Warning: set_time_limit(): Cannot set max execution time limit due to system policy in /customers/b/b/b/brandspurng.com/httpd.www/wp-config.php on line 92 British American Tobacco posts H1 2020 profit rises despite volume decline - Brand Spur

British American Tobacco posts H1 2020 profit rises despite volume decline

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British American Tobacco reported its first-half profit edged higher, as sales of higher-priced items and cost cuts offset a fall in volume.

The company said its profit from operations rose 3.3% to £5.37 billion, with revenue up 1.1% to £12.27 billion. Its adjusted earnings per share of 157.8 pence came in ahead of a FactSet-compiled analyst estimate of 156.54 pence on sales of £12.16 billion.

MULTI-CATEGORY STRATEGY DELIVERS GROWTH IN DIFFICULT TIMES

Volume and Share

Total cigarette and THP volume declined 6.3% to 315 billion sticks (30 June 2019: 336 billion sticks) with cigarette volume down 6.5% and THP volume up 9.1%.

COVID-19 led to a sustained impact on our GTR business due to international travel restrictions, acting as a negative drag on total cigarette and THP volume of 1.1%. Excluding GTR, cigarette and THP volume declined 5.3% against an estimated industry decline of around 6%.

British American Tobacco posts H1 2020 profit rises despite volume decline - Brand Spur

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While cigarette volume in Developed Markets has been largely unaffected, volume in Emerging Markets has been impacted by government-mandated factory closures and sales restrictions including in South Africa, Mexico and Argentina, as well as the severity and duration of lockdowns in a number of other markets, particularly in APME.

Volume was also down in Indonesia (driven by local pricing and tax) and Pakistan (as illicit trade grew).

In the key markets, value share increased 20 bps while volume share5 was 50 bps up against 2019; and Strategic Cigarette and THP volume was down 3.4%, with volume share up by 30 bps and value share up 40 bps, with growth in all regions.

The company stated that its “new categories” revenue growth of 14.7%, which includes 9.1% growth for tobacco heated products, 41% growth in vapour and 67% growth in what it calls “modern oral.”

What did BAT say?

Jack Bowles, Chief Executive said:

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“The business is performing well in difficult circumstances as our continued focus on our three key priorities has enabled us to rapidly adapt to the current environment.

  1. We are building A Better Tomorrow
    •  10% of our revenues come from non-combustible categories
    •  We are making good progress towards our target of 50 million non-combustibles consumers by 2030
    •  Invested an additional £250 million in New Categories marketing
  2. We are continuing to deliver adjusted revenue, profit from operations and earnings growth at constant rates
    •  Strong cigarette price/mix (8.5%) reflects the strength of our differentiated brand portfolio
    •  Which offsets lower cigarette and THP volume (down 6.3%)
    •  And the impact of COVID-19 of approximately -4% on adjusted revenue in the first six-months of 2020
  3. Multi-category consumer acquisition drives share growth
    •  Our Non-Combustibles consumer base increased to 11.6 million (up 1.1 million from December 2019), is an increase of 2.7 million consumers on a rolling 12-month basis from June 2019
    •  New categories revenue grew 12.7% (at constant rates)
    •  We are growing volume share in THP and value share in Vapour, with Modern oral adjusted revenue up 71% (at constant rates)
  4. We are delivering excellent combustibles volume and value share growth
    •  Cigarette volume share (up 50 bps) and value share (up 20 bps)
    •  Driven by the strength of the Group’s differentiated cigarette portfolio
    •  Strategic cigarettes and THP portfolio now accounts for 66% of total cigarettes and THP volume
    •  US cigarette volume share up 10 bps and value share up 30 bps
  5. We are navigating COVID-19 supported by a diverse market footprint
    •  Consumption trends in Developed Markets (75% of Group adjusted revenue) remain robust, with good pricing and little evidence to date of accelerated down-trading
    •  In Emerging Markets, we are growing cigarette and THP volume share strongly, up 70 bps
    •  Volumes are strong where we see illicit trade reduction and can leverage our operational agility
    •  Weaker industry volume where there have been stricter lockdown measures (for instance South Africa)
    •  We continue to anticipate a full year headwind of around 3% from COVID-19 on a constant currency adjusted revenue
  6. We are committed
    •  We are on track to deliver against our 2020 guidance
    •  We maintain our medium-term post-COVID-19 guidance of 3-5% constant currency adjusted revenue growth and high-single figure constant currency adjusted diluted EPS growth
    •  We are committed to our 65% dividend payout ratio
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I would like to thank our staff, customers, partners and suppliers for working tirelessly through this difficult period. We expect the coming months to bring continued uncertainty. Nevertheless, we will continue to invest in accelerating our strategy. Building on our excellent momentum, we are confident that we will exit this crisis as a stronger and better business”

