Why British American Tobacco Shares Are Surging Today
Portfolio Pulse from Lekha Gupta
British American Tobacco PLC (NYSE:BTI) shares surged after reporting preliminary 2023 results, showing a revenue decline of 1.3% but organic growth of 3.1%. New Categories segment revenue increased by 15.6% Y/Y, contributing significantly to total profit. The company also highlighted a review of its stake in India's ITC and anticipates low-single-digit organic revenue and adjusted profit growth in 2024, despite expecting global tobacco industry volume to decline by 3%. Investments are planned to strengthen the U.S. business and accelerate innovation.
February 08, 2024 | 2:40 pm
News sentiment analysis
Sort by:
Ascending
POSITIVE IMPACT
British American Tobacco reported a slight revenue decline but strong organic growth and significant profit contribution from the New Categories segment. The company is optimistic about future growth despite industry volume declines.
The positive earnings report, highlighting organic growth and profitability in the New Categories segment, is likely to instill investor confidence in BTI's strategic direction and operational efficiency. The announcement of reviewing its stake in India's ITC and future growth projections despite industry challenges further supports a positive outlook.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100