TIDMBATS
RNS Number : 0456T
British American Tobacco PLC
15 March 2019
BRITISH AMERICAN TOBACCO p.l.c.
Annual Report for the Year Ended 31 December 2018
In compliance with Listing Rule 9.6.1, British American Tobacco
p.l.c. (the "Company") reports that its Annual Report 2018
(including the Strategic Report 2018) will be shortly submitted to
the National Storage Mechanism and will be available for inspection
via the following link: www.morningstar.co.uk/uk/nsm.
The Company's Annual Report 2018 has been published to be viewed
or downloaded on the British American Tobacco website at
www.bat.com/annualreport.
In addition, in accordance with Section 203.01 of the New York
Stock Exchange Listed Company Manual, the Company announces that
today it filed with the Securities and Exchange Commission an
Annual Report on Form 20-F that included audited financial
statements for the year ended 31 December 2018. The Annual Report
on Form 20-F will be available online at the British American
Tobacco website at www.bat.com/annualreport and also online at
www.sec.gov.
The Annual Report 2018 and other ancillary shareholder documents
will be mailed and made available to shareholders on 21 March 2019.
Investors have the ability to receive a hard copy of BAT's complete
audited financial statements, free of charge, upon request, by
contacting the below:
United Kingdom
British American Tobacco Telephone: +44 20 7511 7797
Publications Email: bat@team365.co.uk
-----------------------------------------
South Africa
The Company's Representative Telephone: +27 21 003 6712
Office
-----------------------------------------
United States
Citibank Shareholder Services Telephone: +1 888 985 2055
(toll-free)
Email: citibank@shareholders-online.com
-----------------------------------------
The Company made its preliminary announcement of its audited
results (which included a condensed set of the Company's financial
statements, extracts of the management report and a Directors'
responsibility statement) in respect of the year ended 31 December
2018 (the "Preliminary Announcement") on 28 February 2019. Further
to the Preliminary Announcement and with reference to the
requirements of Rule 6.3.5 of the Disclosure Guidance and
Transparency Rules, the following disclosures are made in the
Appendices below.
Appendix A to this announcement contains a description of the
Principal Group Risks (page 48 of the Annual Report 2018) and
Appendix B is a statement of related party disclosures (page 190 of
the Annual Report 2018). Together these constitute the material
required by Rule 6.3.5 of the Disclosure Guidance and Transparency
Rules to be communicated to the media in unedited full text through
a Regulatory Information Service. This material is not a substitute
for reading the full Annual Report 2018. Any page numbers and
cross-references in the extracted information below refer to page
numbers in the Annual Report 2018.
P McCrory
Company Secretary
15 March 2019
Enquiries:
Investor Relations
Mike Nightingale/Rachael Brierley/John Harney
+44 20 7845 1180/1519/1263
British American Tobacco Press Office
+44 (0) 20 7845 2888 (24 hours) | @BATPress
APPIX A
PRINCIPAL GROUP RISKS
Overview
The principal risks that may affect the Group are set out on the
following pages.
Each risk is considered in the context of the Group's strategy,
as set out in this Strategic Report on pages 8 and 9. Following a
description of each risk, its potential impact and management by
the Group is summarised. Clear accountability is attached to each
risk through the risk owner.
The Group has identified risks and is actively monitoring and
taking action to manage the risks. This section focuses on those
risks that the Directors believe to be the most important after
assessment of the likelihood and potential impact on the business.
Not all of these risks are within the control of the Group and
other risks besides those listed may affect the Group's
performance. Some risks may be unknown at present. Other risks,
currently regarded as less material, could become material in the
future.
The risks listed in this section and the activities being
undertaken to manage them should
be considered in the context of the Group's internal control
framework. This is described in the section on risk management and
internal control in the corporate governance statement on pages 68
to 70. This section should also be read in the context of the
cautionary statement on page 296.
