Cover
Cover | 6 Months Ended |
Jun. 30, 2023 | |
Document Information [Line Items] | |
Document Type | 6-K |
Entity Registrant Name | BRITISH AMERICAN TOBACCO P.L.C. |
Document Period End Date | Jun. 30, 2023 |
Amendment Flag | false |
Entity Central Index Key | 0001303523 |
Current Fiscal Year End Date | --12-31 |
Group Income Statement
Group Income Statement - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Profit or loss [abstract] | ||||
Revenue | [1] | £ 13,441 | £ 12,869 | £ 27,655 |
Raw materials and consumables used | (2,251) | (2,250) | (4,781) | |
Changes in inventories of finished goods and work in progress | 7 | 97 | 227 | |
Employee benefit costs | (1,389) | (1,329) | (2,972) | |
Depreciation, amortisation and impairment costs | (480) | (659) | (1,305) | |
Other operating income | 239 | 42 | 722 | |
Loss on reclassification from amortised cost to fair value | (3) | (1) | (5) | |
Other operating expenses | (3,629) | (5,091) | (9,018) | |
Profit from operations | 5,935 | 3,678 | 10,523 | |
Net finance costs | (921) | (817) | (1,641) | |
Share of post-tax results of associates and joint ventures | 289 | 200 | 442 | |
Profit before taxation | 5,303 | 3,061 | 9,324 | |
Taxation on ordinary activities | (1,268) | (1,123) | (2,478) | |
Profit for the period | 4,035 | 1,938 | 6,846 | |
Attributable to: | ||||
Owners of the parent | 3,959 | 1,859 | 6,666 | |
Non-controlling interests | 76 | 79 | 180 | |
Profit for the period | £ 4,035 | £ 1,938 | £ 6,846 | |
Earnings per share | ||||
Basic (in GBP per share) | £ 1.766 | £ 0.812 | £ 2.933 | |
Diluted (in GBP per share) | £ 1.760 | £ 0.808 | £ 2.919 | |
[1]Revenue is net of duty, excise and other taxes of £18,721 million and £18,190 million for the six months ended 30 June 2023 and 30 June 2022, respectively, and £38,527 million for the year ended 31 December 2022 |
Group Statement of Comprehensiv
Group Statement of Comprehensive Income - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Statement of comprehensive income [abstract] | |||
Profit for the period | £ 4,035 | £ 1,938 | £ 6,846 |
Other comprehensive income | |||
Items that may be reclassified subsequently to profit or loss: | (4,642) | 8,385 | 8,506 |
Foreign currency translation and hedges of net investments in foreign operations | |||
– differences on exchange from translation of foreign operations | (4,841) | 8,665 | 8,923 |
– reclassified and reported in profit for the period | 0 | 14 | 5 |
– net investment hedges - net fair value gains/(losses) on derivatives | 248 | (500) | (578) |
– net investment hedges - differences on exchange on borrowings | 13 | (9) | (21) |
Cash flow hedges | |||
– net fair value gains | 59 | 103 | 81 |
– reclassified and reported in profit for the period | (17) | 50 | 101 |
– tax on net fair value gains in respect of cash flow hedges | (15) | (26) | (17) |
Investments held at fair value | |||
– net fair value gains | 3 | 3 | 6 |
Associates – share of OCI, net of tax | (92) | 85 | 6 |
Items that will not be reclassified subsequently to profit or loss: | 55 | 278 | 201 |
Retirement benefit schemes | |||
– net actuarial gains | 45 | 411 | 316 |
– surplus recognition | 3 | (23) | (39) |
– tax on actuarial gains in respect of subsidiaries | 12 | (120) | (95) |
Associates – share of OCI, net of tax | (5) | 10 | 19 |
Total other comprehensive income for the period, net of tax | (4,587) | 8,663 | 8,707 |
Total comprehensive income for the period, net of tax | (552) | 10,601 | 15,553 |
Attributable to: | |||
Owners of the parent | (599) | 10,507 | 15,370 |
Non-controlling interests | 47 | 94 | 183 |
Total comprehensive income for the period, net of tax | £ (552) | £ 10,601 | £ 15,553 |
Group Statement of Changes in E
Group Statement of Changes in Equity - GBP (£) £ in Millions | Total | Share capital | Share premium, capital redemption and merger reserves | Other reserves | Retained earnings | In respect of assets held-for-sale | Total attributable to owners of parent | Perpetual hybrid bonds | Non-controlling interests |
Beginning balance at Dec. 31, 2021 | £ 67,401 | £ 614 | £ 26,622 | £ (6,032) | £ 44,212 | £ 0 | £ 65,416 | £ 1,685 | £ 300 |
Total comprehensive income for the period, net of tax | 10,601 | 8,379 | 2,128 | 10,507 | 94 | ||||
Profit for the period | 1,938 | 1,859 | 1,859 | 79 | |||||
Other comprehensive income for the period (page #) | 8,663 | 8,379 | 269 | 8,648 | 15 | ||||
Other changes in equity | |||||||||
Cash flow hedges reclassified and reported in total assets | 76 | 76 | 76 | ||||||
Employee share options | |||||||||
value of employee services | 34 | 34 | 34 | ||||||
proceeds from new shares issued | 4 | 4 | 4 | ||||||
treasury shares used for share option schemes | 0 | 1 | (1) | 0 | |||||
Dividends and other appropriations | |||||||||
ordinary shares | (2,476) | (2,476) | (2,476) | ||||||
to non-controlling interests | (80) | 0 | (80) | ||||||
Purchase of own shares | |||||||||
held in employee share ownership trusts | (80) | (80) | (80) | ||||||
share buy-back programme | 1,256 | 1,256 | 1,256 | ||||||
Perpetual hybrid bonds | |||||||||
Non-controlling interests - acquisitions | (1) | (1) | (1) | ||||||
Other movements non-controlling interests | 0 | 0 | |||||||
Reclassification of equity relating to assets held-for-sale | 0 | 58 | (58) | 0 | |||||
Other movements | (2) | (2) | (2) | ||||||
Ending balance at Jun. 30, 2022 | 74,069 | 614 | 26,627 | 2,329 | 42,558 | (58) | 72,070 | 1,685 | 314 |
Beginning balance at Dec. 31, 2021 | 67,401 | 614 | 26,622 | (6,032) | 44,212 | 0 | 65,416 | 1,685 | 300 |
Total comprehensive income for the period, net of tax | 15,553 | 8,521 | 6,849 | 15,370 | 183 | ||||
Profit for the period | 6,846 | 6,666 | 6,666 | 180 | |||||
Other comprehensive income for the period (page #) | 8,707 | 8,521 | 183 | 8,704 | 3 | ||||
Other changes in equity | |||||||||
Cash flow hedges reclassified and reported in total assets | 129 | 129 | 129 | ||||||
Employee share options | |||||||||
value of employee services | 81 | 81 | 81 | ||||||
proceeds from new shares issued | 5 | 5 | 5 | ||||||
treasury shares used for share option schemes | 0 | 1 | (1) | 0 | |||||
Dividends and other appropriations | |||||||||
ordinary shares | (4,915) | (4,915) | (4,915) | ||||||
to non-controlling interests | (141) | 0 | (141) | ||||||
Purchase of own shares | |||||||||
held in employee share ownership trusts | (80) | (80) | (80) | ||||||
share buy-back programme | 2,012 | 2,012 | 2,012 | ||||||
Perpetual hybrid bonds | |||||||||
coupons paid | (59) | (59) | (59) | ||||||
tax on coupons paid | 11 | 11 | 11 | ||||||
Non-controlling interests - acquisitions | (1) | (1) | (1) | ||||||
Other movements non-controlling interests | 0 | ||||||||
Reclassification of equity relating to assets held-for-sale | 0 | 295 | (295) | 0 | |||||
Other movements | (4) | (4) | (4) | ||||||
Ending balance at Dec. 31, 2022 | 75,710 | 614 | 26,628 | 2,655 | 44,081 | (295) | 73,683 | 1,685 | 342 |
Total comprehensive income for the period, net of tax | (552) | (4,619) | 4,020 | (599) | 47 | ||||
Profit for the period | 4,035 | 3,959 | 3,959 | 76 | |||||
Other comprehensive income for the period (page #) | (4,587) | (4,619) | 61 | (4,558) | (29) | ||||
Other changes in equity | |||||||||
Cash flow hedges reclassified and reported in total assets | 38 | 38 | 38 | ||||||
Employee share options | |||||||||
value of employee services | 33 | 33 | 33 | ||||||
proceeds from new shares issued | 1 | 1 | 1 | ||||||
treasury shares used for share option schemes | 0 | 0 | |||||||
Dividends and other appropriations | |||||||||
ordinary shares | (2,493) | (2,493) | (2,493) | ||||||
to non-controlling interests | (59) | 0 | (59) | ||||||
Purchase of own shares | |||||||||
held in employee share ownership trusts | (110) | (110) | (110) | ||||||
share buy-back programme | 0 | 0 | |||||||
Perpetual hybrid bonds | |||||||||
Non-controlling interests - acquisitions | 0 | 0 | |||||||
Reclassification of equity relating to assets held-for-sale | 0 | 205 | (205) | 0 | |||||
Other movements | 60 | 60 | 60 | ||||||
Ending balance at Jun. 30, 2023 | £ 72,628 | £ 614 | £ 26,629 | £ (1,721) | £ 45,591 | £ (500) | £ 70,613 | £ 1,685 | £ 330 |
Group Balance Sheet
Group Balance Sheet - GBP (£) £ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Assets | |||
Intangible assets | £ 122,126 | £ 129,075 | £ 128,026 |
Property, plant and equipment | 4,521 | 4,867 | 4,728 |
Investments in associates and joint ventures | 2,061 | 2,020 | 2,055 |
Retirement benefit assets | 1,027 | 1,000 | 1,219 |
Deferred tax assets | 720 | 682 | 619 |
Trade and other receivables | 284 | 241 | 224 |
Investments held at fair value | 111 | 121 | 55 |
Derivative financial instruments | 130 | 131 | 236 |
Total non-current assets | 130,980 | 138,137 | 137,162 |
Inventories | 5,634 | 5,671 | 5,952 |
Income tax receivable | 160 | 149 | 145 |
Trade and other receivables | 4,219 | 4,367 | 3,649 |
Investments held at fair value | 451 | 579 | 571 |
Derivative financial instruments | 413 | 430 | 270 |
Cash and cash equivalents | 3,681 | 3,446 | 3,568 |
Total current assets other than non-current assets classified as held for sale | 14,558 | 14,642 | 14,155 |
