British American Tobacco (BATS)

[idpickering]

Moderator Message:
Off-topic discussion moved to Shares and Share Discussions. --MDW1954

I'm struggling to find where this has moved to to be honest?

Ian.

[Darka]

I'm struggling to find where this has moved to to be honest?

Ian.

Here you go Ian:

viewtopic.php?f=33&t=38566

one can only speculate as to why it was considered inappropriate in the first place, and then the mods waste our time looking for it without even putting a link in the original thread...

[MDW1954]

... and then the mods waste our time looking for it without even putting a link in the original thread...

Ha! Sorry. I should have thought of that.

MDW1954

[idpickering]

AGM Statement.

https://www.investegate.co.uk/british-a ... 45017681W/

Probably nothing to do with the above, maybe, but BATS are up 3.6% as I type? IMB are up too, by 1.8%, by the way.

Ian (I hold).

[idpickering]

BAT reaches agreement with U.S. Department of Justice (DOJ) and U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC).

BAT today announced that it has reached agreement with DOJ and OFAC to resolve previously disclosed investigations into suspicions of sanctions breaches. These concern business activities relating to the Democratic People's Republic of Korea (North Korea) between 2007 and 2017.

British American Tobacco p.l.c has entered into a deferred prosecution agreement (DPA) with DOJ and a civil settlement agreement with OFAC, and an indirect BAT subsidiary in Singapore has entered into a plea agreement with DOJ. The total amount payable to the U.S. authorities is $635,241,338 plus interest.

The DOJ resolutions acknowledged BAT's remediation efforts to date and cooperation.

https://www.investegate.co.uk/british-a ... 05394098X/

Ian.

[monabri]

Not out of the blue, seemingly. They will need a top up!

"As announced in its Half-Year Report of 27 July 2022, BAT recognised a provision of £450 million (US$540 million), in line with the International Accounting Standards 37 requirements. Its Full Year 2023 Group guidance is unaffected by this announcement."


It's a big chunk of change..

I see BATS shareprice closed slightly up today. The announcement was at 4:05pm.

[monabri]

Having done the sums, it's not that financially onerous. I'd rather they'd not have to pay it though!

[monabri]

2.23 billion shares x £2.3088 =£5.14 billion in annual dividends. BATS have already provisioned £450m for a potential fine. So, another £77m + interest still required.

77 / 5140 ×100% = c.1.5% of the annual dividend.

[Dod101]

2.23 billion shares x £2.3088 =£5.14 billion in annual dividends. BATS have already provisioned £450m for a potential fine. So, another £77m + interest still required.

77 / 5140 ×100% = c.1.5% of the annual dividend.

Well done! Seems relatively small change for BAT. I at least tend to forget that the tobacco companies are enormous enterprises.

Dod

[idpickering]

BAT announces Tadeu Marroco as Chief Executive.

The Board announces the appointment of Tadeu Marroco as Chief Executive of BAT plc to succeed Jack Bowles who is stepping down from the Board of Directors with effect from 15 May.

Tadeu joined BAT in 1992 and was appointed to the BAT plc Board in 2019 as Group Finance Director. He has also served on the BAT Management Board since 2014, with previous roles including Regional Director for Europe and North Africa, and Group Transformation Director. A comprehensive search for a new Group Finance Director will now commence. Javed Iqbal, who has had an extensive finance career in the Group, and is currently Director, Digital and Information, takes on the role of interim Group Finance Director until a permanent successor has been appointed.

https://www.investegate.co.uk/announcement/7526061

Ian (I hold).

[idpickering]

2023 First Half Pre-Close Trading Update.

Tadeu Marroco, Chief Executive:

"I am delighted to provide this first trading update since becoming Chief Executive.

Firstly, let me address a frequently asked question: Will there be a change in our strategy? No. I am clear that the strategy we created in 2019 is right. I am confident that we can execute it successfully.

Our commitment to building A Better TomorrowTM, by reducing the health impact of our business through a multi-category portfolio of reduced-risk products*† remains. Put simply, smokers must have access to better choices. This is already a reality for smokers who have made the switch to our reduced-risk products*†. It also represents a commitment to our consumers who continue to smoke and are yet to make that transition.