A summary of all the risk factors (including the principal
risks) which are monitored by the Board through the Group's risk
register is set out in the Additional disclosures section on pages
270 to 284.
Assessment of Group Risk
During the year, the Directors have carried out a robust
assessment of the principal risks and uncertainties facing the
Group, including those that would threaten its business model,
future performance, solvency or liquidity.
The principal risks facing the Group have remained broadly
unchanged over the past year with regards to Marketplace, Excise
and Tax, Operations, Regulation and Litigation risks. Due to
improved pricing delivery over recent years and better geographical
diversity following the acquisition of RAI the 'inability to obtain
price increases and impact of increases on consumer affordability
thresholds' is no longer a principal risk.
The viability statement below provides a broader assessment of
long-term solvency and liquidity. The Directors have considered a
number of factors that may affect the resilience of the Group.
Except for the risk 'injury, illness or death in the work place'
the Directors have also assessed the potential impact of the
principal risks that may impact the Group's viability.
Viability Statement
The Directors have assessed the viability of the Group, in
accordance with provision C.2.2 of the 2016 revision of the UK
Corporate Governance Code. Whilst the Directors have no reason to
believe the Group will not be viable over a longer period, owing to
the inherent uncertainty arising due to ongoing litigation and
regulation the period over which the Directors consider it possible
to form a reasonable expectation as to the Group's longer-term
viability is three years.
In making this assessment the Directors have considered the
Group's continued strong cash generation from operating activities.
This assessment included a robust review of the principal risks
that may impact the Group's viability (as indicated on pages 49 to
52) which are considered, with the mitigating actions, at least
once a year. The Directors also took account of the Group's
operational and financial processes, which cover both short-term
(1-2 year financial forecasts, 2-3 year capacity plans) and
longer-term strategic planning. The assessment included reverse
stress testing core drivers that underpin the specific risks to
ensure the business is able to continue in operation, whilst not
breaching the required gross interest cover of 4.5 times (see page
39). Each impact would, individually, have to be between 5 times
and 10 times worse than a prudent annual forecast, or would all
have to arise simultaneously with no mitigating or corrective
actions to affect the Group's ability to meet the liabilities as
they fall due.
Due to the level of borrowings carried on the balance sheet, the
Group may be exposed to movements in interest rates. The Directors
noted that, as stated in note 23 in the Notes on the Accounts, the
Group sets a minimum of 50% of interest rate as fixed on short- to
medium-term borrowings, minimising the risk of interest rate
fluctuation impacting viability over the period. At 31 December
2018, the ratio of floating to fixed rate borrowings was 21:79
(2017: 19:81).
The Directors noted that the Group would be able to adjust
certain capital requirements, including but not limited to the
investment in the Group's manufacturing infrastructure in the short
term and the GBP6 billion credit facility (2018 undrawn), to
mitigate the impact of the effect of the above principal risks,
each of which have specific mitigation activities as disclosed on
pages 49 to 52.
The Group is subject to inherent uncertainties with regards to
regulatory change and litigation, the outcome of which may have a
bearing on the Group's viability. The Group maintains, as referred
to in note 28 in the Notes on the Accounts 'Contingent Liabilities
and Financial Commitments,' that, whilst it is impossible to be
certain of the outcome of any particular case, the defences of the
Group's companies to all the various claims are meritorious on both
law and the facts. If an adverse judgment is entered against any of
the Group's companies in any case, an appeal may be made, the
duration of which can be reasonably expected to last for a number
of years.
Risks
Competition from illicit trade
Increased competition from illicit trade - either local duty
evaded, smuggled illicit white cigarettes or counterfeits.
Time frame
Long term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Erosion of brand equity, with lower volumes and reduced
profits.
Reduced ability to take price increases.
Investment in trade marketing and distribution is
undermined.
Mitigation activities
Dedicated Anti-Illicit Trade (AIT) teams operating at global and
country levels; internal cross-functional levels; best practice
shared.
