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British American Tobacco said reported lower annual profit on volume declines and legal and restructuring charges. The tobacco giant also said performance of revenue in its 'new categories' division, which included vaping products, would be second-half weighed following a regulatory clampdown in the US.
For the year ended 31 December, pre-tax profit fell to £7.9m from £8.3m and revenue increased 5.7% to £25.9bn as lower volumes held back growth.
Total cigarette and tobacco heating products (THP) volume declined 4.4% to 677bn sticks, with cigarette volume down 4.7% and THP volume up 31.6%.
The company flagged a number of charges related to Canada (Quebec £436m), amortisation and impairment of trademarks (£481m), the group's restructuring programme Quantum (£264m), other litigation including Engle in the US (£236m), Russia (in relation to an excise dispute, £202m) and Indonesia (goodwill impairment £172m.
New categories revenue grew 36.9% or 32.4% to £1,214m.
The dividend was up 3.6% to 210.4p.
Looking ahead, the company said it expected global industry cigarette and THP volume to be down about 4%, with US industry volume down 5% in 2020.
'We expect adjusted revenue growth in the 3-to-5% guidance range (at constant rates of exchange), together with continued operating margin improvement and further progress in new categories towards our 2023/24 ambition of £5bn in revenue,' it added. 'Results, in particular new category revenue growth, will be weighted to the second half of the year.'
At 8:12am: (LON:BATS) British American Tobacco PLC share price was +16.5p at 3236p