On track to deliver FY guidance; strategic discipline and focused investment driving positive momentum
· On track to deliver FY24 guidance with H1 delivery in line with our expectations
· Expected H2 acceleration driven by the phasing of innovation in New Categories, and the benefits of H1 investment in U.S. commercial actions and related wholesaler inventory movements
· We are driving a further improvement in New Category profitability1 through our Quality Growth focus on a more balanced top-line and bottom-line delivery
· In Combustibles, U.S. commercial plans continue to gain traction despite a challenging macro-economic backdrop; in AME and APMEA we gained volume and value share, with robust H1 pricing
· Good AME performance reflecting the benefit of our multi-category portfolio; H2 weighted APMEA performance due to the phasing of New Category launches, and a strong H1 comparator
· Partial monetisation of our ITC stake enabled the initiation of a sustainable share buy-back
· Strong cash conversion with our leverage2 expected to be within our narrowed target range of 2.0-2.5x by year-end 2024.
Tadeu Marroco, Chief Executive
"Our year-to-date performance is in line with our expectations, and we are on track to deliver our guidance of low-single digit revenue and adjusted profit from operations growth on an organic3, constant currency basis in 2024.
As previously highlighted, we expect our performance to be second-half weighted, mainly driven by wholesaler inventory movements related to continued investment in our U.S. commercial actions, as well as the phasing of new launches. Our guidance also reflects ongoing macro-economic pressures, particularly in the U.S. market and continued lack of effective enforcement against the growing illicit vapour segment. As a result, we expect our H1 revenue and adjusted profit from operations to be down by low-single digits on an organic3, constant currency basis.
We are sharpening our execution and making targeted investment choices to drive our medium-term sustainable growth algorithm. We are investing to sustainably strengthen our U.S. business, accelerate innovation momentum, and enhance capabilities that support our strategic delivery.
These investments will set the business up for a stronger future. While there is still more to do, I am confident that our actions are working, and I am encouraged by our continued traction in U.S. Combustibles, initial performance of glo Hyper Pro and enhanced consumables in early launch markets as well as the continued success of our non-tobacco range veo in Europe.
https://www.investegate.co.uk/announcem ... nt/8240016
Also posted on Company News here- viewtopic.php?p=667348#p667348
I hold these in my HYP, and know others here do too, so this may be of interest here.
Ian.