BAT releases Preliminary 2019 Year End Performance Report

On February 27, 2019, British American Tobacco (BAT) released their Preliminary 2019 Year End Performance Report.

The report detailed that revenue was up from the 2018 fiscal year, despite profits and basic earnings being down.

In terms of tobacco heated products (THP) revnue, BAT reported that “THP revenue up 22.7% to £693m, with consumable volume up 31.6% to 9bn sticks.” This increase was “driven by Japan, Ukraine and Russia.”

Vapor product revenue was also up “23.4% to £392m, with consumables volume increasing 19.5% to 226m units, with volume higher across ENA and Canada.” BAT claimed that this increase helped to offset the losses that the American market suffered this past year.

Cigarette revenue for 2019 has not yet been released, but cigarette volume did fall this past year by 4.7%.

BAT anticipates that “global industry cigarette and THP volume [will] be down c.4%, with US industry volume down c.5%, in 2020” however it is important to remember that that estimate is created by combining cigarette and THP volumes. That means that THP volume could increase, but when combined with cigarette volume could decrease.



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