BTAFF - British American Tobacco: 2023 Results Reflect Multiple Positives
2024-02-13 13:18:54 ET
Summary
- British American Tobacco's price jumped by 7% on its 2023 results, that reflected revenue growth in line with guidance and adjusted earnings growth as well.
- Significantly, the new categories business saw robust revenue growth, increased its contribution to revenue and turned profitable on an operating basis too.
- With the company expecting continued growth in revenues and operating earnings, dividend growth can be expected too. Also, its market multiples are competitive and its dividend yield is high.
Since I last wrote about the tobacco stock British American Tobacco ( BTI ) ( BTAFF ) or BAT in short, in November last year, its returns have remained weak. If it's any consolation, the extent of weakness has reduced. At the time, its year-to-date [YTD] total returns were down by 19%. With YTD returns for 2024 not comparable, since we are less than two months into the year, the better timeframe to consider is one-year returns, which show an 8.5% contraction....
British American Tobacco: 2023 Results Reflect Multiple Positives