Assets classified as held-for-sale | 534 | 767 | 554 |
Total current assets | 15,092 | 15,409 | 14,709 |
Total assets | 146,072 | 153,546 | 151,871 |
Equity – capital and reserves | |||
Share capital | 614 | 614 | 614 |
Share premium, capital redemption and merger reserves | 26,629 | 26,628 | 26,627 |
Other reserves | (1,721) | 2,655 | 2,329 |
Retained earnings | 45,591 | 44,081 | 42,558 |
In respect of assets held-for-sale | (500) | (295) | (58) |
Owners of the parent | 70,613 | 73,683 | 72,070 |
Perpetual hybrid bonds | 1,685 | 1,685 | 1,685 |
Non-controlling interests | 330 | 342 | 314 |
Total equity | 72,628 | 75,710 | 74,069 |
Liabilities | |||
Non-current borrowings | 37,140 | 38,726 | 39,724 |
Retirement benefit liabilities | 881 | 949 | 1,108 |
Deferred tax liabilities | 17,389 | 18,428 | 18,361 |
Other provisions for liabilities | 469 | 434 | 418 |
Trade and other payables | 944 | 944 | 998 |
Derivative financial instruments | 430 | 502 | 467 |
Total non-current liabilities | 57,253 | 59,983 | 61,076 |
Current borrowings | 5,029 | 4,413 | 5,151 |
Income tax payable | 905 | 1,049 | 888 |
Other provisions for liabilities | 483 | 1,087 | 863 |
Trade and other payables | 9,217 | 10,449 | 8,823 |
Derivative financial instruments | 251 | 427 | 462 |
Current liabilities other than liabilities included in disposal groups classified as held for sale | 15,885 | 17,425 | 16,187 |
Liabilities associated with assets classified as held-for-sale | 306 | 428 | 539 |
Total current liabilities | 16,191 | 17,853 | 16,726 |
Total equity and liabilities | £ 146,072 | £ 153,546 | £ 151,871 |
Group Cash Flow Statement
Group Cash Flow Statement - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities | |||
Cash generated from operating activities | £ 4,522 | £ 4,330 | £ 12,537 |
Dividends received from associates | 202 | 171 | 394 |
Tax paid | (1,349) | (1,280) | (2,537) |
Net cash generated from operating activities | 3,375 | 3,221 | 10,394 |
Cash flows from investing activities | |||
Interest received | 78 | 28 | 85 |
Purchases of property, plant and equipment | (110) | (99) | (523) |
Proceeds on disposal of property, plant and equipment | 22 | 13 | 31 |
Purchases of intangibles | (21) | (52) | (133) |
Proceeds on disposal of intangibles | 0 | 0 | 3 |
Purchases of investments | (433) | (174) | (257) |
Proceeds on disposals of investments | 543 | 81 | 128 |
Investment in associates and acquisitions of other subsidiaries net of cash acquired | (38) | (5) | (39) |
Net cash generated from/(used in) investing activities | 41 | (208) | (705) |
Cash flows from financing activities | |||
Interest paid on borrowings and financing related activities | (855) | (746) | (1,578) |
Interest element of lease liabilities | (14) | (11) | (25) |
Capital element on lease liabilities | (80) | (71) | (161) |
Proceeds from increases in and new borrowings | 2,054 | 3,162 | 3,267 |
Reductions in and repayments of borrowings | (1,050) | (1,087) | (3,044) |
(Outflows)/inflows relating to derivative financial instruments | (429) | 253 | (117) |
Purchases of own shares - share buy-back programme | 0 | (1,256) | (2,012) |
Purchases of own shares held in employee share ownership trusts | (110) | (80) | (80) |
Coupon paid on perpetual hybrid bonds | 0 | 0 | (60) |
Dividends paid to owners of the parent | (2,479) | (2,476) | (4,915) |
Capital injection from and purchases of non-controlling interests | 0 | (1) | (1) |
Dividends paid to non-controlling interests | (59) | (80) | (158) |
Other | (1) | 4 | 6 |
Net cash used in financing activities | (3,023) | (2,389) | (8,878) |
Net cash flows generated from operating, investing and financing activities | 393 | 624 | 811 |
Transferred from/(to) held-for-sale | 4 | (240) | (368) |
Differences on exchange | (171) | 371 | 431 |
Increase in net cash and cash equivalents in the year | 226 | 755 | 874 |
Net cash and cash equivalents at 1 January | 3,337 | 2,463 | 2,463 |
Net cash and cash equivalents at period end | 3,563 | 3,218 | 3,337 |
Cash and cash equivalents | 3,681 | 3,568 | 3,446 |
Overdrafts and accrued interest | (118) | (350) | (109) |
Net cash and cash equivalents at period end | £ 3,563 | £ 3,218 | £ 3,337 |
Group Cash Flow Statement (Pare
Group Cash Flow Statement (Parenthetical) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Statement of cash flows [abstract] | |||
Net cash outflows relating to adjusting items | £ (56) | £ 155 | £ 466 |
Group Income Statement - Parent
Group Income Statement - Parenthetical (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Profit or loss [abstract] | |||
Duty excise and other taxes levied on tobacco and tobacco related products | £ 18,721 | £ 18,190 | £ 38,527 |
Accounting policies and basis o
Accounting policies and basis of preparation | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Accounting Policies [Abstract] | |
Accounting policies and basis of preparation | Accounting policies and basis of preparation The condensed consolidated financial information comprises the unaudited interim financial information for the six months to 30 June 2023. The condensed consolidated financial information has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and as issued by the International Accounting Standards Board (IASB), and the Disclosure Guidance and Transparency Rules issued by the Financial Conduct Authority. The interim condensed consolidated financial information is unaudited. This condensed consolidated financial information does not constitute statutory accounts within the meaning of Section 434 of the Companies Act 2006 and should be read in conjunction with the Group’s Annual Report and Accounts and Form 20-F for the year ended 31 December 2022, including the audited financial statements for the year ended 31 December 2022, which were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB) and UK-adopted international accounting standards. UK-adopted international accounting standards differ in certain respects from IFRS as issued by the IASB. The differences have no impact on the Group’s consolidated financial statements for the periods presented. The Group’s Annual Report and Accounts and Form 20-F for the year ended 31 December 2022 represent the statutory accounts for that year and have been filed with the Registrar of Companies. These condensed consolidated financial statements have been prepared under the historical cost convention, except in respect of certain financial instruments. They are prepared on a basis consistent with the IFRS accounting policies as set out in the Group’s Annual Report and Form 20-F for the year ended 31 December 2022. The preparation of these condensed consolidated financial statements requires management to make estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and the disclosure of contingent liabilities at the date of these condensed consolidated financial statements. Such estimates and assumptions are based on historical experience and various other factors that are believed to be reasonable in the circumstances and constitute management’s best judgement at the date of the condensed consolidated financial statements. Other than in respect of the Group’s Russian and Belarusian businesses (which have been classified as held-for-sale) and certain assumptions related to the assessment of the carrying value of goodwill and intangible assets, the key estimates and assumptions were the same as those that applied to the consolidated financial information for the year ended 31 December 2022, apart from updating the assumptions used to determine the carrying value of liabilities for retirement benefit schemes. As described on page 31 31 As discussed on page 18 |
Adjusting items
Adjusting items | 6 Months Ended |
Jun. 30, 2023 | |
Adjusting Items [Abstract] | |
Adjusting items | Adjusting Items Adjusting items are significant items of income or expense in profit from operations, net finance costs, taxation and the Group’s share of the post-tax results of associates and joint ventures which individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance because of their size, nature or incidence. In identifying and quantifying adjusting items, the Group consistently applies a policy that defines criteria that are required to be met for an item to be classified as adjusting. These items are separately disclosed in the segmental analyses or in the notes to the accounts as appropriate. The Group believes that these items are useful to users of the Group financial statements in helping them to understand the underlying business performance and are used to derive the Group’s principal non-GAAP measures of organic revenue, adjusted profit from operations, adjusted organic profit from operations, adjusted diluted earnings per share, adjusted net finance costs, adjusted taxation, all of which are before the impact of adjusting items and which are reconciled from revenue, profit from operations, diluted earnings per share, net finance costs and taxation. |
Analysis of revenue and profit
Analysis of revenue and profit from operations by segment | 6 Months Ended |
Jun. 30, 2023 | |
