On track to meet FY guidance (Il Sole 24 Ore Radiocor) - London, 25 Jul - BAT said that it is on track to meet its full-year guidance.

It noted that global tobacco industry volume is expected to be down about 2% with continued weakness in the US, France and Sudan, offset by an improving outlook in Turkey and Mexico.

The company anticipates low-single figure organic revenue growth at constant currency.

It also expects a low-single figure organic adjusted profit from operations growth, including a about 2% transactional foreign exchange headwind.

Net finance costs are now expected to be around 1.7 billion pounds.

BAT sees gross capital expenditure in 2024 of approximately 600 million pounds.

It forecast an operating cash flow conversion in excess of 90%.

BAT also expects to be within its narrowed leverage target range of 2.0-2.5x adjusted net debt/adjusted EBITDA by end 2024.

"BAT is a highly cash generative business, and we are committed to continuing to reward shareholders with strong cash returns. We have made progress in enhancing financial flexibility, enabling the initiation of a sustainable share buy-back programme," said the chief executive, Tadeu Marroco.

"Guided by our refined strategy, I am confident that we will progressively improve our performance to deliver 3-5% revenue, and mid-single digit adjusted profit from operations growth on an organic constant currency basis by 2026," he added.

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(RADIOCOR) 25-07-24 19:08:06 (0749) 5 NNNN