|Bid||2,549.00 x 0|
|Ask||2,548.50 x 0|
|Day's Range||2,525.50 - 2,584.50|
|52 Week Range||30.97 - 3,507.00|
|Beta (5Y Monthly)||0.66|
|PE Ratio (TTM)||9.21|
|Earnings Date||Jul. 31, 2020|
|Forward Dividend & Yield||2.10 (8.34%)|
|Ex-Dividend Date||Oct. 01, 2020|
|1y Target Est||3,825.26|
(Bloomberg) -- British American Tobacco Plc’s earnings demonstrated the ability of the cigarette industry to keep raising prices to compensate for lower consumption amid the Covid pandemic.Adjusted operating profit rose 3.3% at constant rates to 5.37 billion pounds ($7.1 billion). Analysts expected 5.33 billion pounds.Key InsightsTobacco again showed its ability to withstand a crisis, even though the outlook is a bit more muted than at the start of the year. The maker of Lucky Strike cigarettes last month cut its sales growth forecasts amid weaker sales in emerging markets due to lockdown measures.In markets such as South Africa, Mexico and Argentina, BAT’s revenue has suffered as governments imposed restrictions on the sale of cigarettes or ordered factory closures. In the U.S., BAT now expects industry volume to drop only 2.5%, rather than 4%, as consumer demand is performing better.The big question is how long BAT can lean on pricing so much to offset lower consumption. Higher prices and more expensive products added 8.5 percentage points to sales growth, while shipments dropped 6.3%.Market ReactionBAT’s shares have dropped 18% this year.Get MoreSee more details.Read the statement.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
News that Philip Morris International (NYSE: PM) was awarded a reduced-risk label for its IQOS heated tobacco device indicates Altria (NYSE: MO) was smart to have a backup plan in place for the electronic cigarette market. Because its investment in JUUL Labs has all but blown up in its face, Altria's ability to still profit from e-cigs through its IQOS marketing and distribution agreement with Philip Morris shows why a company should not put all of its eggs in one basket.
Whilst it may not be a huge deal, we thought it was good to see that the British American Tobacco p.l.c. (LON:BATS...