BATS British American Tobacco Plc

By Joe Hoppe

British American Tobacco said it expects a one-off impairment of around 25 billion pounds ($31.49 billion) in 2023, though it backed its full-year guidance.

The FTSE 100 cigarette maker--which houses the Kent, Dunhill and Lucky Strike brands among its portfolio--said Wednesday that it expects 2023 revenue growth at the low end of its previously guided 3% to 5% range at constant currency.

It reported strong volume and revenue growth in new categories, which it expects to be broadly breakeven.

The company said macroeconomic pressures were hitting its combustibles performance in the U.S., and in conjunction with investment in its noncombustibles business it will take an accounting noncash adjusting impairment charge of around GBP25 billion.

It said the adjustment mainly relates to some of its acquired U.S. combustibles brands, and will now assess their carrying value and useful economic lives over an estimated period of 30 years.

BATs said it will commit to driving noncombustibles revenue up to 50% of its revenue by 2035, and said it will drive investment into 2024 to accelerate its transformation.

"We expect a progressive improvement to 3-5% revenue growth, and mid-single digit adjusted profit from operations growth on an organic basis at constant rates by 2026," the company said.

Write to Joe Hoppe at joseph.hoppe@wsj.com

(END) Dow Jones Newswires

December 06, 2023 02:35 ET (07:35 GMT)

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