I often hear A Better TomorrowTM being referred to as our strategy, when in fact it is our purpose. They are not one and the same. Our strategic aim is to progressively transform our portfolio by actively encouraging adult smokers to switch to less risky products*† compared to smoking; a transformation delivering long-term multi-stakeholder value.

We have reached a point in our transformation where sharper execution and greater emphasis on fewer, bigger priorities that deliver meaningful returns is required. We will use our market archetype model, which identifies different stages of New Category maturity to guide us, ensuring our priorities deliver on our strategy and are well articulated with clear business outcomes defined.

I am pleased with our performance in a number of key areas. We increased the number of consumers of non-combustible products1 by a further 900,000 in Q1, driving good revenue growth and further reducing losses of New Categories means we are on track to deliver our £5bn revenue ambition in 2025, with profitability in 2024, irrespective of the timing of the transfer of our Russian and Belarusian businesses.

Outside the U.S., combustible brands have been performing well as we address portfolio gaps and optimise pricing. Consistently driving value from our combustibles brands is critical, as they deliver substantial cash returns and generate value to fund New Categories and our transformation.

We are also making good progress towards de-leveraging our balance sheet, supporting our ambition to sustainably return excess cash to shareholders.

That said, there are operational issues that will have my focus. Our performance in U.S. combustibles has been disappointing. Returning combustibles to consistent value creation is critical to our multi-category strategy in the U.S. We are taking action, and while it will take some time to carefully and thoroughly implement our plans, our volume share has grown sequentially since the start of the year.

glo has had an underwhelming start to 2023, albeit recent momentum is more encouraging. glo Hyper Air is a step forward in what promises to be an exciting pipeline ahead.

I am determined to manage external risks thoughtfully and transparently through continuing to increase our engagement with regulators, policymakers, and relevant stakeholders. I have made it clear to my senior management team and the organisation that we must operate to the highest ethical standards, and this topic must remain a priority for both our employees and business partners.

2023 is going to be complex and exciting in equal measure. BAT has a wonderful heritage. I am committed to building a new, modern BAT - one that is agile and progressive, inclusive and collaborative. It is our exceptionally talented people, our pipeline of innovation and portfolio of winning brands, that will ensure we perform and transform simultaneously. I have great confidence this can be achieved.

We continue to maintain our full year 2023 guidance."

https://www.investegate.co.uk/announcement/7560646

Ian (I hold).

[idpickering]

BAT announces changes to Management Board structure and composition.

Following the appointment of Tadeu Marroco as Chief Executive on 15 May 2023, BAT announces changes to its Management Board. The new structure, roles and composition of the Management Board will support Tadeu's commitment to:

· A sharpened focus on improved execution and operational excellence

· Enhanced capabilities critical to BAT's strategic development and transformation

· A progressive and agile organisation with a collaborative and inclusive culture

Johan Vandermeulen, will be appointed to the new role of Chief Operating Officer reporting to the Chief Executive, with effect from 1 July 2023. This role will be accountable for driving business performance, operational excellence and best in class execution, with a focus on both short-term and sustainable delivery. Reporting to Johan will be:

https://www.investegate.co.uk/announcem ... s-/7580120

Ian ( I hold and am topping up my holdings soon).

[idpickering]

Dividend Finalisation Information.

On 9 February 2023, the Company announced that the Board had declared an interim dividend of 230.9p per ordinary share of 25p, payable in four equal quarterly instalments of 57.72p per ordinary share in May 2023, August 2023, November 2023 and February 2024.

The August 2023 Dividend will be payable on 18 August 2023 to shareholders registered on either the UK main register or the South Africa branch register on 14 July 2023 (the record date).

https://www.investegate.co.uk/announcem ... on/7610893

Ian (I hold and am topping up my holdings of BAT on this Thursday).

[88V8]

On 9 February 2023, the Company announced that the Board had declared an interim dividend of 230.9p per ordinary share ...

A full-year increase of 6%, which is not to be sniffed at...

V8

[idpickering]

On 9 February 2023, the Company announced that the Board had declared an interim dividend of 230.9p per ordinary share ...