Active engagement with key external stakeholders.
Cross-industry and multi-sector cooperation on a range of AIT
issues.
Global AIT strategy supported by a research programme to further
the understanding of the size and scope of the problem.
AIT Engagement Team (including a dedicated analytical
laboratory) works with enforcement agencies in pursuit of priority
targets.
Tobacco, nicotine and other regulation inhibits growth
strategy
The enactment of regulation that significantly impairs the
Group's ability to communicate, differentiate, market or launch its
products.
Time frame
Medium term
Strategic impact
Growth and Sustainability
Considered in viability statement
Yes
Impact
Erosion of brand value through commoditisation, the inability to
launch innovations, differentiate products, maintain or build brand
equity and leverage price.
Regulation in respect of menthol may adversely impact individual
brand portfolios.
Adverse impact on ability to compete within the legitimate
tobacco or nicotine industry and also with increased illicit
trade.
Reduced consumer acceptability of new product specifications,
leading to consumers seeking alternatives in illicit trade.
Shocks to share price on the announcement or enactment of
restrictive regulation.
Reduced ability to compete in future product categories and make
new market entries.
Increased scope and severity of compliance regimes in new
regulation leading to higher costs, greater complexity and
potential reputational damage or fines for inadvertent breach.
Proposed EU Directive on single-use plastics could result in
increased operational costs and/or a decline in sales volume.
Please refer to pages 285 to 288 for details of tobacco and
nicotine regulatory regimes under which the Group's businesses
operate.
Mitigation activities
Engagement and litigation strategy coordinated and aligned
across the Group to drive a balanced global policy framework for
the nicotine category.
Stakeholder mapping and prioritisation, developing robust
compelling advocacy materials (with supporting evidence and data)
and regulatory engagement programmes.
Regulatory risk assessment of marketing plans to ensure
decisions are informed by an understanding of the potential
regulatory environments.
Advocating the application of integrated regulatory proposals to
governments and public health practitioners based on the harm
reduction principles.
Development of an integrated regulatory strategy that spans
conventional combustibles and Next Generation Products.
Market size reduction and consumer down-trading
The Group is faced with steep excise-led price increases and,
due in part to the continuing difficult economic and regulatory
environment in many countries, market contraction and consumer
down-trading is a risk.
Time frame
Short/Medium term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Volume decline and portfolio mix erosion.
Funds to invest in growth opportunities are reduced.
Mitigation activities
Geographic spread mitigates impact at Group level.
Close monitoring of portfolio and pricing strategies, ensuring
balanced portfolio of strong brands across key segments.
Overlap with many mitigation activities undertaken for other
principal risks facing the Group, such as competition from illicit
tobacco trade and significant excise increases or structure
changes.
Litigation
Product liability, regulatory or other significant cases may be
lost or compromised resulting in a material loss or other
consequence.
Time frame
Long term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Damages and fines, negative impact on reputation, disruption and
loss of focus on the business.
Consolidated results of operations, cash flows and financial
position could be materially affected, in a particular fiscal
quarter or fiscal year, by region or country, by an unfavourable
outcome or settlement of pending or future litigation.
Inability to sell products as a result of a successful patent
infringement action may restrict growth plans and
competitiveness.
Mitigation activities
Consistent litigation strategy across the Group.
Expertise and legal talent maintained both within the Group and
external partners.
Ongoing monitoring of key legislative, case law and tobacco
developments.
Please refer to note 28 in the Notes on the Accounts for details
of contingent liabilities applicable to the Group.
Geopolitical tensions
Geopolitical tensions, civil unrest, terrorism and organised
crime have the potential to disrupt the Group's business in
multiple markets.
Time frame
Medium term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Potential loss of life, loss of assets and disruption to normal
business processes.
Increased costs due to more complex supply chain arrangements
and/or the cost of building new facilities or maintaining
inefficient facilities.
Lower volumes as a result of not being able to trade in a
country.
