25th Apr 2018 08:38
LONDON (Alliance News) - British American Tobacco PLC said Wednesday that it expects to register an exchange rate headwind on 2018 earnings, if rates remained at current levels.
"Looking forward into 2018, foreign currency exchange rates are a headwind for the business this year. If rates were to stay at current levels, the group would face a translational foreign exchange headwind of 7% on organic operating profit and 8% on earnings per share," Chairman Richard Burrows said in his annual meeting statement.
The shareholder meeting is scheduled to take place later during the day in London.
Burrows, however, added that the company remains on track for another good year of earnings growth, excluding the impact of currency translation, despite challenging trading conditions. He reiterated that the company's annual profit growth is expected to be skewed to the second half due to volume shipment phasing and pricing in certain markets.
The tobacco company plans to invest more than GBP1 billion in developing next generation products like vapour and tobacco heating products by the end of 2018.
Shares in the company were trading 0.4% higher at 3,760.50 pence each Wednesday morning.
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