FY 2021 expectations:
o Upgraded constant currency revenue growth of above 5%, ahead of our 3-5% guidance
o Mid-single digit adjusted diluted constant currency EPS growth
o Strong operating cashflow conversion in excess of 90%
o Leverage reducing to around c.3x Adjusted Net debt4/ Adjusted EBITDA5 by year end
Driven by:
o Accelerating acquisition of non-combustible product consumers1, up +1.4m to 14.9m in Q1, with our New Category products now sold in 74 markets across 53 countries
o Continued acceleration of New Category volume and revenue growth, with market share6 gains across all three New Categories in all key markets
o Further increased New Category investment, weighted to H1, capitalising on our good momentum
o Strong combustibles pricing and robust volume
o Negative geographic mix driven by a continuing recovery in Emerging Markets
o No expected recovery in Global Travel Retail until 2022
o A robust US performance, driven by New Category growth and strong combustible pricing
o Associate income reflecting the impact of the COVID environment in India on ITC, given our share of results are reported one quarter in arrears
o Operating cash conversion weighted to the second half due to the phasing of Excise and MSA payments relative to the prior year
o Translation headwind of c.-8% on adjusted diluted EPS growth, and a transactional headwind of c.-2% on adjusted profit, for both H1 and FY 2021, applying current foreign exchange spot rates7
https://www.investegate.co.uk/british-a ... 00130887B/