By Jaime Llinares Taboada

 

British American Tobacco PLC on Thursday reiterated 2022 guidance for revenue and earnings growth.

The FTSE 100 tobacco group maintained full-year constant-currency guidance of revenue growth at 2%-4%, and mid-single-digit adjusted diluted earnings-per-share growth, with operating cash conversion of more than 90%.

Applying current foreign-exchange rates, BAT said that this would translate into an adjusted EPS tailwind of 2% for the first half and 5% for the full year.

Chief Executive Jack Bowles said the company is highly cash generative and is on track to return two billion pounds ($2.51 billion) to shareholders through its 2022 share-buyback program.

As for its new-category division, BAT said that it expects to report strong revenue and volume growth with reduced losses and continued investment this year, and that it is on track to deliver on its 2025 new-category revenue and profit targets.

However, first-half group results will reflect a strong prior-year comparator in the U.S. and the sale of its business in Iran last year, it said.

BAT is working toward the transfer of its Russian business, and said the conflict in Ukraine is exacerbating inflationary pressures on supply chains, affecting consumer consumption and resulting in increased finance costs.

"While we are not immune to these pressures, we are confident in delivering on our current financial targets, irrespective of the timing of the transfer of our Russian business," Mr. Bowles said.

 

Write to Jaime Llinares Taboada at jaime.llinares@wsj.com; @JaimeLlinaresT

 

(END) Dow Jones Newswires

June 09, 2022 03:08 ET (07:08 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.
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