Mitigation activities
Physical and procedural security controls are in place, and
constantly reviewed in accordance with our SRM process, for all
field force and supply chain operations, with an emphasis on the
protection of Group employees.
Globally integrated sourcing strategy and contingency sourcing
arrangements.
Security risk modelling, including external risk assessments and
the monitoring of geopolitical and economic policy developments
worldwide.
Insurance cover and business continuity planning, including
scenario planning and testing, and risk awareness training.
Disputed taxes, interest and penalties
The Group may face significant financial penalties, including
the payment of interest in the event of an unfavourable ruling by a
tax authority in a disputed area.
Time frame
Short/Medium term
Strategic impact
Productivity
Considered in viability statement
Yes
Impact
Significant fines and potential legal penalties.
Disruption and loss of focus on the business due to diversion of
management time.
Impact on profit and dividend.
Mitigation activities
End market tax committees.
Internal tax function provides dedicated advice and guidance,
and external advice sought where needed.
Engagement with tax authorities at Group, regional and
individual market level.
Significant increases or structural changes in tobacco-related
taxes
The Group is exposed to unexpected and/or significant increases
or structural changes in tobacco-related taxes in key markets.
Time frame
Long term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Consumers reject the Group's legitimate tax-paid products for
products from illicit sources or cheaper alternatives.
Reduced legal industry volumes.
Reduced sales volume and/or portfolio erosion.
Partial absorption of excise increases.
Mitigation activities
Requirement for Group companies to have in place formal pricing
and excise strategies, including contingency plans, with annual
risk assessments.
Pricing, excise and trade margin committees in markets, with
regional and global support.
Engagement with local tax and customs authorities, where
appropriate, in particular in relation to the increased risk to
excise revenues from higher illicit trade.
Portfolio reviews to ensure appropriate balance and coverage
across price segments.
Monitoring of economic indicators, government revenues and the
political situation.
Foreign exchange rate exposures
The Group faces translational and transactional foreign exchange
(FX) rate exposure for earnings/cash flows from its global
business.
Time frame
Short/Medium term
Strategic impact
Productivity
Considered in viability statement
Yes
Impact
Fluctuations in FX rates of key currencies against sterling
introduce volatility in reported Earnings per share (EPS), cash
flow and the balance sheet driven by translation into sterling of
our financial results and these exposures are not normally
hedged.
The dividend may be impacted if the payout ratio is not
adjusted.
Differences in translation between earnings and net debt may
affect key ratios used by credit rating agencies.
Volatility and/or increased costs in our business, due to
transactional FX, may adversely impact financial performance.
Mitigation activities
While translational FX exposure is not hedged, its impact is
identified in results presentations and financial disclosures;
earnings are re-stated at constant rates for comparability.
Debt and interest are matched to assets and cash flows to
mitigate volatility where possible and economic to do so.
Hedging strategy for transactional FX and framework is defined
in the treasury policy, a global policy approved by the Board.
Illiquid currencies of many markets where hedging is either not
possible or uneconomic are reviewed on a regular basis.
Injury, illness or death in the workplace
The risk of injury, death or ill health to employees and those
who work with the business is a fundamental concern of the Group
and can have a significant effect on its operations.
Time frame
Short term
Strategic impact
Sustainability
Considered in viability statement
No
Impact
Serious injuries, ill health, disability or loss of life
suffered by employees and the people who work with the Group.
Exposure to civil and criminal liability and the risk of
prosecution from enforcement bodies and the cost of associated
fines and/or penalties.
Interruption of Group operations if issues are not addressed
immediately.
High staff turnover or difficulty recruiting employees if
perceived to have a poor Environment, Health and Safety (EHS)
record.
Reputational damage to the Group.
Mitigation activities
Risk control systems in place to ensure equipment and
infrastructure are provided and maintained.
An EHS strategy ensures that employees at all levels receive
appropriate EHS training and information.