Reportable Segments [Abstract] | |
Analysis of revenue and profit from operations by segment | Analysis of revenue and profit from operations by segment Six months ended 30 June 2023 2022 Reported Exchange Reported at CC 2 Reported Revenue £m £m £m £m U.S. 5,910 (294) 5,616 5,934 AME 4,730 (101) 4,629 4,243 APMEA 2,801 155 2,956 2,692 Total Region 13,441 (240) 13,201 12,869 Six months ended 30 June 2023 2022 Reported Adj Items 1 Adjusted Exchange Adjusted at CC 2 Reported Adj Items 1 Adjusted Profit from Operations £m £m £m £m £m £m £m £m U.S. 3,168 137 3,305 (175) 3,130 2,801 335 3,136 AME 1,767 (119) 1,648 (49) 1,599 508 975 1,483 APMEA 1,000 67 1,067 54 1,121 369 657 1,026 Total Region 5,935 85 6,020 (170) 5,850 3,678 1,967 5,645 Notes to the analysis of revenue and profit from operations above: 1. Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. 2. CC: constant currency – measures are calculated based on a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments . As part of plans to reduce complexity and drive efficiency in management structures and achieve a better balance in the scale of our regions, it was decided to reduce the management structure from four regions to three regions, with the new organisational structures in place from April 2023. The new regional structure is: – the U.S.; – Americas and Europe (AME), comprising largely the old Europe region with the inclusion of markets in Latin America and Canada; and – Asia-Pacific, Middle East and Africa (APMEA) comprising the old APME region with the inclusion of markets in Sub-Saharan Africa and parts of the former Europe region. |
Adjusting items included in pro
Adjusting items included in profit from operations | 6 Months Ended |
Jun. 30, 2022 | |
Profit From Operations [Abstract] | |
Adjusting items included in profit from operations | Adjusting items included in profit from operations Adjusting items are significant items in the profit from operations that individually or, if of a similar type, in aggregate, are relevant to an understanding of the Group’s underlying financial performance. In summary, in the six months ended 30 June 2023, the Group incurred £85 million (30 June 2022: £1,967 million; 31 December 2022: £1,885 million ) of adjusting items within profit from operations: Six months ended 30 June Year ended 2023 2022 2022 £m £m £m (a) Restructuring and integration costs (2) 333 771 (b) Amortisation and impairment of trademarks and similar intangibles 108 161 285 (c) Charges in connection with planned disposal of subsidiaries 17 957 612 (c) (Credit)/charges in connection with disposal of subsidiaries (1) 1 (6) (d) Credit in respect of partial buy-out of the pension fund in the U.S. — (15) (16) (d) Credit in respect of calculation of excise on social contributions in Brazil (147) — — (d) Credit in respect of calculation of VAT on social contributions in Brazil (13) — (460) (d) Charges in respect of DOJ and OFAC investigations 66 450 450 (d) Charges in respect of Nigeria Federal Competition and Consumer Protection Commission (FCCPC) case — — 79 (d) Other adjusting items (including Engle ) 57 80 170 Total adjusting items included in profit from operations 85 1,967 1,885 (a) Restructuring and integration costs Restructuring costs reflect the costs associated with the implementation of revisions to the Group’s operating model, mainly in relation to Quantum. This programme delivered £1.9 billion of annualised savings over a three-year period (to 2022) and the charges include the cost of packages in respect of permanent headcount reductions and permanent employee benefit reductions in the Group. No further restructuring charges were recognised as adjusting in 2023, following the completion of the Quantum programme. The costs of the Group’s initiatives are included in profit from operations under the following headings: Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Employee benefit costs (2) 49 315 Depreciation, amortisation and impairment costs — 131 220 Other operating expenses — 153 237 Other operating income — — (1) Total (2) 333 771 Notes to the Unaudited Interim Financial Statements Continued Adjusting items included in profit from operations (continued) (b) Amortisation and impairment of trademarks and similar intangibles Acquisitions in previous years have resulted in the capitalisation of trademarks and similar intangibles including those which are amortised over their expected useful lives, which do not exceed 20 years. The amortisation and impairment charge of £108 million (30 June 2022: £161 million, 31 December 2022: £285 million) is included in depreciation, amortisation and impairment costs in the income statement. (c) Assets classified as held-for-sale On 11 March 2022, the Group announced its intention to transfer BAT Russia in compliance with international and local laws; as described on page 15 At the date of writing, no agreement to transfer the shares in these subsidiaries has been entered into. Further, any transaction that is agreed will be subject to regulatory approvals. In accordance with IFRS, the assets of these subsidiaries comprising £189 million of property, plant and equipment and other non-current assets, £345 million of trade and other receivables, £364 million of cash and cash equivalents and £180 million of other current assets principally relating to inventories, have been classified as held-for-sale at 30 June 2023 and presented as such on the balance sheet at an estimated recoverable value (fair value less costs to sell). In addition, £8 million of borrowings and £299 million of trade creditors and other current liabilities have been classified as held-for-sale at 30 June 2023. Impairment charges of £554 million and associated costs of £58 million were recognised in the Income Statement as adjusting items in 2022. In addition, another £17 million of associated costs were recognised in the Income Statement as adjusting items in the first six months of 2023. No amendments to the recorded impairment charge were deemed necessary as at 30 June 2023. The assessment of recoverable value has taken into account a range of internal assumptions, including those regarding the impact, extent and duration of sanctions, likely transaction terms, the likelihood of any consideration being significantly deferred, potentially impacting the ability to remit funds, and ongoing macro-economic developments, such as the impact of inflation and interest rates. All assumptions are based on current expectations and are subject to a very high degree of volatility and uncertainty and therefore may change up until the final value can be determined, based on an actual transaction. On completion of the transaction, certain other items, including foreign exchange previously recognised in the Statement of Other Comprehensive Income (which was £500 million at 30 June 2023), will be reclassified to the Income Statement in the period in which completion occurs. The financial impact of these items will also be treated as non-cash, adjusting items. The following is a reconciliation between the total assets available for sale and their estimated recoverable amount (fair value less costs to sell): At 30 June 2023 £m Total assets held-for-sale* 1,088 Impairment of non-current assets held-for-sale - Russia and Belarus (189) 899 Excess impairment beyond non-current assets held-for-sale - Russia and Belarus (365) Assets held-for-sale* 534 * Includes £9 million of assets held-for-sale in territories other than Russia and Belarus. Also included in 2023 is a credit of £1 million (30 June 2022: charge of £1 million) related to the sale of the Group’s Iranian business, which was completed in 2021. (d) Other In 2023, the Group benefited from a net credit of £37 million (30 June 2022: net charge of £515 million) of other adjusting items. These included: – A charge of £66 million (30 June 2022: £450 million) recognised in respect of the DOJ and OFAC investigations into alleged historical breaches of sanctions (see page 14 – A credit of £147 million (30 June 2022: £nil million) in respect of calculation of excise on social contributions in Brazil; – A credit of £13 million (30 June 2022: £nil million) related to the calculation of VAT on social contributions in Brazil; – A credit of £15 million in the first half of 2022 in respect of a settlement gain related to the partial buy-out of the U.S. pension fund; and – Other costs of £57 million (30 June 2022: £80 million). In 2023, this mainly related to litigation costs including Engle progeny cases Notes to the Unaudited Interim Financial Statements Continued Adjusting items included in profit from operations (continued) (e) The Group reviews and monitors the performance of its non-financial assets (including goodwill) in line with the requirements of IAS 36 Impairment of Assets . In preparing the Half-Year Report for the six months ended 30 June 2023, the Group has assessed if any impairment indicators exist requiring a further detailed impairment assessment to be undertaken. On 28 April 2022, the FDA announced a proposed product standard to prohibit menthol as a characterising flavour in