Last Thursday $BATS.L (British American Tobacco) reported earnings, let's take a quick look.
๐ฅ๐ฒ๐๐ฒ๐ป๐๐ฒ: ยฃ๐ญ๐ฎ.๐ฌ๐ณ ๐๐ป ๐๐ ยฃ๐ญ๐ฎ ๐๐ป ๐๐ฆ๐ง (๐ฑ๐ผ๐๐ป ๐ฎ.๐ฎ% ๐ฌ๐ผ๐ฌ) โ
๐๐ฃ๐ฆ: ยฃ๐ญ.๐ฒ๐ฎ ๐๐ ยฃ๐ญ.๐ฑ๐ฐ ๐๐ฆ๐ง (๐ฑ๐ผ๐๐ป ๐ฌ.๐ญ% ๐ฌ๐ผ๐ฌ) โ
When it comes to guidance for the full year it was improved: ๐ฟ๐ฒ๐๐ฒ๐ป๐๐ฒ ๐ถ๐ ๐ป๐ผ๐ ๐ฒ๐ ๐ฝ๐ฒ๐ฐ๐๐ฒ๐ฑ ๐๐ผ ๐ด๐ฟ๐ผ๐ ๐ฐ๐น๐ผ๐๐ฒ ๐๐ผ ๐ฎ% ๐ณ๐ผ๐ฟ ๐๐ต๐ฒ ๐ณ๐๐น๐น ๐๐ฒ๐ฎ๐ฟ.
Looking at the segments with more detail:
๐๐ผ๐บ๐ฏ๐๐๐๐ถ๐ฏ๐น๐ฒ๐, the biggest revenue driver and the dying part of the business was ๐ฑ๐ผ๐๐ป ๐ฏ.๐ฑ% ๐๐ผ ยฃ๐ต.๐ฑ ๐๐ป.
๐ฉ๐ฎ๐ฝ๐ผ๐๐ฟ ๐๐ฎ๐ ๐ฑ๐ผ๐๐ป ๐ญ๐ฑ.๐ฏ% ๐๐ผ ยฃ๐ณ๐ฏ๐ณ ๐ ๐ป.
๐๐ฒ๐ฎ๐๐ฒ๐ฑ ๐๐ผ๐ฏ๐ฎ๐ฐ๐ฐ๐ผ ๐๐ฎ๐ ๐๐ฝ ๐ฌ.๐ด% ๐๐ผ ยฃ๐ฐ๐ฐ๐ฐ ๐ ๐ป.
And ๐บ๐ผ๐ฑ๐ฒ๐ฟ๐ป ๐ผ๐ฟ๐ฎ๐น, the only part of the business that's looking good right now ๐ด๐ฟ๐ฒ๐ ๐ฏ๐ด.๐ญ% ๐๐ผ ยฃ๐ฐ๐ณ๐ฌ ๐ ๐ป, ๐๐ถ๐๐ต ๐ฎ ๐ด๐ฟ๐ผ๐๐๐ต ๐ผ๐ณ ๐ฎ๐ฌ๐ฒ% ๐ถ๐ป ๐๐ต๐ฒ ๐จ๐ฆ.
Management seems cautiously optimistic going forward as ๐๐ต๐ฒ๐ฟ๐ฒ ๐ถ๐ ๐ณ๐ถ๐ป๐ฎ๐น๐น๐ ๐๐ผ๐บ๐ฒ ๐ฒ๐๐ถ๐ฑ๐ฒ๐ป๐ฐ๐ฒ ๐๐ต๐ฎ๐ ๐๐ต๐ฒ ๐จ๐ฆ ๐ถ๐ ๐๐ฎ๐ธ๐ถ๐ป๐ด ๐ฎ๐ฐ๐๐ถ๐ผ๐ป ๐ฎ๐ด๐ฎ๐ถ๐ป๐๐ ๐ถ๐น๐น๐ถ๐ฐ๐ถ๐ ๐๐ฎ๐ฝ๐ฒ๐ (that dominate the vapour market in the US) and the company is preparing to roll out the new premium version of their vapour product (VUSE ultra) in the latter half of the year, so ๐๐ฒ ๐บ๐ถ๐ด๐ต๐ ๐๐๐ฎ๐ฟ๐ ๐๐ผ ๐๐ฒ๐ฒ ๐๐ผ๐บ๐ฒ ๐๐ฎ๐ฝ๐ผ๐๐ฟ ๐ด๐ฟ๐ผ๐๐๐ต ๐ฎ๐ด๐ฎ๐ถ๐ป.
When it comes to the stock, ๐๐ฒ ๐ฎ๐ฟ๐ฒ ๐๐ถ๐๐๐ถ๐ป๐ด ๐ฎ๐ ๐ฎ ๐ฝ๐ฟ๐ผ๐ณ๐ถ๐ ๐ผ๐ณ ๐ผ๐๐ฒ๐ฟ ๐ณ๐ฌ% ๐๐ถ๐๐ต๐ผ๐๐ ๐๐ฎ๐ธ๐ถ๐ป๐ด ๐ถ๐ป๐๐ผ ๐ฎ๐ฐ๐ฐ๐ผ๐๐ป๐ ๐๐ต๐ฒ ๐ฑ๐ถ๐๐ถ๐ฑ๐ฒ๐ป๐ฑ๐ we got along the way. At this point ๐๐ต๐ฒ ๐๐๐ผ๐ฐ๐ธ ๐ฑ๐ผ๐ฒ๐ ๐ป๐ผ๐ ๐น๐ผ๐ผ๐ธ ๐ฎ๐ ๐ฎ๐๐๐ฟ๐ฎ๐ฐ๐๐ถ๐๐ฒ as it once did, with limited growth potential and trading at what I think is a fair valuation and thus ๐ ๐ต๐ฎ๐๐ฒ ๐๐๐ฎ๐ฟ๐๐ฒ๐ฑ ๐๐ผ ๐ฟ๐ฒ๐ฑ๐๐ฐ๐ฒ ๐ผ๐๐ฟ ๐ฝ๐ผ๐๐ถ๐๐ถ๐ผ๐ป, while the stock might continue to climb in the coming weeks, months or even years. the risk/return profile does no longer look as attractive as it once did.
Last week I sold 1/4 of our shares in $BATS.L and moved the proceeds into $GOOGL (Alphabet Inc Class A), and while I think $GOOGL is quite attractive at the current price I don't foresee us increasing our position any further for now, as it's quite a large position at the moment.... Show More
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Sat Nov 08 2025 09:28:17 GMT+0000 (Coordinated Universal Time)
