British American Tobacco Posts Mixed 2020 Results, Downbeat Outlook -- Earnings Review

By Adria Calatayud

British American Tobacco PLC reported results for 2020 on Wednesday. Here's what you need to know:

REVENUE: The FTSE 100 cigarette maker--which houses the Kent, Dunhill and Lucky Strike brands--said it generated revenue of 25.78 billion pounds ($35.84 billion) last year, down 0.4% on year but slightly ahead of a FactSet-provided consensus of GBP25.71 billion based on estimates by 16 analysts.

PRETAX PROFIT: BAT said it made a full-year pretax profit of GBP8.67 billion, up 9.6% on year but falling short of analysts' expectations of GBP9.85 billion, according to a consensus based on estimates by seven analysts polled by FactSet.

WHAT WE WATCHED:

-ORGANIC GROWTH: The company said adjusted revenue grew 3.3% at constant rates of exchange last year, despite an estimated coronavirus-related headwind on revenue of around 2.5%. This was better than guidance provided in December for organic revenue growth at constant currency at the high end of its previous range of 1% to 3%.

-OUTLOOK: BAT said it expects constant-currency revenue growth of between 3% and 5% in 2021, and mid-single figure growth in adjusted earnings per share, reflecting continued Covid-19 impacts. The company also said it anticipates a foreign-exchange hit of around 7% on its adjusted EPS growth for the full year. Analysts at Citi said BAT's outlook for 2021 is likely to disappoint, and that it could trigger downgrades to consensus forecasts.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

February 17, 2021 05:59 ET (10:59 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.