BAT Anticipates Currency Exchange Impact On Operating Profits
British American Tobacco has said that current currency exchange rates could influence its operating profits for the half-year and full-year.
In a trading update ahead of a closed period on 27 June, BAT said that 'if exchange rates stayed the same for the remainder of the year, there would be an adverse transactional impact on operating profit of 2% for both the first half and the full year'.
It added that 'For translation, this would be a tailwind on operating profit of approximately 13% for the half year and 7% for the full year.'
Full Year Volume
The group said that first half revenue is likely benefit from 'good pricing', but full year volume for the full year is likely to be down around 4%. However, this is 'expected to outperform the industry', it said.
It said that the trends in its key markets that were highlighted in its preliminary results in February remain largely unchanged, with 'Canada, Romania, Bangladesh and Ukraine performing well and conditions remaining challenging in Brazil, South Africa, Malaysia, France and the UK'.
It said that its 'glo' tobacco device is 'exceeding our expectations', and the business is planning a larger Japanese and international rollout in the second half of the year.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.