Behavioural-based safety programme to drive Operations' safety
performance and culture closer to zero accidents.
Analysis of incidents undertaken regionally and globally by a
dedicated team to identify increasing incident trends or high
potential risks that require coordinated action.
Solvency and liquidity
Liquidity (access to cash and sources of finance) is essential
to maintaining the Group as a going concern in the short term
(liquidity) and medium term (solvency).
Time frame
Short/Medium term
Strategic impact
Productivity
Considered in viability statement
Yes
Impact
Inability to fund the business under the current capital
structure resulting in missed strategic opportunities or inability
to respond to threats.
Decline in our creditworthiness and increased funding costs for
the Group.
Requirement to issue equity or seek new sources of capital.
Reputational risk of failure to manage the financial risk
profile of the business, resulting in an erosion of shareholder
value reflected in an underperforming share price.
Mitigation activities
Group policies include a set of financing principles and key
performance indicators including the monitoring of credit ratings,
interest cover, solvency and liquidity with regular reporting
to
the Board.
The Group targets an average centrally managed debt maturity of
at least five years with no more than 20% of centrally managed debt
maturing in a single rolling year.
The Group, through B.A.T. International Finance p.l.c., holds a
two- tranche revolving credit facility of GBP6 billion syndicated
across a wide banking group. This consists of a 364-day revolving
credit facility
of GBP3 billion (with a one-year term-out option), and a GBP3
billion revolving credit facility maturing in 2021.
Liquidity pooling structures are in place to ensure that there
is maximum mobilisation of cash liquidity within the Group.
The Group has an externally imposed capital requirement for its
centrally managed banking facilities of maintaining gross interest
cover above 4.5 times. The Group targets a gross interest cover of
greater than 5 times.
Going concern and viability support papers are presented to the
Board on a regular basis.
Inability to develop, commercialise and roll-out Potentially
Reduced-Risk Products
Risk of not capitalising on the opportunities in developing and
commercialising successful and consumer-appealing innovations.
Time frame
Long term
Strategic impact
Growth
Considered in viability statement
Yes
Impact
Failure to deliver Group strategic imperative and 2020 growth
ambition.
Potentially missed opportunities, unrecoverable costs and/or
erosion of brand.
Reputational damage and recall costs may arise in the event of
defective product design or manufacture.
Loss of market share due to non-compliance of product portfolio
with regulatory requirements.
Mitigation activities
Focus on product stewardship to ensure high-quality standards
across portfolio.
Collaboration between internal legal, external affairs and
R&D in order to identify current and future regulations and
align the innovation pipeline.
APPIX B
RELATED PARTY DISCLOSURES
The Group has a number of transactions and relationships with
related parties, as defined in IAS 24 Related Party Disclosures,
all of which are undertaken in the normal course of business.
Transactions with CTBAT International Limited (a joint operation)
are not included in these disclosures as the results are immaterial
to the Group.
Transactions and balances with associates relate mainly to the
sale and purchase of cigarettes and tobacco leaf. Amounts
receivable from associates in respect of dividends included in the
table below were GBPnil million (2017: GBPnil million; 2016: GBP221
million). The Group's share of dividends from associates, included
in other net income in the table below, was GBP211 million (2017:
GBP688 million; 2016: GBP1,024 million).
2018 2017 2016
GBPm GBPm GBPm
=================================== ==================== ========================
Transactions
366 370 (218)
- revenue 473 (101) (298)
- purchases 216 699 1,023
- other net income 26 40 270
Amounts receivable at 31 December (1) (1) (2)
Amounts payable at 31 December
=================================== ==================== ========================
As explained in note 24 [in the Notes on the Accounts], in 2017,
the Group completed the acquisition of the remaining 57.8% of RAI
not already owned. This transaction has not been included in the
table above.
