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BAT Cuts FY20 Earnings, Revenue Growth View; To Reach £5 Bln Revenue Target In FY25

British American Tobacco plc (BATS.L,BTI) Tuesday said it now anticipates fiscal 2020 constant currency adjusted earnings per share growth at mid-single figure, compared to previously expected high-single figure.

Further, constant currency adjusted revenue growth is now expected in the 1 percent to 3 percent range, compared to previously expected 'around the lower end of the 3 percent to 5 percent range'

The company said it continues to invest more in New Categories and make further progress towards its 5 billion pounds revenue ambition. However, the company sees growth this year to be slower, and now anticipates reaching the 5 billion pounds target in 2025, while it previously expected to reach the target in 2023/24.

In its trading update, BAT said it now expects a full-year headwind of about 3 percent in total from COVID-19 on constant currency adjusted revenue.

The company continues to see good pricing and strong volume and value share growth across combustibles business, as well as good share growth across all three of the new categories - vapour, tobacco heating and modern oral.

Results in developed markets, which represents about 75 percent of Group revenue, are strong, with continued good pricing. Meanwhile, the impact of COVID-19 in emerging markets has been more pronounced.

In New Categories, the business is performing well, with share growth in all three categories.

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