Yahoo Finance Premarket London: BAT Upbeat Despite U.S. Vaping Crackdown
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 shaved its forecasts for growth in its new-generation tobacco products but was unfazed by recent moves in the U.S. to crack down on various new forms of nicotine consumption. “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.
Pub owner and brewer Marston’s (LON:MARS) said it's on track to meet its target of cutting debt by 200 million pounds ($258 million) by 2023 after reporting a pretax loss of 20 million pounds in the year through September. Underlying earnings per share fell to 13.5 pence but the company held its dividend at 4.8p.
The brewer has been reshuffling its asset portfolio against a background of steady decline in the pub business and has benefited more than many from direct sales of its beers to supermarkets and off-licenses. Total volumes in brewing rose 1% on the year.
Marston’s also said its sharpened focus on food-led pubs is starting to bear fruit, adding that it’s “well prepared” going into the crucial holiday season.
Related Articles
Investors see value in Canada's TSX but smaller gains for 2020: Reuters poll
Manchester City owner draws $500 million investment from private equity firm Silver Lake
