Business Context and Reporting Period
This Form 6-K filing by British American Tobacco p.l.c. (BAT), dated July 26, 2023, provides revised financial statements and information for the fiscal year ended December 31, 2022. The filing supersedes the equivalent information in the Company's Annual Report on Form 20-F filed on March 2, 2023. The revisions reflect changes to the Company's reportable operating segment data to align with a new regional structure that became operational on April 1, 2023. The new segments are United States; Americas and Europe; and Asia-Pacific, Middle East and Africa, replacing the previous four geographic segments.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. This document serves as a notice of revision to the previously filed Form 20-F rather than a standalone financial report containing updated figures. Investors must refer to the updated "Financial Statements" section (Exhibit 99.2) and the "Strategic Report" (Exhibit 99.1) attached to this filing for the actual financial data.
Material Changes Versus Prior Period
The primary material change is the restatement of historical data to present performance under the new geographic segments for the full period of 2022 to ensure comparability. The filing updates the following sections of the Form 20-F:
- Strategic Report: Overview, Chief Executive's review, Strategic Management, and reviews of Tobacco Heating Products (THPs), Modern Oral Products, and Combustible Products.
- Financial Review: Profit from operations analysis, net finance costs, results from associates, and Regional Review tables.
- Financial Statements: Full restatement of the financial statements.
- Other Information: Non-GAAP measures, revenue by product category or geographic segment, employee data, and property, plant, and equipment.
The filing explicitly states that it does not reflect any events occurring after the original Form 20-F filing date of March 2, 2023.
Guidance, Outlook, and Risks
The filing contains forward-looking statements regarding the Group's results of operations, financial condition, liquidity, and growth strategies. These statements are subject to significant risks and uncertainties, including:
- Competition from illicit trade.
- Adverse domestic or international legislation and regulation.
- Inability to develop and commercialize the "New Categories" strategy.
- Adverse litigation outcomes and their financial impact.
- Significant increases in tobacco, nicotine, and New Categories related taxes.
- Foreign exchange rate exposure (translational and transactional).
- Changes in economic or political conditions.
- Ability to maintain credit ratings and fund the business under the current capital structure.
- Climate change impacts and the move towards a Circular Economy.
The Company disclaims any obligation to update these forward-looking statements and cautions that past performance is not a guide to future performance.
Important Facts for Investor Verification
- Verify the specific financial figures in the attached Exhibits 99.1 and 99.2, as this Form 6-K text does not list numerical results.
- Confirm the impact of the new geographic segment structure on historical comparability for the 2022 fiscal year.
- Review the updated Non-GAAP measures and revenue breakdowns by product category and region.
- Assess the risks associated with the "New Categories" strategy and regulatory changes as outlined in the forward-looking statements.
- Note that the financial information for U.S. operations (Reynolds American) is initially prepared under U.S. GAAP and converted to IFRS for consolidation.