On 17 December 2012, a wholly owned subsidiary of the Group,
BATUS Japan Inc. (BATUSJ), entered into an Amendment and Extension
Agreement (referred to as the Amendment) with a wholly owned
subsidiary of RAI, R.J. Reynolds Tobacco Company (referred to as
RJRTC). The Amendment modifies the American-blend Cigarette
Manufacturing Agreement (referred to as the 2010 Agreement),
effective as of 1 January 2010.
Prior to the Amendment, the term of the 2010 Agreement was
scheduled to expire on 31 December 2014, subject to early
termination and extension provisions. Pursuant to the Amendment,
the Manufacturing Agreement would remain in effect beyond 31
December 2014, provided that either RJRTC or BATUSJ may terminate
the Manufacturing Agreement by furnishing three years' notice to
the other party. Such notice was given in January 2016. As a result
of early termination of this agreement the Group agreed to a
compensation payment of US$90 million of which US$7 million were
paid to RJRTC on 22 September 2016, with the Group recognising the
full expense of US$90 million as required by IFRS in 2016. The
balance was paid in March 2017.
During 2018, the Group acquired a further 44% interest in
British American Tobacco Myanmar Limited and a further 11% interest
in British American Tobacco Vranje.
During 2017, the Group acquired the remaining 49% interest in
IPRESS d.o.o. and a further 0.01% interest in British American
Tobacco Chile Operaciones S.A. The combined costs are less than
GBP1 million.
During 2016, the Group received proceeds of GBP23 million in
respect of its participation in the share buy-back programme
conducted by RAI. This programme ceased in the fourth quarter of
2016.
During 2016, the Group acquired the remaining 1% interest in
Souza Cruz at a cost of GBP70 million. This transaction is shown as
a GBP4 million increase in reserves attributable to the owners of
the parent and a GBP4 million reduction in reserves attributable to
non-controlling interests in note 19.
As explained in note 12 [in the Notes on the Accounts],
contributions to the British American Tobacco UK Pension Fund are
secured by a charge over the Group's Head Office (Globe House) up
to a maximum of GBP150 million.
The key management personnel of British American Tobacco consist
of the members of the Board of Directors of British American
Tobacco p.l.c. and the members of the Management Board. No such
person had any material interest during the year in a contract of
significance (other than a service contract) with the Company or
any subsidiary company. The term key management personnel in this
context includes their close family members.
2018 2017 2016
GBPm GBPm GBPm
===================================================== ===== ====================
The total compensation for key management personnel,
including Directors, was:
- salaries and other short-term employee benefits 21 24 18
- post-employment benefits 4 5 3
- share-based payments 18 16 12
===================================================== ===== ====================
43 45 33
===================================================== ===== ====================
The following table, which is not part of IAS24 disclosures,
shows the aggregate emoluments of the Directors of the Company.
2018 2017 2016 2018 2017 2016 2018 2017 2016 2018 2017 2016
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
GBP'000 GBP'000 GBP'000
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Salary; fees;
benefits;
incentives
- salary 2,211 2,122 2,057 - - - - - - 2,211 2,122 2,057
- fees - - - 680 660 645 1,092 1,042 1,051 1,772 1,702 1,696
- taxable benefits 427 385 335 116 129 106 303 195 122 846 709 563
- short-term
incentives 5,031 4,689 4,622 - - - - - - 5,031 4,689 4,622
- long-term
incentives 5,300 10,192 4,483 - - - - - - 5,300 10,192 4,483
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Sub-total 12,969 17,388 11,497 796 789 751 1,395 1,237 1,173 15,160 19,414 13,421
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Pension; other
emoluments
- pension
- other emoluments 921 612 634 - - - - - - 921 612 634
50 50 44 - - - - - - 50 50 44
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Sub-total 971 662 678 - - - - - - 971 662 678
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Total emoluments 13,940 18,050 12,175 796 789 751 1,395 1,237 1,173 16,131 20,076 14,099
==================== ============ ================ =========== ================ ============ ====================== ============ ================
Aggregate gains on LTIP shares
exercised
in the year
================================== ==================================================================================
Price Aggregate
Exercised per share gain
Award date LTIP shares Exercise (GBP) (GBP)
date
================================== ===================== =============== ============ ============== ============
Nicandro Durante 27 Mar 2015 122,477 27 Mar 2018 39.46 4,832,942
Ben Stevens 27 Mar 2015 66,925 27 Mar 2018 39.46 2,640,861
================================== ===================== =============== ============ ============== ============
LTIP - Value of awards 2015
============================ ==========================================
Price Face
per share Value
Shares (GBP)(1) (GBP)