cigarettes, consistent with their previously stated timeline. Management noted that the proposal of a product standard does not itself constitute a ban on menthol in cigarettes given the proposed standard is still required to go through the established U.S. comprehensive rule-making process, the timetable and outcome for which was, and remains, uncertain. Management incorporated the anticipated impacts of a proposed product standard within the 2022 year-end impairment assessment and noted that there have been no developments since Further to this, on 21 June 2022, the FDA announced plans to develop a proposed product standard that would establish a maximum nicotine level in cigarettes and certain other combustible tobacco products to reduce addictiveness. Management noted that the FDA announcement does not itself constitute restrictions on nicotine levels in cigarettes, and any proposed regulation would need to be introduced through the established U.S. comprehensive rule-making process, the timetable and outcome for which was, and remains, uncertain. As of 30 June 2023, no proposed product standard had been announced. However, Management will continue to monitor its progress and its impact (if any) on the Cash Generating Unit's ("CGU") Value-in-Use. During 2023, macro-economic pressures intensified within the U.S. market resulting in higher than anticipated combustible volume declines in the first half of the year, especially in the premium segment. However, these impacts are expected to dissipate within the short-term, as the macro-economic pressures normalise, and therefore do not impact the longer term outlook for the Reynolds American Inc. ("Reynolds") CGU. Additionally, New Categories have continued delivering a strong performance, especially in Vapour with the potential for enforcement action on disposable synthetic nicotine vape products by the FDA, expected to bring further growth to the Group's U.S. Vapour business. While the Reynolds CGU is facing headwinds in 2023, Management has not identified an impairment trigger in relation to either the Reynolds CGU or its indefinite-lived brand intangibles. However, in relation to Camel Snus, while its performance in the first half of 2023 indicated no potential impairment triggers, Management continues to monitor its performance, given it remains highly sensitive to movements in key assumptions. In December 2022, the sale of most tobacco products with characterising flavours (including menthol) other than tobacco were banned in the state of California. The impact of such ban does not present an indicator of a potential impairment for Reynolds goodwill or any of the indefinite-lived intangibles. As part of the standard year-end impairment process, a detailed impairment review will be undertaken for all CGUs in line with IAS 36 Impairment of Assets . This will include the entire Reynolds portfolio (including Newport and Camel) to ensure the book values remain supportable. |
Adjusting items included in net
Adjusting items included in net finance costs | 6 Months Ended |
Jun. 30, 2023 | |
Analysis of income and expense [abstract] | |
Adjusting items included in net finance costs | Adjusting items included in net finance costs In the six months ended 30 June 2023, the Group incurred adjusting items within net finance costs of £23 million (30 June 2022: This included interest of £28 million (30 June 2022: £13 million) in relation to the FII GLO, as described on page 39 In the six months to 30 June 2022, the Group recognised £28 million of foreign exchange arising from the revaluation of foreign currency balances held in Russia and Belarus that due to the proposed transfer of the Group’s Russian and Belarusian businesses do not qualify for hedge accounting. There was no equivalent charge in the first six months of 2023. All of the adjustments noted above have been included in the adjusted earnings per share calculation on page 36 |
Adjusting items included in res
Adjusting items included in results of associates and joint ventures | 6 Months Ended |
Jun. 30, 2023 | |
Adjusting Items Included In Results Of Associates And Joint Ventures [Abstract] | |
Adjusting items included in results of associates and joint ventures | Adjusting items included in results of associates and joint ventures Adjusting items included in results of associates and joint ventures was a charge of £15 million in the first six months of 2023 (30 June 2022: £62 million), mainly related to: – A gain of £16 million (30 June 2022: £8 million gain) as the Group’s interest in ITC decreased from 29.19% in 2022 to 29.12% as a result of ITC issuing ordinary shares under the company’s Employees Share Option Scheme. The issue of these shares and change in the Group’s share of ITC resulted in a deemed partial disposal; and – An impairment charge with respect to the investment in Organigram. Management assessed the carrying value of the Group’s investment in Organigram Holdings Inc., due to the continued deterioration in the investment's market capitalisation which Management identified as an impairment trigger. As part of this exercise, Management took into consideration: – Organigram’s share price as at 30 June 2023; – internal value-in-use calculations; – external trading multiples; and – broker forecasts. As a result of this analysis, it was concluded that a further impairment charge of £35 million (or £33 million net of tax) was required against the carrying value of the investment in associate, with the recoverable amount as at 30 June 2023 being £33 million. In 2022, the Group recorded an impairment charge of £65 million (or £59 million net of tax) against the carrying value of Organigram Holdings Inc. The share of post-tax results of associates and joint ventures is after the adjusting items noted above, which are excluded from the calculation of adjusted earnings per share as set out on page 36 |
Adjusting items included in tax
Adjusting items included in taxation | 6 Months Ended |
Jun. 30, 2023 | |
Adjusting Items Included in Taxation [Abstract] | |
Adjusting items included in taxation | Adjusting items included in taxation The Group’s tax rate is affected by the adjusting items referred to below and by the inclusion of the share of associates and joint ventures post-tax profit in the Group’s pre-tax results. Adjusting items in 2023 included a charge of £10 million (30 June 2022: £6 million) relating to the revaluation of deferred tax liabilities arising on trademarks recognised in the Reynolds American acquisition in 2017 due to changes in U.S. state tax rates. The adjusting tax item also includes £8 million (30 June 2022: £105 million) in respect of the taxation on other adjusting items, which are described on pages 29 32 Refer to page 39 As the above items are not reflective of the ongoing business, they have been recognised as adjusting items within taxation. All of the adjustments noted above have been included in the adjusted earnings per share calculation on page 36 |
Cash flow
Cash flow | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Cash Flow [Abstract] | |
Cash flow | Cash Flow Net cash generated from operating activities Net cash generated from operating activities in the IFRS cash flows on page 27 Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Profit for the period 4,035 1,938 6,846 Taxation on ordinary activities 1,268 1,123 2,478 Share of post-tax results of associates and joint ventures (289) (200) (442) Net finance costs 921 817 1,641 Profit from operations 5,935 3,678 10,523 Adjustments for: – depreciation, amortisation and impairment costs 480 659 1,305 – increase in inventories (357) (437) (246) – (increase)/decrease in trade and other receivables (425) 41 (42) – decrease in Master Settlement Agreement payable (897) (859) (145) – increase/(decrease) in trade and other payables 347 (84) 3 – decrease in retirement benefit liabilities (55) (56) (110) – (decrease)/increase in other provisions for liabilities (535) 399 643 – other non-cash items 29 989 606 Cash generated from operating activities 4,522 4,330 12,537 Dividends received from associates 202 171 394 Tax paid (1,349) (1,280) (2,537) Net cash generated from operating activities 3,375 3,221 10,394 Net cash generated from operating activities increased by £154 million, primarily driven by the realisation of tax credits in Brazil (related to the previously disclosed VAT on social contributions) and higher dividends received from the Group's associate ITC. These were partly offset by lower receivables factoring across the Group, lower working capital in APMEA and higher payments of tax. Included within net cash generated from operating activities were litigation payments of £179 million (30 June 2022: £31 million) which included, in both 2023 and 2022, payments in respect of Engle and, in 2023, payments related to the settlement of the investigation by the FCCPC in Nigeria, as described on page 38 Expenditure on research and development was approximately £194 million for the six months to 30 June 2023 (30 June 2022: £150 million) with a focus on products that could potentially reduce the risk associated with