British American Tobacco shares tumble


British American Tobacco (BAT) has reported their shares have dropped as annual sales have decreased due foreign exchange headwinds.

BAT makes Camel and Lucky Strike cigarettes has reported revenue fell £24.3bn by 2.3% in 2018, taking out the foreign currency effects revenue increased to £24.5bn by 25%.

The cigarette company reported a profit of £8.35bn in 2018 compared to £29.53bn the year before.

Shares for BAT were down 2.9% to 2,713.5p.

Nicandro Durante, outgoing chief executive said, “BAT performed well in 2018, exceeding our target of high single-figure adjusted constant currency EPS (earnings per share) growth, whilst continuing to invest in long-term sustainable returns.

Durante said the full-year effect of the Reynolds American acquisition and foreign exchange headwind distorted the group’s results, but “on an adjusted, constant currency, representative basis, this was a strong performance across the business.”

Durante also acknowledged there is investor uncertainty over vape products and the proposed potential regulatory changes surrounding vaping.

However, Durante said that BAT has a “long experience of managing regulatory developments, a track record of delivering strong growth while investing for the future, and an established multi-category approach.

“Looking into 2019, we are confident of another year of high single-figure adjusted constant currency earnings growth and this confidence is reflected in our board’s proposal to increase the dividend by 4%.”