British American Tobacco delivered decent financial results and successfully navigated a progressively challenging macro environment. Revenue growth was driven by the New Category growth and a strong combustibles price mix. In New Categories, the company delivered strong revenue growth driven by Geo expansion, innovation, and share growth. Vuse strengthened its first position in the U.S. The company’s closed system value share in Europe grew strongly. It also extended its value share leadership position in Canada. British American Tobacco launched the first connected Vapour device of the Group, Vuse ePod2 plus, that drives increased pod consumption. The company launched its modern disposable, Vuse Go which has volumes and a premium price position that is accretive to the company’s ePod platform. In THP, the sequential revenue growth of glo accelerated, and consumable volume growth outpaced. Glo Hyper X2 has been delivering an enhanced product experience with positive results in Japan. The company broadened its price laddering with the new Lucky Strike consumables that complement the existing ranges. Also, it had experienced its multi-category offering with the Velo city pilot that delivers attractive margins. We give British American Tobacco a ‘Buy’ rating with a revised target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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