British American Tobacco reported a significant surge in profit and strong financial performance, driven by its US business and "New Categories" growth.
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British American Tobacco (BAT) has so far used about £1.1 billion - or close on R24 billion - to buy back its own shares under its multi-year repurchase programme, returning capital to shareholders.
This figure is as of Wednesday, when the company announced it had acquired 111,147 shares at prices ranging between £43.55 and £43.01.
As of February, BAT has a market capitalisation of $127.72 billion (R2 trillion), making it the world’s 164th most valuable listed company, according to companiesmarketcap.com.
British American Tobacco reported a significant surge in profit and strong financial performance for the year to December, driven by its US business and "New Categories" growth.
However, it is closing its only South African plant due to the proliferation of illegal cigarettes.
BAT is one of the largest tobacco companies globally, with a portfolio of more than 200 brands including Lucky Strike, HB, Pall Mall, Viceroy and Javaanse Jongens.
The cigarette company’s share buy-back campaign is based on resilient cash flows and reduces the number of shares in circulation.
As a result, buy-backs increase each remaining shareholder’s proportional ownership of the company, which can lift earnings per share even if overall profit growth remains unchanged.
Because the repurchases take place on the open market, they can also provide a more tax-efficient way of returning cash to shareholders compared with dividends.
BAT’s repurchases form part of the programme originally announced for £700 million in 2024 and £900 million in 2025, later increased by £200 million, taking the 2025 component to £1.1 billion.
Chief executive Tadeu Marroco reaffirmed the group’s commitment to shareholder returns during the February presentation of the company’s full-year results to December.
Marroco said BAT remained focused on delivering cash returns through dividends and share buy-backs.
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