UK
Despite a weaker pound and a slowing market for tobacco-heating devices in Japan, British American Tobacco (BAT) expects to report “good” earnings growth for the full year.
BAT said in a trading update on June 12 that trading in the first half of the year was in line with expectations and that adjusted revenue and profit growth would be weighted to the second half, due to several items affecting its first-half comparisons.
The company also said “good adjusted constant currency EPS growth” was expected to be impacted by a significant currency translation effect of around 9% for the first half and 6% for the full year, at current spot rates.
And, although the market for tobacco heating products has slowed in Japan, BAT’s product, glo, is growing and currently has 43% of the national market. It is also on track for further Japanese and international rollouts in the second half of the year.