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British American Tobacco posts H1 2020 profit rises despite volume decline - Brand Spur

Trend Micro Placed in 2021 Magic Quadrant for Endpoint Protection Platforms

Recognized for Completeness of Vision and Ability to Execute

 

HONG KONG SAR - Media OutReach - 13 May 2021 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecurity leader, today announced that it has been positioned by Gartner as a Leader in the Magic Quadrant for Endpoint Protection Platform for its offering, Trend Micro Apex One. The evaluation was based on specific criteria that analyzed the company's overall completeness of vision and ability to execute.


Trend Micro is continually innovating and anticipating emerging threats. Our flagship Apex One endpoint protection platform features broad coverage against today's most critical threats. Our customers are protected using a range of techniques including virtual patching, which immediately protects against exploits until the vendor patch is applied.


Read the full Magic Quadrant for Endpoint Protection Platform report at: https://resources.trendmicro.com/Gartner-Magic-Quadrant-Endpoints.html

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At the heart of the company's cybersecurity platform is Trend Micro Vision One, which delivers visibility and XDR using telemetry from Apex One in addition to email, servers, cloud workloads and networks for faster detections and investigations.

Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of the providers in markets where growth is high and provider differentiation is distinct. Providers are positioned into four quadrants: Leaders, Challengers, Visionaries and Niche Players. The research enables you to get the most from market analysis in alignment with your unique business and technology needs.

* Gartner disclaimer: Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Trend Micro

Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, the platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 65 countries, Trend Micro enables organizations to simplify and secure their connected world. www.trendmicro.com.hk


#TrendMicro


British American Tobacco posts H1 2020 profit rises despite volume decline - Brand Spur
- Advertisement -
spot_imgspot_img

Latest News

Trend Micro Placed in 2021 Magic Quadrant for Endpoint Protection Platforms

Recognized for Completeness of Vision and Ability to Execute

 

HONG KONG SAR - Media OutReach - 13 May 2021 - Trend Micro Incorporated (TYO: 4704; TSE: 4704), a global cybersecurity leader, today announced that it has been positioned by Gartner as a Leader in the Magic Quadrant for Endpoint Protection Platform for its offering, Trend Micro Apex One. The evaluation was based on specific criteria that analyzed the company's overall completeness of vision and ability to execute.


Trend Micro is continually innovating and anticipating emerging threats. Our flagship Apex One endpoint protection platform features broad coverage against today's most critical threats. Our customers are protected using a range of techniques including virtual patching, which immediately protects against exploits until the vendor patch is applied.


Read the full Magic Quadrant for Endpoint Protection Platform report at: https://resources.trendmicro.com/Gartner-Magic-Quadrant-Endpoints.html

"The endpoint has become a key battleground as determined threat actors try to take advantage of the pandemic to target distributed workforces and vulnerable remote access infrastructure. But throughout this difficult period, we've been there for our customers," said Wendy Moore, vice president of product marketing for Trend Micro. "I'm delighted to see us recognized again for doing what we do best: Protecting global organizations through innovative, cloud-first and platform-based security. We will continue to focus on offering simple, robust and industry-leading protection through our cybersecurity platform."

At the heart of the company's cybersecurity platform is Trend Micro Vision One, which delivers visibility and XDR using telemetry from Apex One in addition to email, servers, cloud workloads and networks for faster detections and investigations.

Magic Quadrant reports are a culmination of rigorous, fact-based research in specific markets, providing a wide-angle view of the relative positions of the providers in markets where growth is high and provider differentiation is distinct. Providers are positioned into four quadrants: Leaders, Challengers, Visionaries and Niche Players. The research enables you to get the most from market analysis in alignment with your unique business and technology needs.

* Gartner disclaimer: Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.


About Trend Micro

Trend Micro, a global cybersecurity leader, helps make the world safe for exchanging digital information. Fueled by decades of security expertise, global threat research, and continuous innovation, Trend Micro's cybersecurity platform protects hundreds of thousands of organizations and millions of individuals across clouds, networks, devices, and endpoints. As a leader in cloud and enterprise cybersecurity, the platform delivers a powerful range of advanced threat defense techniques optimized for environments like AWS, Microsoft, and Google, and central visibility for better, faster detection and response. With 7,000 employees across 65 countries, Trend Micro enables organizations to simplify and secure their connected world. www.trendmicro.com.hk


#TrendMicro


British American Tobacco posts H1 2020 profit rises despite volume decline - Brand Spur
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