BAT assured of solid earnings growth
By Marc Hasenfuss - Dec 14th 2017, 09:53
Cigarette company British American Tobacco (BAT) is confident of good earnings growth in the financial year to end-December on a constant currency basis.
In a pre-closed period trading update released on Wednesday, BAT directors said the business continued to perform well and that trading was in line with expectations.
In a regional market overview, BAT said Canada, Germany, Romania, Bangladesh, and Ukraine performed well, but conditions remained challenging in SA, Russia, the Middle East, Brazil, and Malaysia.
The group indicated that further market share growth was driven by the global drive brands, which include Kent, Rothmans, Dunhill, Lucky Strike and Pall Mall.
Directors noted organic operating profit growth in the second half of the financial year reflected the benefit of the phasing of volume shipments in a number of key markets, including Pakistan. But this was offset by a more difficult pricing environment — including excise tax hikes — in some markets.
BAT expected full-year tobacco volume to be down around 4%, with directors highlighting the group outperforming the industry thanks to its market share gains.
BAT is also gaining traction in the growing new generation product revenues (e-cigarettes and tobacco heated products) segments. The roll-out of tobacco heated product brand glo in Japan was complete, BAT said, adding that glo had continued its excellent performance with national share at 2.7%.
It said glo had also been successfully launched in Switzerland, Canada, South Korea and Russia.
In the e-cigarette segment, BAT said its market share in western Europe continued to grow while the performance of the VUSE brand in the US remained strong.
The integration of recently acquired Reynolds American was on track with the businesses performing strongly, driven by good market share growth and pricing.© BusinessLIVE MMXVII
Rhodes Food Group's turnover rises amid healthy international growth
16/09/2019 - 11:14
The international turnover of Rhodes Food Group, which makes Bull Brand corned meat and Bisto gravies, rose 13.4% in the 10 months to end-July, boosted by a weaker rand and exports of fruit snacks to the US.
4 reasons to be hopeful about South Africa’s economy
12/09/2019 - 14:40
Markets responded positively to South Africa’s economic growth rebounding in the second quarter, up 3.1%, and 0.9% for the year to June 2019.
British American tobacco to cut more than 2000 jobs
12/09/2019 - 10:28
British American Tobacco plans to cut 2 300 jobs around the world, the company announced.
Foschini's cash sales climb, but credit is under pressure
03/09/2019 - 13:58
The JSE-listed clothing retailer the Foschini Group [JSE:TFG] announced a 14.1% increase in cash sales in its South African operations in the first 21 weeks of 2020, while sales on credit only rose 0.9%.
No pain, no gain for SA economy
02/09/2019 - 16:22
Despite SA’s fiscal crisis — and the fact that the country has very little to show for the loose fiscal policy run over the past decade — there is a lobby (mainly on the Left) that thinks the best way to resolve SA’s growth and fiscal challenges is to inject further fiscal stimulus into the economy.