smoking conventional cigarettes. Net cash from investing activities Net cash from investing activities was £41 million, an improvement of £249 million from the same period last year when it was an outflow of £208 million. The improvement was largely due to a net inflow of £110 million (30 June 2022: £93 million net outflow) from short-term investment products, including treasury bills. Purchases of property, plant and equipment were largely in line with 2022, at £110 million (30 June 2022: £99 million). Included within investing activities is gross capital expenditure. This includes the investment in the Group’s global operational infrastructure (including, but not limited to, the manufacturing network, trade marketing and IT systems). In 2023, the Group invested £130 million, a decrease of 5.9% on the prior year (30 June 2022: £138 million). The Group now expects gross capital expenditure in 2023 of approximately £550 million mainly related to the ongoing investment in the Group’s operational infrastructure, including the expansion of our New Categories portfolio. Net cash used in financing activities Net cash used in financing activities was an outflow of £3,023 million in 2023 (30 June 2022: £2,389 million outflow). The total outflow includes: – The payment of the dividend of £2,479 million (30 June 2022: £2,476 million); – Higher interest paid in the period of £855 million (30 June 2022: £746 million), driven by higher interest charges as new debt issued replaced cheaper debt on maturity; – The net issuance of borrowings in 2023 of £1,004 million compared to a net issuance of borrowings in the six months to 30 June 2022 of £2,075 million; – An outflow of £429 million related to derivatives (30 June 2022: inflow of £253 million); and – In the first six months of 2022, an outflow of £1,256 million in respect of the 2022 share buy-back programme. |
Liquidity
Liquidity | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of detailed information about financial instruments [abstract] | |
Liquidity | Liquidity The Treasury function is responsible for raising finance for the Group, managing the Group’s cash resources and the financial risks arising from underlying operations. All these activities are carried out under defined policies, procedures and limits, reviewed and approved by the Board, delegating oversight to the Finance Director and Treasury function. The Group has targeted an average centrally managed bond maturity of at least five years with no more than 20% of centrally managed debt maturing in a single rolling The Group continues to maintain investment-grade credit ratings, with ratings from Moody’s/S&P at Baa2 (stable outlook)/BBB+ (negative outlook), respectively. The strength of the ratings has underpinned debt issuance and the Group is confident of its ability to continue to successfully access the debt capital markets. A credit rating is not a recommendation to buy, sell or hold securities. A credit rating may be subject to withdrawal or revision at any time. Each rating should be evaluated separately of any other rating. In order to manage its interest rate risk, the Group maintains both floating rate and fixed rate debt. The Group sets targets (within overall guidelines) for the desired ratio of floating to fixed rate debt on a net basis (at least 50% fixed on a net basis in the short to medium term). At 30 June 2023, the relevant ratio of floating to fixed rate borrowings after the impact of derivatives was 14:86 (30 June 2022: 19:81; 31 December 2022: 12:88). On a net debt basis, after offsetting liquid assets, the relevant ratio of floating to fixed rate borrowings was 5:95 (30 June 2022: 10:90; 31 December 2022: 3:97). Excluding cash and other liquid assets in Canada, which are subject to certain restrictions under CCAA protection, the ratio of floating to fixed rate borrowings was 9:91 (30 June 2022: 13:87; 31 December 2022: 7:93). The Group is party to the ISDA fallback protocol and, in January 2022, it automatically replaced GBP LIBOR with an economically equivalent interest rate referencing SONIA for derivatives on their reset date. Available facilities It is Group policy that short-term sources of funds (including drawings under both the US$4 billion U.S. commercial paper programme and £3 billion euro commercial paper programme) are backed by undrawn committed lines of credit and cash. As at 30 June 2023, commercial paper of £269 million was outstanding (30 June 2022: £727 million drawn; 31 December 2022: £27 million). Cash flows relating to commercial paper issuances with maturity periods of three months or less are presented on a net basis in the Group’s cash flow statement. At 30 June 2023, the Group had access to a £5.5 billion revolving credit facility. This facility was undrawn at 30 June 2023. In March 2023, the Group refinanced the £2.7 billion 364-day tranche of the revolving credit facility at the reduced amount of £2.5 billion, maturing in March 2024 with two one year extension options, and a one year term out option. Additionally, £3.0 billion of the five-year tranche remains available until March 2025, with £2.85 billion extended to March 2026 and £2.5 billion extended to March 2027. During the first six months of 2023, the Group extended short-term bilateral facilities totalling £2.9 billion. As at 30 June 2023, £1.5 billion was drawn on a short-term basis with £1.4 billion undrawn and still available under such bilateral facilities. Cash flows relating to bilateral facilities that have maturity periods of three months or less are presented on a net basis in the Group’s cash flow statement. Issuance, drawdowns and repayments in the period – In January 2023, the Group repaid a €750 million bond at maturity; – In February 2023, the Group accessed the Euro market under its EMTN Programme, raising a total of €800 million; and – In May 2023, the Group repaid a US$48 million bond at maturity. The Group has debt maturities of around £4 billion annually in the next two years. Due to higher interest rates, net finance costs are expected to increase as debts are refinanced. |
Fair value measurements and val
Fair value measurements and valuation processes | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Fair Value Measurement [Abstract] | |
Fair value measurements and valuation processes | Fair value measurements and valuation processes The Group held certain financial instruments at fair value at 30 June 2023. The definitions and valuation techniques employed for these as at 30 June 2023 are consistent with those used at 31 December 2022 and disclosed in Note 26 on pages 261 to 265 of the Group’s Annual Report and Accounts and Form 20-F for the year ended 31 December 2022: – Level 1 financial instruments are traded in an active market and fair value is based on quoted prices at the period end. – Level 2 financial instruments are not traded in an active market, but the fair values are based on quoted market prices, broker/dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The Group’s level 2 financial instruments include OTC derivatives. – The fair values of level 3 financial instruments have been determined using a valuation technique where at least one input (which could have a significant effect on the instrument's valuation) is not based on observable market data. The Group’s level 3 financial instruments primarily consist of an equity investment in an unquoted entity, interest free loans and other treasury products which are valued using the discounted cash flows of estimated future cash flows. While the carrying values of assets and liabilities at fair value have changed since 31 December 2022, the Group does not consider the movements in value to be significant, and the categorisation of these assets and liabilities in accordance with the disclosure requirements of IFRS 7 Financial Instruments has not materially changed. The values of level 1 assets and level 3 assets are £361 million and £200 million, respectively, at 30 June 2023 (30 June 2022: £506 million and £120 million, respectively, and 31 December 2022: £514 million and £186 million, respectively). Level 2 assets and liabilities are shown below. As at 30 June As at 31 December 2023 2022 2022 £m £m £m Assets at fair value Derivatives relating to – interest rate swaps 6 12 43 – cross-currency swaps 234 227 254 – forward foreign currency contracts 305 267 264 Assets at fair value 545 506 561 Liabilities at fair value Derivatives relating to – interest rate swaps 398 303 450 – cross-currency swaps 75 114 121 – forward foreign currency contracts 208 512 358 Liabilities at fair value 681 929 929 Borrowings are carried at amortised cost. The fair value of borrowings is estimated to be £36,945 million (30 June 2022: £39,491 million; 31 December 2022: £37,170 million). The value of other assets and liabilities held at amortised cost are not materially different from their fair values. |
Related party disclosures
Related party disclosures | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of transactions between related parties [abstract] | |
