British American Tobacco (BAT) announced that revenue was up 3.7 per cent and New Categories revenue grew by 45 per cent.

In its half-year report to 30 June, BAT reported adjusted revenues of GBP 12.87 billion, up 3.7 per cent year-on-year, while profits from operations jumped 4.9 per cent to GBP 5.6 billion. Revenues were lifted by a 45.5 per cent jump in the new categories division to GBP 1.28 billion in the period. BAT said the number of consumers broke the 20-million milestone for the first time, rising by 2.1 million to 20.4 million.
CEO Jack Bowles commented: “I am very proud that our continued New Categories growth momentum is driving Faster Transformation, with revenue growth of 45 per cent in the first half of 2022, on top of 51 per cent growth in FY2021. We are delivering both strong operational performance and transforming the business. (…) Our three strong, global New Category brands underpinned our revenue performance, with non-combustibles now representing 14.6 per cent of revenue. Revenue growth was ahead of volume growth in all three New Categories. We are confident in delivering GBP 5bn New Category revenue, and profitability, by 2025.”

Profit from operations on a reported basis was down 25.0 per cent at GBP 3.68 billion, with reported operating margin down 11.7 ppts to 28.6 per cent. This was driven by impairment charges of GBP 957 million recognised in respect of BAT’s decision to transfer its Russian operations. “We are not immune, of course, to the increasing macro-economic pressures, exacerbated by the conflict in Ukraine. However, we are well positioned to navigate the current turbulent environment due to our powerful brands, operational agility and continued strong cash generation”, Bowles said.