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Premarket London: BAT Upbeat Despite U.S. Vaping Crackdown

Published 2019-11-27, 02:21 a/m
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Investing.com -- Here is a summary of regulatory releases from the London Stock Exchange on Wednesday, 27th November. Please refresh for updates.

Tobacco giant British American Tobacco (LON:BATS) said it’s “on track for a strong year”, with adjusted revenue growth and operating profit both in the upper half of their respective target ranges.

  • Earnings per share are expected to rise by just under 10%, helped by a 120-basis point contribution from currency effects. That will reverse into a headwind of 200 basis points next year, it said.

  • In a pre-close trading statement, the company was unfazed by recent moves in the U.S. to crack down on various new forms of nicotine consumption, saying: “We believe that the issues around vaping in the U.S. should lead to a better and stronger regulatory environment in which we are well placed to succeed.”

  • It still expects U.S. consumption of tobacco to fall around 5.5% this year, and by 4%-6% next year, but has managed to keep its own sales declining at a slower rate. It has raised its market share in the U.S. by 30 basis points so far this year.

  • Rio Tinto (LON:RIO) has approved a $749 million investment in its existing Greater Tom Price operations in the Pilbara region of Western Australia. The investment is in line with prior guidance.
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