Full Year Results 

Reynolds acquisition flatters BATS results

Reynolds acquisition flatters BATS results

The £41.8bn purchase of Reynolds America by British American Tobacco (BATS) was the largest ever acquisition of a tobacco company, and one of the biggest M&A deals in history. The deal completed last July, so it’s no wonder that full-year results look abnormally inflated. Reported cigarette sales volumes, which have been in steady decline in recent years, were up 3.2 per cent to 686bn, but strip out Reynolds’ contribution and volumes fell 2.6 per cent. It was a similar story with sales. Group revenue increased by 38 per cent, or a mere 2.9 per cent after Reynolds and foreign exchange benefits are removed.

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