Related party disclosures | Related party disclosures The Group’s related party transactions and relationships for 2022 were disclosed on pages 271 and 272 of the Annual Report and Accounts and Form 20-F for the year ended 31 December 2022. In the six months ended 30 June 2023, apart from the collaboration with Organigram and the Group's investment in a new joint venture entity partly owned by Organigram (refer to page 15 In the six months ended 30 June 2022, apart from the investment in and collaboration with Organigram, there were no material changes in related parties or related party transactions to be reported. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
Earnings per share | Earnings per share Basic earnings per share were up 117% to 176.6p (30 June 2022: 81.2p) driven by the improvement in operational performance and translational foreign exchange tailwinds (partly offset by higher net finance costs), whilst the prior period was impacted by higher one-off charges (mainly related to the proposed transfer of the Group's businesses in Russia and Belarus, the DOJ and OFAC investigations into suspicions of sanctions breaches and Quantum restructuring). Before adjusting items and including the dilutive effect of employee share schemes, adjusted diluted earnings per share increased 8.5% to 181.6p (30 June 2022: 167.4p). On a constant translational foreign exchange basis, adjusted diluted earnings per share were 5.3% higher at 176.3p. For a full reconciliation of diluted earnings per share to adjusted diluted earnings per share, at constant rates, see page 55 Earnings used in the basic, diluted and headline earnings per share calculation represent the profit attributable to the ordinary equity shareholders after deducting amounts representing the coupon on perpetual hybrid bonds on a pro-rata basis regardless of whether or not coupons have been declared and paid in the period. In 2023, this was £22 million (30 June 2022: £23 million). Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Earnings attributable to owners of the parent 3,959 1,859 6,666 Coupon on perpetual hybrid bonds (29) (29) (60) Tax on coupon on perpetual hybrid bonds 7 6 11 Earnings 3,937 1,836 6,617 On 11 February 2022, the Company announced its intention to start a share buy-back programme of up to £2 billion. The programme ended in December 2022. As at 30 June 2022, the Company had repurchased 37,657,945 ordinary shares. The total number of shares repurchased during 2022 as part of the share buy-back programme was 59,541,862 ordinary shares. Total consideration for the repurchase of shares was £1.3 billion in the first half of 2022, and was recorded within retained earnings. Basic earnings per share are based on the profit for the period attributable to ordinary shareholders and the weighted average number of ordinary shares in issue during the period (excluding treasury shares). For the calculation of the diluted earnings per share, the weighted average number of shares reflects the potential dilutive effect of employee share schemes. Earnings per share calculations are based upon the following : Reported Adjusted Headline Basic Diluted Basic Diluted Basic Diluted Six months to 30 June 2023 – Earnings £m 3,937 3,937 4,062 4,062 3,980 3,980 – Shares m 2,229 2,237 2,229 2,237 2,229 2,237 – Per share p 176.6 176.0 182.2 181.6 178.6 177.9 Six months to 30 June 2022 – Earnings £m 1,836 1,836 3,806 3,806 2,968 2,968 – Shares m 2,262 2,273 2,262 2,273 2,262 2,273 – Per share p 81.2 80.8 168.3 167.4 131.2 130.6 Year ended 31 December 2022 – Earnings £m 6,617 6,617 8,420 8,420 7,499 7,499 – Shares m 2,256 2,267 2,256 2,267 2,256 2,267 – Per share p 293.3 291.9 373.2 371.4 332.4 330.8 British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange, New York Stock Exchange Notes to the Unaudited Interim Financial Statements Continued Earnings per share (continued) Adjusted diluted earnings per share are calculated by taking the following adjustments into account (see pages 29 32 Six months ended 30 June Year ended 2023 2022 2022 pence pence pence Diluted earnings per share 176.0 80.8 291.9 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 3.6 5.5 9.6 Effect of Brazil excise and VAT cases (5.3) — (17.1) Effect of disposal of subsidiaries — — (0.3) Effect of planned disposal of subsidiaries 0.7 42.0 26.4 Effect of charges in respect of DOJ and OFAC investigations 3.0 — 19.9 Effect of charges in respect of Nigerian FCCPC case — — 3.5 Effect of restructuring and integration costs — 12.7 28.9 Effect of other adjusting items 1.9 21.9 5.2 Effect of adjusting items in net finance costs 0.6 1.5 1.2 Effect of associates’ adjusting items 0.7 2.7 4.1 Effect of adjusting items in respect of deferred taxation 0.4 0.3 (1.9) Adjusted diluted earnings per share 181.6 167.4 371.4 Impact of translational foreign exchange (5.3) — — Adjusted diluted earnings per share translated at 2022 exchange rates 176.3 167.4 371.4 The presentation of headline earnings per share, as an alternative measure of earnings per share, is mandated under the JSE Listing Requirements. It is calculated in accordance with Circular 1/2021 ‘Headline Earnings’ as issued by the South African Institute of Chartered Accountants. Diluted headline earnings per share are calculated by taking the following adjustments into account: Six months ended 30 June Year ended 2023 2022 2022 pence pence pence Diluted earnings per share 176.0 80.8 291.9 Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax) 3.0 8.8 15.5 Effect of losses on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) (0.4) (0.1) (0.7) Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) — 40.9 23.7 Effect of foreign exchange reclassification from reserves to the income statement — 0.6 0.3 Issue of shares and change in shareholding of an associate (0.7) (0.4) 0.1 Diluted headline earnings per share 177.9 130.6 330.8 The following is a reconciliation of earnings to headline earnings, in accordance with the JSE Listing Requirements: Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Earnings 3,937 1,836 6,617 Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax) 68 199 352 Effect of losses on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) (8) (2) (16) Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) (1) 929 538 Effect of foreign exchange reclassification from reserves to the income statement — 14 5 Issue of shares and change in shareholding of an associate (16) (8) 3 Headline earnings 3,980 2,968 7,499 |
Contingent liabilities and fina
Contingent liabilities and financial commitments | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of contingent liabilities [abstract] | |
Contingent liabilities and financial commitments | Contingent liabilities and financial commitments The Group has contingent liabilities in respect of litigation, taxes and guarantees in various countries. These are described below, are further described in Note 31 to the 2022 Annual Report and Accounts and Form 20-F and will be included in the 2023 Annual Report and Accounts and Form 20-F. The Group is subject to contingencies pursuant to requirements that it complies with relevant laws, regulations and standards. Failure to comply could result in restrictions in operations, damages, fines, increased tax, increased cost of compliance, interest charges, reputational damage or other sanctions. These matters are inherently difficult to quantify. In cases where the Group has an obligation as a result of a past event existing at the balance sheet date, it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated, a provision will be recognised based on best estimates and management judgment. There are, however, contingent liabilities in respect of litigation, taxes in some countries and guarantees for which no provisions have been made. While the amounts that may be payable or receivable could be material to the results or cash flows of the Group in the period in which they are recognised, the Board does not expect these amounts to have a material effect on the Group’s financial condition. Taxes The Group has exposures in respect of the payment or recovery of a number of taxes. The Group is and has been subject to a number of tax audits covering, among others, excise tax, value-added taxes, sales taxes, corporate taxes, overseas withholding taxes and payroll taxes. The estimated costs of known tax obligations have been provided in these accounts in accordance with the Group’s accounting policies. In some countries, tax law requires that full or part payment of disputed tax assessments be made pending resolution of the dispute. To the extent that such payments exceed the estimated obligation, they would not be recognised as an expense. There are disputes that are in or may proceed to litigation in a number of countries, including Brazil and the Netherlands. In relation to the Netherlands litigation, as described in the 2022 Annual Report and Accounts and Form 20-F on page 295, the initial trial covering the periods from 2014-2016 (with an aggregate potential net liability of £936 million at 31 December 2022) has taken place and judgments from the District Court of North Holland are pending. The