British American Tobacco Half-Year Report 2025
Navigating Uncertainty: British American Tobacco’s Forward-Looking Statements and Risk factors
british American Tobacco (BAT) has issued a extensive statement outlining the inherent uncertainties and potential risks associated with its forward-looking statements. While the company believes its current expectations are reasonable, a multitude of factors could lead to material deviations between projected and actual results. Investors and stakeholders are urged to exercise caution and consult detailed risk disclosures for a thorough understanding of these potential impacts.
At the core of these forward-looking statements lies a recognition that they are built upon estimates and assumptions susceptible to a wide array of risks and uncertainties. BAT acknowledges that the expectations reflected in its announcements, while deemed reasonable, may be significantly influenced by variables that could cause actual performance to diverge from current projections.
Among the key factors identified as potentially impacting future results are:
Competitive Landscape: the impact of competition from illicit trade poses a significant challenge, potentially affecting market share and profitability.
Regulatory Habitat: Adverse domestic or international legislation and regulation can introduce unforeseen hurdles and alter the operating landscape.
new Categories Strategy: The ability to successfully develop, commercialize, and deliver BAT’s New categories strategy is a critical determinant of future growth.
Supply Chain Vulnerabilities: Disruptions within the supply chain can lead to production delays, increased costs, and impact product availability.
Legal and Litigation risks: Adverse outcomes from litigation, external investigations, and disputes can have a material impact on the Group’s financial condition. Taxation Changes: Significant increases or structural changes in taxes related to tobacco, nicotine, and New Categories products can affect profitability.
Foreign Exchange exposure: Translational and transactional foreign exchange rate fluctuations can impact financial results.
Economic and Political Conditions: Changes or differences in domestic or international economic or political conditions can create a volatile operating environment.
Credit Ratings and Funding: The ability to maintain credit ratings and secure funding under the current capital structure is crucial for ongoing operations.
Workplace Safety: The impact of serious injury, illness, or death in the workplace presents operational and reputational risks.
Regulatory Decisions: Adverse decisions by domestic or international regulatory bodies can significantly influence business operations and product strategies.
Climate Change and circularity: Direct and indirect adverse impacts associated with Climate Change and Circularity initiatives present evolving challenges and opportunities.
* Cyber Security Threats: The heightened cyber-threat landscape, increased digital consumer interactions, and evolving regulations necessitate robust cybersecurity measures.
For a more in-depth understanding of the reasons why actual results and developments may differ materially from expectations, BAT directs readers to the information contained within the “Cautionary statement,” “Group Principal Risks,” and “Group Risk Factors” sections of its 2024 Annual Report and accounts and Form 20-F. Further details are also available in BAT’s filings with the U.S. Securities and Exchange Commission (SEC), accessible via the SEC website (http://www.sec.gov) and the BAT website (http://www.bat.com).
It is important to note that no statement within this announcement is intended as a profit forecast. Moreover, no statement should be interpreted as a guarantee that BAT’s earnings per share for current or future financial years will match or exceed historical published figures. Past performance is not indicative of future results, and individuals requiring advice should consult an self-reliant financial adviser.BAT undertakes no obligation to update or revise these forward-looking statements,whether due to new information,future events,or any other reason. Readers are strongly cautioned against placing undue reliance on such statements.
The company also clarifies its financial reporting practices, particularly concerning its U.S. operations and Reynolds American. Financial statements and information for these entities are initially prepared under U.S. GAAP. This information is then converted to International Financial Reporting Standards (IFRS) for consolidation within the group’s results. Any financial information pertaining to the U.S. or Reynolds American provided in this announcement serves as an description or supplement to their primary U.S. GAAP-based financial statements.
BAT highlights that its products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation. Consequently,no reduced-risk claims will be made for these products without prior agency clearance.