============================ ============ ============== ==========
Nicandro Durante 127,448 36.25 4,619,990
Ben Stevens 69,641 36.25 2,524,486
============================== ============ ============== ==========
1. For information only as awards are made as nil cost options.
In 2018, no Sharesave were exercised by Executive Directors.
Forward looking statements
This announcement contains certain forward-looking statements,
including "forward-looking" statements made within the meaning of
Section 21E of the United States Securities Exchange Act of 1934.
These statements are often, but not always, made through the use of
words or phrases such as "believe," "anticipate," "could," "may,"
"would," "should," "intend," "plan," "potential," "predict,"
"will," "expect," "estimate," "project," "positioned," "strategy,"
"outlook", "target" and similar expressions. These include
statements regarding our intentions, beliefs or current
expectations concerning, amongst other things, our results of
operations, financial condition, liquidity, prospects, growth,
strategies and the economic and business circumstances occurring
from time to time in the countries and markets in which the Group
operates.
All such forward-looking statements involve estimates and
assumptions that are subject to risks, uncertainties and other
factors that could cause actual future financial condition,
performance and results to differ materially from the plans, goals,
expectations and results expressed in the forward-looking
statements and other financial and/or statistical data within this
announcement. Among the key factors that could cause actual results
to differ materially from those projected in the forward-looking
statements are uncertainties related to the following: the impact
of competition from illicit trade; the impact of adverse domestic
or international legislation and regulation; changes in domestic or
international tax laws and rates; adverse litigation and dispute
outcomes and the effect of such outcomes on the Group's financial
condition; changes or differences in domestic or international
economic or political conditions; adverse decisions by domestic or
international regulatory bodies; the impact of market size
reduction and consumer down-trading; translational and
transactional foreign exchange rate exposure; the impact of serious
injury, illness or death in the workplace; the ability to maintain
credit ratings and to fund the business under the current capital
structure; the inability to develop, commercialise and roll-out
Potentially Reduced-Risk Products; and changes in the market
position, businesses, financial condition, results of operations or
prospects of the Group.
It is believed that the expectations reflected in this
announcement are reasonable but they may be affected by a wide
range of variables that could cause actual results to differ
materially from those currently anticipated. Past performance is no
guide to future performance and persons needing advice should
consult an independent financial adviser. The forward-looking
statements reflect knowledge and information available at the date
of preparation of this announcement and the Group undertakes no
obligation to update or revise these forward-looking statements,
whether as a result of new information, future events or otherwise.
Readers are cautioned not to place undue reliance on such
forward-looking statements.
No statement in this communication is intended to be a profit
forecast and no statement in this communication should be
interpreted to mean that earnings per share of BAT for the current
or future financial years would necessarily match or exceed the
historical published earnings per share of BAT.
Additional information concerning these and other factors can be
found in the Company's filings with the U.S. Securities and
Exchange Commission ("SEC"), including the Annual Report on Form
20-F filed on 15 March 2019 and Current Reports on Form 6-K, which
may be obtained free of charge at the SEC's website,
http://www.sec.gov, and the Company's Annual Reports, which may be
obtained free of charge from the British American Tobacco website
www.bat.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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British American Tobacco (LSE:BATS)
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From Apr 2024 to May 2024
British American Tobacco (LSE:BATS)
Historical Stock Chart
From May 2023 to May 2024