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Highlights
- British American Tobacco PLC (LSE:BATS) is a An FTSE 100 index-listed consumer goods company.
- In fiscal year 2022, the company posted 7.67% increase in revenue.
- During H1 FY23, the firm secured a revenue of GBP 12,869 million.
An FTSE 100 index-listed entity British American Tobacco PLC (LSE:BATS) is a consumer goods company involved in producing and selling nicotine products across the globe. The business involves distribution of its products in the retail market of the United States, Europe, and North Africa (ENA), the Asia Pacific and Middle East (APME) and Americas and Sub-Saharan Africa (AMSSA) regions.
In fiscal year 2022, the company posted 7.67% increase in revenue. This growth can be attributed to the increased volumes (units) sold and improved pricing mix and growth in new categories, partially offset by a negative geography mix. Furthermore, BATS registered a marginal increase of 2.8% in the profit from operations to GBP 10,523 million, because of the higher revenue.
In the first half of fiscal year 2023 (H1 FY23), the group secured a revenue of GBP 12,869 million, while its profit from the operations was recorded at GBP 3,678 million.
For the year ahead, the company is expecting its operating cash flows conversion rate to be above 90% with an organic growth ranging between 3% and 5% on constant currency basis. Given that the company has said that its performance would be inclined towards the second half of FY23, BATS has a huge task to be done in the second half of current fiscal.
BATS’ ultimate goal
The company aims to build a consumer base of 50 million people for its non-combustible products by 2030. It will be pulling forth the revenues from its New Category at a faster pace to attain the target of £5 billion in 2025. In 2022, the number of consumers for non-combustible brands stood at 22.5 million, marking an increase of 4.2 million.
Stock Price Performance
The stock has witnessed a decline of ~2.58% in the last one month and over the last 6 months, it has increased by ~21.55%. The stock has a 52-week low and 52-week high of GBX 2543 & GBX 3645, respectively.
Data Source: EODHD/Others, Analysis done by Kalkine Group
Please note markets are trading in a highly volatile zone currently due to certain macro-economic and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference data for all price data, currency, technical indicators, support, and resistance levels is 26 June 2023. The reference data in this report has been partly sourced from EODHD/Others.