judgments may be subject to further appeal to the High Court. The Group is also appealing the ruling in respect of sales taxes and penalties in South Korea. Group litigation Group companies, as well as other leading cigarette manufacturers, are defendants in a number of product liability cases. In a number of the cases, the amounts of compensatory and punitive damages sought are significant. While it is impossible to be certain of the outcome of any particular case or of the amount of any possible adverse verdict, the Group believes that the defences of the Group’s companies to all these various claims are meritorious on both the law and the facts, and a vigorous defence is being made everywhere. If an adverse judgment is entered against any of the Group’s companies in any case, avenues of appeal will be pursued as necessary. Such appeals could require the appellants to post appeal bonds or substitute security in amounts that could in some cases equal or exceed the amount of the judgment. At least in the aggregate, and despite the quality of defences available to the Group, it is not impossible that the Group’s results of operations or cash flows in a particular period could be materially affected by this and by the final outcome of any particular litigation. Canada In Canada, following the implementation of legislation enabling provincial governments to recover healthcare costs directly from tobacco manufacturers, ten actions for recovery of healthcare costs arising from the treatment of smoking and health-related diseases were commenced in ten provinces. Damages sought have not yet been quantified by all ten provinces; however, in respect of five provinces, the damages quantified in each of the provinces range between CAD$10 billion (approximately £5.9 billion) and CAD$118 billion (approximately £70 billion), and the province of Ontario delivered an expert report quantifying its damages in the range of CAD$280 billion (approximately £166 billion) and CAD$630 billion (approximately £374 billion) in 2016/2017 dollars. Ontario has amended its Statement of Claim to claim damages of CAD$330 billion (approximately £196 billion). On 31 January 2019, the Province delivered a further expert report claiming an additional CAD$9.4 billion (approximately £5.6 billion) and CAD$10.9 billion in damages (approximately £6.5 billion) in respect of environmental tobacco smoke. No trial date has been set. In respect of New Brunswick, on 7 March 2019, the New Brunswick Court of Queen’s Bench released a decision requiring the Province to produce a substantial amount of additional documentation and data to the defendants. As a result, the original trial date of 4 November 2019 has been delayed. No new trial date has been set. In addition to the actions commenced by the provincial governments, there are numerous class actions outstanding against Group companies. As set out below, all of these actions are currently subject to stays of proceedings. On 1 March 2019, the Quebec Court of Appeal handed down a judgment which largely upheld and endorsed the lower court’s previous decision in the Quebec class actions. ITCAN’s share of the judgment is approximately CAD$9.2 billion (approximately £5.5 billion). As a result of this judgment, the attempts by the Quebec plaintiffs to obtain payment out of the CAD$758 million (approximately £451 million) on deposit with the court, the fact that JTI-MacDonald Corp (a co-defendant in the cases) filed for protection under the CCAA on 8 March 2019 and obtained a court ordered stay of all tobacco litigation in Canada as against all defendants (including the RJR Group Companies) until 4 April 2019, and the need for a process to resolve all of the outstanding litigation across the country, on 12 March 2019, ITCAN filed for protection under the CCAA. In its application, ITCAN asked the Ontario Superior Court to stay all pending or contemplated litigation against ITCAN, certain of its subsidiaries and all other Group companies that were defendants in the Canadian tobacco litigation (the “stays”). The stays are currently in place until 29 September 2023. While the stays are in place, no steps are to be taken in connection with the Canadian tobacco litigation with respect to ITCAN, certain of its subsidiaries or any other Group company. The parties continue to work towards a plan of arrangement or compromise in a confidential mediation (by order of the Court) as part of the CCAA process. The length and ultimate outcome of the CCAA process, including the resolution of the underlying legal proceedings, remains uncertain. Notes to the Unaudited Interim Financial Statements Continued Contingent liabilities and financial commitments (continued) U.S. - Engle As at 30 June 2023, the Group’s subsidiaries, R. J. Reynolds Tobacco Company (RJRT), Lorillard Tobacco Company (Lorillard Tobacco) and Brown & Williamson Holdings, Inc., had collectively been served in 521 pending Engle progeny cases filed on behalf of approximately 642 individual plaintiffs. Many of these are in active discovery or nearing trial. In the first half of 2023, RJRT or Lorillard Tobacco paid judgments in four Engle progeny cases. Those payments totalled approximately US$25.0 million (approximately £19.7 million) in compensatory or punitive damages. Additional costs were paid in respect of attorneys' fees and statutory interest. In addition, from Engle progeny plaintiffs had been entered against RJRT or Lorillard Tobacco for US$58.3 million (approximately £46 million) in compensatory damages (as adjusted) and US$23.1 million (approximately £18 million) in punitive damages. A majority of these verdicts are in various stages in the appellate process and have been bonded as required by Florida law under the US$200 million (approximately £157 million) bond cap passed by the Florida legislature in 2009. Although the Group cannot currently predict when or how much it may be required to bond and pay, the Group’s subsidiaries will likely be required to bond and pay additional judgments as the litigation proceeds. Fox River In January 2017, NCR Corporation (NCR) and Appvion entered into a Consent Decree with the U.S. Government to resolve how the remaining clean-up will be funded and to resolve further outstanding claims between them. The Consent Decree was approved by the District Court of Wisconsin in August 2017. The U.S. Government enforcement action against NCR was terminated as a result of that order and contribution claims from the Potentially Responsible Parties (PRPs) against NCR were dismissed. On 3 January 2019, the U.S. Government, P. H. Glatfelter and Georgia-Pacific (the remaining Fox River PRPs) sought approval for a separate Consent Decree settling the allocation of costs on the Fox River. This Consent Decree was approved by the District Court in the Eastern District of Wisconsin on 14 March 2019, and concludes all existing litigation on the Fox River clean-up. Considering these developments, the provision has been reviewed. No adjustment has been proposed, other than as related to the payments in the period of £4 million, with the provision standing at £50 million at 30 June 2023 (30 June 2022: £59 million; 31 December 2022: £54 million) after disbursements. In July 2016, the High Court ruled in favour of BAT Industries p.l.c. (Industries), stating that a dividend of €135 million (approximately £115.8 million) paid by Windward Prospects Limited (Windward) to Sequana S.A. (Sequana) in May 2009 was a transaction made with the intention of putting assets beyond the reach of Industries and of negatively impacting its interests. On 10 February 2017, following a hearing in January 2017 to determine the relief due, the Court found in favour of Industries, ordering that Sequana must pay an amount up to the full value of the dividend plus interest which equates to around US$185 million (approximately £145.5 million), related to past and future clean-up costs. The Court granted all parties leave to appeal and Sequana a stay in respect of the above payments. The appeal was heard in June 2018. Judgment was given on 6 February 2019 and the Court of Appeal upheld the High Court’s findings against Sequana. The Court of Appeal refused applications made by both parties for a further appeal to the UK Supreme Court. Both parties applied directly to the UK Supreme Court for permission to appeal in March 2019. On 31 July 2019, BTI 2014 LLC (BTI), a Group subsidiary, was granted permission to appeal to the Supreme Court in respect of its claims against the former Windward directors (who authorised the dividend payments to Sequana). On the same day, the Supreme Court refused Sequana permission to appeal. The hearing of BTI’s appeal took place before the Supreme Court on 4 and 5 May 2021, and, on 5 October 2022, the Supreme Court handed down its judgment, dismissing BTI's appeal. In February 2017, Sequana entered into a process in France seeking court protection (the “Sauvegarde”), exiting the Sauvegarde in June 2017. In May 2019, Sequana was placed into formal liquidation proceedings. No payments have been received from Sequana. Kalamazoo Georgia-Pacific, a