The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Ray Wium - Anchor Stockbrokers - Analyst
: Good day, Tadeu and Soraya. Thank you for the opportunity to speak with you. I just want to come back to the Canada settlement. As far as I have
it, I think the plaintiffs have to approve the plan. I think it's in this coming week, if I'm not mistaken.
And then I just want to know the uncertainty probably is how -- or maybe you can just shed some light -- how do you plan -- or is there anything
in the pipeline how you will split the liability between the existing tobacco companies? Maybe if you can give us an idea whether it will be based
on market share currently or past market share. So that is my first question.
And just the other one is an interesting one. I was just curious about Russia. I mean, you have exited Russia. Can you remind us whether you have
an option to repurchase the Russian business and if there's a timeframe? The reason I'm asking is just -- I've just noted the Russian business has
done actually quite well over the past nine months. Thank you.
Question: Ray Wium - Anchor Stockbrokers - Analyst
: Okay. Thank you very much.
Question: Gaurav Jain - Barclays Capital - Analyst
: Hi, morning, Tadeu. Morning, Soraya. I have three questions. One is that I do appreciate that it's difficult to give any indication on 2025 right now
due to the Canadian situation. But, like, any thoughts on the revenue side because that will not be impacted?
So you have mentioned that it is a transition year. So should we expect 2%, 3% kind of constant currency revenue growth next year? If you could
comment on that.
Question: Gaurav Jain - Barclays Capital - Analyst
: Sure. Thank you. Second question is on Canada. And the way you have explained it earlier is that if we exclude all the cash and if we remove the
EBITDA, then it is about 0.3x increase in leverage. Now there are a lot of investors who do wonder whether you can exceptionalize this Canadian
penalty, that 85% penalty for the first five years, which will keep stepping down.
It is not that it is a perpetual penalty, even though it might last for 25 years. And if rating agencies agree to it, then your leverage might not go
about 0.3x. So how should we be thinking about it?
Question: Gaurav Jain - Barclays Capital - Analyst
: That's very helpful. And my last question is on debt. So if I was looking at the pound-dollar rate. It hasn't really moved versus December 31 or June
30, when the last balance sheet debt number was calculated. But you are highlighting that leverage is higher because of dollar depreciation. So I
just wanted to understand that dynamic better (multiple speakers) dollar.
Question: Gaurav Jain - Barclays Capital - Analyst
: Thank you so much.
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DECEMBER 11, 2024 / 8:30AM, BATS.L - Q4 2024 British American Tobacco plc Trading Statement Call
Question: Faham Baig - UBS - Analyst
: Good morning, everyone. Thanks for taking my question. The first one is on the US. We've recently seen an improvement in the MSA data over the
last couple of months. And you also highlight a better second-half performance from yourselves.
I guess, there are two things. There's the vapor enforcement and the macro impact. You're suggesting no vapor enforcement near term, but the
macro could be improving. I guess, if we look out to 2025 and the 5% to 7% range you've mentioned, if we only have the macro improvement, do
you think we can get to that range? Or do you also need for the vapor enforcement to have a positive impact on cigarette volumes?
And the second question is on Velo, which continues to perform exceptionally well, probably doesn't get sufficient spotlight. What markets and
types of consumers are driving Velo's performance? And if you can shed some more light on the US, what you expect from the performance of the
new innovations going into '25, that'd be much appreciated. Thanks.
Question: Faham Baig - UBS - Analyst
: I think overall and the US, if you are able to shed more light.
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DECEMBER 11, 2024 / 8:30AM, BATS.L - Q4 2024 British American Tobacco plc Trading Statement Call
Question: Faham Baig - UBS - Analyst
: Thanks, Soraya. Thanks, Tadeu.
Question: Damian McNeela - Deutsche Numis - Analyst
: Good morning, everybody. Thank you for taking the questions. Two for me, please. Firstly, on the combustible performance, I think you sort of
talked about at the first half, volumes down 2%. Obviously, we know about the US. But France and Sudan were called out with sort of improving
outlook for Turkey and Mexico.
I was just wondering whether there's any change in the sort of underlying dynamics of key markets through the second half. If you could comment
on that, please? And then just a follow-up on the Velo Plus rollout. Would you be able to sort of give an indication of how quickly you expect to
get to full national distribution in the US, please?
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DECEMBER 11, 2024 / 8:30AM, BATS.L - Q4 2024 British American Tobacco plc Trading Statement Call
Question: Damian McNeela - Deutsche Numis - Analyst
: Yeah, very clear. Thank you.
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