Therefore, if they go with a 5% increase the coming year should pay a total dividend of GBP 2.29 In terms of the dividend, we believe the dividend will be increased by 5%. BTI has a total of 2,235,865,536 ordinary shares issued. As of 15th December, they held 221 million shares in Treasury. These shares are not canceled but kept in treasury. They managed to achieve this on 15 December 2022, as they then had repurchased 59.54 million ordinary shares in 2022 at a volume-weighted average price of GBP 33.59 per ordinary share for a total consideration of GBP 2 billion. When BTI announced their FY 2021 back in February of 2022, they communicated that their intention was to buy back shares of GBP2 billion in the calendar year of 2022. The question is for how long the rates will stay elevated.īTI will release their 2022 FY preliminary and unaudited results on the 9th of February 2023. Hopefully, BTI will not be hit too hard by higher interest costs as they have a 90% fixed debt profile with an average maturity of over 10 years. With GBP 44.88 billion in debt, we should be concerned about the speed and significance of global interest rate rises. In the first nine months of 2022, the new category segment delivered another 3.2 million new consumers. Although it was not profitable in the past, this is changing and management said that it is now becoming a significant contributor to their performance. New Category products continue to deliver growth in volume, revenue, and market share. From this, we learned that they expected the EPS for 2022 FY to increase by roughly 5% from the year before. On the 8th of December last year, BTI came out with an update on their operation. When they came out with their FH 2022, their revenue was up 5.7% and the profit from operation came in at GBP 5.65 billion, which was 7.8% higher than the year before. When FY 2021 came out, management guided for an increase to EPS of high single-digit for 2022. Perhaps investors interested in BTI are reevaluating the risks of owning it. It is during the few trading days of 2023 that we have seen BTI go in the opposite direction to the S&P 500. After all, people don't stop smoking.īTI share price since 24 February 2022 ((SA)) This surprised us somewhat, as throughout 2022 it felt like it held up well as we watched the general market fall. The share price is down 12.4% since that time. It is almost a year since we last covered British American Tobacco ( NYSE: BTI) here in SA. BTI logo (British American Tobacco) Investment thesis
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