BAT and Altria continue to perform well and are on track for near and long-term goals.
British American Tobacco and Altria Group Inc. to perform well.
In 2021 BAT generated over £2 billion (US$2.51 billion) in its new category revenues, ensuring the company stays on track to meet its 2025 target of £5 billion (US$6.27 billion). It also increased its consumer base of non-combustible products by 4.8 million to 18.3 million, on track to reach its target of 50 million consumers of non-combustible products by 2030. Non-combustible products now account for 12% of group revenue, up from just 4% in 2017. In some focus markets, such as Japan, Sweden and the UK, around 40% of BAT’s revenue now comes from non-combustible products
In its 2022 outlook, BAT expects to report revenue growth of 2-4% and mid-single figure constant currency adjusted earnings per share this year, with growth second-half weighted. Its medium-term guidance remains unchanged, as the company expects to deliver 3-5% constant currency group revenue growth and high-single figure EPS growth by 2025.
Altria’s reported earnings for Q1 2022 beat analyst estimates, reaffirming full-year estimates despite a slight revenue dip from the year-quarter.
“We are off to a strong start to the year and believe our businesses are on track to deliver against their full-year plans, “said Altria c.e.o., Billy Gifford. “Our tobacco businesses performed well in a challenging macroeconomic environment and we continued to make progress toward our vision to responsibly lead the transition of adult smokers to a smoke-free future.”
The company’s first quarter revenue was reported at US$5.89 billion; revenue excluding excise taxes was US$4.82 billion, 1.3% less from last year. The drop in net revenues was attributed to the sale of Altria’s wine business in October 2021; excluding the wine segment, net revenues were essentially unchanged.
Altria reaffirmed it guidance to deliver 2022 full-year adjusted diluted EPS in a range of US$4.79 -US$4.93, representing a growth rate of 4-7% from an adjusted diluted EPS base of US$4.61 in 2021. The company continues to expect that 2022 adjusted diluted EPS growth will be weighted toward the second half of the year.