BAT's cigarette volumes grew in the US, Brazil, Turkey, Bangladesh and Russia, but this was offset by declines in duty-free sales amid travel restrictions and a sales ban in South Africa between March and August.
Chief executive Jack Bowles said in today's results he was “determined that we make a positive contribution to society” by accelerating growth of new categories.
He added: “We have a clear purpose to reduce the harm footprint of our business. We are uniquely positioned to encourage the switch to reduced risk products.”
The group reported a 4.8% rise in 2020 adjusted profits to £11.36 billion and said it would increase its full-year dividend by 2.5% to 215.6p for a pay-out ratio of 65% of earnings.
Freetrade analyst, David Kimberley said the results showed why the cigarette giant still made an attractive proposition for investors.
He added: “Beyond the commitment to another year of hefty dividend payouts, BAT remains a highly profitable business with lots of free cash flows and extremely attractive margins.”
