British American Tobacco Provides Trade Update; Says US Consumers Wary Of Inflation

• British American Tobacco PLC (NYSE: BTI) has provided a trading update and confidence in delivering its 2022 guidance.

• The company expects FY22 revenue growth of 2% – 4% at constant currency rates and a mid-single figure adjusted diluted EPS growth at constant currency rates, including a transactional FX headwind of 2%.

• The company expects net finance costs for FY22 to be above £1.6 billion, driven by rising interest rates and U.S. dollar strength.

• The company also reported confidence in delivering its target of £5 billion revenue, and profitability by 2025.

• In addition, the company expects its three-year Quantum programme to deliver over £1.5 billion in annualized cost savings by the end of 2022.

• In the U.S., the company said industry volumes remain under pressure due to ongoing macro-economic factors and post-COVID normalization of consumption patterns.

• British American Tobacco expects to deliver strong adjusted operating margin improvement despite increasing inflation in its supply chain.

• Price Action: BTI shares are trading lower by 2.93% at $40.80 in premarket on the last check Thursday.

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