sole 24 Ore Radiocor) - London, 04 Jun - British American Tobacco (BAT) said it was on track to deliver its full year guidance of a low-single figure organic and constant currency revenue and adjusted profit from operations growth after the first half was in line with expectations.

BAT said results would be more weighed to the second half, with an acceleration in revenue and volumes, mainly driven by wholesaler inventory movements related to continued investment in the US commercial actions, as well as the phasing of new launches.

Guidance also reflects ongoing macro-economic pressures, particularly in the US market and continued lack of effective enforcement against the growing illicit vapour segment, BAT said.

The group said it expects its first half to show a low single digit revenue and adjusted profit from operations decline on an organic and constant currency basis.

BAT expects a translational forex headwind on adjusted profit from operations growth of around 4% for the half year and around 4% for full year.

"Looking forward, we expect growing momentum in the second half, enabled by the investments we are making today. As we continue our journey towards building a Smokeless World, guided by our refined strategy, we will progressively improve our performance to deliver 3-5% revenue, and mid-single digit adjusted profit from operations growth on an organic3 constant currency basis by 2026," said chief executive Tadeu Marroco.

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(RADIOCOR) 04-06-24 08:27:38 (0159) 5 NNNN