A full-year increase of 6%, which is not to be sniffed at...

V8

Agreed. Thanks for your input.

Ian.

[idpickering]

Half-year Report.

Half-Year summary

- Revenue up 4.4% (being +2.6% at constant FX), driven by New Categories (revenue up 26.6%, at constant FX) - good progress towards our £5 billion New Category target by 2025

- Revenue from Non-Combustibles now 16.6% of Group revenue, up 180 bps vs FY22

- Continued strong revenue performance of Vuse and Velo - commercial plans activated for glo, launch of glo Hyper X2 Air a first step in an enhanced innovation pipeline

- New Categories financial delivery significantly improved - contributing £201 million increase to Group profit as losses reduce, on track to achieve our New Category profitability target in 2024

- Combustible pricing remains strong - good revenue performances in AME and APMEA offset the U.S., demonstrating the benefit of our global footprint

- Sequential performance improvement in our U.S. premium combustibles volume share in 2023 - with sharper portfolio management driving early signs of stabilisation

- Reported profit from operations up 61.4% (with reported operating margin up 1,560 bps to 44.2%) - as prior period impacted by charges related to Russia/Belarus, the U.S. DOJ/OFAC provision and Quantum

- Adjusted profit up 3.6% at constant FX, adjusted operating margin up 40 bps to 44.3%

- Reported diluted EPS up 118% to 176.0p; adjusted diluted EPS up 5.3% at constant FX

- Restructured Management Board - driving sharper execution, greater collaboration and agility

- Further strengthened sustainability delivery, building on Double Materiality Assessment1, including increased collaboration across our value chain to drive progress towards our sustainability targets, including Scope 3 emissions and biodiversity

https://www.investegate.co.uk/announcem ... rt/7654921

Dividend 57.72p, ex div 28 Sep 23, paid 03 Nov 23.

Ian (I hold).

[Dod101]

Thanks Ian. BAT have at some point managed to delay the payment of dividends very considerably and I am surprised that no one seems to have been bothered by it. In their Interim results statement today they tell us that on 9 February 2023, they declared an Interim Dividend of 230.9p for the year 2022. There is of course nothing interim about it. It appears to be the one and only declaration based on their 2022 results. That dividend is being paid over the next year, that is in May 2023, August 2023, November 2023 and the final part not until February 2024.

Prior to these quarterly dividends, we would have had an interim dividend announced with the results for a half year and it would have been paid in August or September of that year. Then a final would have been proposed at the announcement of their annual results and usually paid in May or June of the following year. Now the equivalent to the old Final Dividend is not being paid until November and then February of the following year. Helps their cash flow no end I am sure but it is very unfair to us shareholders. I am going to write to them and complain. They have outflanked us good and proper.

Dod

[monabri]

I guess that the growing dividend each year has been the focus. I've not held BATS that long (5 years) and, tbh, I was "locked" into the quarterly payments pattern.


Source : https://www.dividenddata.co.uk/dividend ... ?epic=BATS

[Dod101]

Thanks for your ever helpful chart monabri. Seeing that, they have been a dividend share par excellence. Unfortunately like their compatriot Imperial Brands, the share price has fallen way back. You can see from the chart where they gained their cash flow benefit; in that transitional year of 2017 when we shareholders were deprived of about 25% of our dividends.

Dod

[mike]

[...]in that transitional year of 2017 when we shareholders were deprived of about 25% of our dividends.
Dod

No, we were deprived of nothing, there was a fifth dividend that year as part of the transition (my emphasis)

With effect from 2018, the Company will move to four interim quarterly dividend payments. The dividend amount will be announced as part of the Preliminary Results announcement for the year ending 31 December 2017 in February 2018 and will be paid in four equal instalments in May 2018, August 2018, November 2018 and February 2019. As part of the transition to quarterly dividend payments, and to ensure shareholders receive the equivalent amount of total cash payments in 2018 as they would have under the previous payment policy, an additional interim dividend will be announced in December 2017 for payment in February 2018 and will be calculated as 25% of the total cash dividend paid in 2017.

https://www.investegate.co.uk/announcement/rns/british-american-tobacco--bats/interim-dividend-quarterly-dividends-timetables/4956812