designated PRP in respect of the Kalamazoo River in Michigan, also pursued NCR in relation to remediation costs caused by PCBs released into that river. On 26 September 2013, the Michigan Court held that NCR was liable as a PRP on the basis that it had arranged for the disposal of hazardous material for the purposes of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA). Following further litigation, on 11 December 2019, NCR announced that it had entered into a Consent Decree with the U.S. Government and the State of Michigan (subsequently approved by the Michigan Court on 2 December 2020), pursuant to which it assumed liability for certain remediation work at the Kalamazoo River. The payments to be made on the face of the Consent Decree in respect of such work total approximately US$245 million (approximately £204 million). The Consent Decree also provides for the payment by NCR of an outstanding judgment against it of approximately US$20 million (approximately £16.6 million) to Georgia-Pacific. The quantum of the clean-up costs for the Kalamazoo River is presently unclear. It may well exceed the amounts payable on the face of the Consent Decree. On 10 February 2023, NCR filed a complaint in the United States District Court for the Southern District of New York against Industries, seeking a declaration that Industries must compensate NCR for 60% of any costs NCR incurs relating to the Kalamazoo River site on the asserted basis that the Kalamazoo River constitutes a ‘Future Site’ for the purposes of a 1998 Settlement Agreement between it, Appvion and Industries. On 23 June 2023, Industries filed its answer and counterclaims in the proceedings. Investigations There are instances where Group companies are cooperating with relevant national competition authorities in relation to ongoing competition law investigations and/or engaged in legal proceedings at the appellate level, including (amongst others) in the Netherlands and Nigeria. In regards to the previously disclosed investigation by the Nigerian Federal Competition and Consumer Protection Commission (FCCPC) into alleged violations of the Nigerian Competition and Consumer Protection Act and National Tobacco Control Act, a consent order was entered into between the FCCPC and British American Tobacco (Holdings) Limited, British American Tobacco (Nigeria) Limited and British American Tobacco Marketing (Nigeria) Limited in December 2022, terminating the investigation and associated proceedings, replacing the previous Final Order. Amongst other measures, the Final Order includes provision for the payment in Naira of a penalty equivalent to US$110 million (approximately £86.5 million) and the Group's Nigerian subsidiaries will be subject to a two-year monitorship. From time to time, the Group investigates, and becomes aware of governmental authorities’ investigations into allegations of misconduct, including alleged breaches of sanctions and allegations of corruption, against Group companies. Some of these allegations are currently being investigated. The Group cooperates with the authorities’ investigations, where appropriate. For instance, British American Tobacco Italia SpA has been charged with administrative offences in Florence, Italy in a case against a large number of individual and corporate defendants. This relates to potential allegations of failure to supervise or take appropriate steps to prevent alleged corruption by two (now former) employees. Any financial penalty is not thought likely to be material. Notes to the Unaudited Interim Financial Statements Continued Contingent liabilities and financial commitments (continued) Investigations (continued) On 25 April 2023, the Group announced that it had reached an agreement with the DOJ and OFAC to resolve previously disclosed investigations into suspicions of sanctions breaches. These concerned business activities relating to the Democratic People’s Republic of Korea between 2007 and 2017. British American Tobacco p.l.c. entered into a three-year deferred prosecution agreement ("DPA") with the DOJ and a civil settlement agreement with OFAC. The DOJ’s charges against the Company - one count of conspiring to commit bank fraud and one count of conspiring to violate sanctions laws - were filed and will later be dismissed if the Company abides by the terms of the DPA. In addition, a BAT subsidiary in Singapore, British-American Tobacco Marketing (Singapore) Private Limited, pleaded guilty to the same charges. The total amount payable to the U.S. authorities is $635 million plus interest, which will be paid by British American Tobacco p.l.c. Summary Having regard to all these matters, with the exception of Fox River, Quebec, and the DOJ and OFAC investigations, the Group does not consider it appropriate to make any provision or accrual in respect of any pending litigation. The Group does not believe that the ultimate outcome of this litigation will significantly impair the Group’s financial condition. If the facts and circumstances change, then there could be a material impact on the financial statements of the Group. In addition, the Group accrues for damages, attorneys' fees and/or statutory interest, including in respect of certain Engle progeny cases, certain U.S. individual smoking and health cases and the DOJ medical reimbursement/corrective statement case. Full details of the litigation against Group companies and tax disputes as at 30 June 2023 will be included in the Annual Report and Accounts and Form 20-F for the year ended 31 December 2023. Whilst there has been some movement on new and existing cases against Group companies, there have been, except as otherwise stated, no material developments to date in 2023 that would impact the financial position of the Group. |
Franked Investment Income Group
Franked Investment Income Group Litigation order | 6 Months Ended |
Jun. 30, 2023 | |
Gains (losses) on litigation settlements [abstract] | |
Franked Investment Income Group Litigation order | Franked Investments Income Group Litigation Order The Group is the principal test claimant in an action in the United Kingdom against HM Revenue and Customs (HMRC) in the FII GLO. There were 17 corporate groups in the FII GLO as at 30 June 2023. The case concerns the treatment for UK corporate tax purposes of profits earned overseas and distributed to the UK. The Supreme Court heard appeals in two separate trials during 2020. The judgment in the first hearing was handed down in November 2020 and concerned the time limit for bringing claims. The Supreme Court remitted that matter to the High Court to determine whether the claim is within time on the facts. The judgment from the second hearing was handed down in July 2021 and concerned issues relating to the type of claims BAT is entitled to bring. Applying that judgment reduces the value of the FII GLO claim to approximately £0.3 billion, mainly as the result of the application of simple interest and the limitation to claims for advance corporation tax offset against lawful corporation tax charges, which is subject to the determination of the timing issue by the High Court and any subsequent appeal. During 2015, HMRC paid to the Group a gross amount of £1.2 billion in two separate payments, less a deduction (withheld by HMRC) of £0.3 billion. The payments made by HMRC have been made without any admission of liability and are subject to refund were HMRC to succeed on appeal. Due to the uncertainty of the amounts and eventual outcome the Group has not recognised any impact in the income statement in the current or prior period in respect of the receipt (being net £0.9 billion) which is held within trade and other payables. Any future recognition as income will be treated as an adjusting item, due to the size of the order, with interest of £28 million for the six months ended 30 June 2023 (30 June 2022: £13 million) accruing on the balance, which was also treated as an adjusting item. Further information on FII GLO is described in Note 10 to the Group’s Annual Report and Accounts and Form 20-F for the year ended 31 December 2022, page 220. The final resolution of all issues in the litigation is likely to take a number of years. The Group made an interim repayment to HMRC of £50 million in 2022 and intends to make further interim repayments in future periods. |
Retirement benefit schemes
Retirement benefit schemes | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure of defined benefit plans [abstract] | |
Retirement benefit schemes | Retirement benefit schemes The Group’s subsidiary undertakings operate various funded and unfunded defined benefit schemes, including pension and post-retirement healthcare schemes, and defined contribution schemes in various jurisdictions, with its most significant arrangements being in the U.S., the UK, Canada, Germany, Switzerland and the Netherlands. Together, schemes in these territories account for over 90% of the total underlying obligations of the Group’s defined benefit arrangements and over 70% of the current service cost. Benefits provided through defined contribution schemes are charged as an expense as payments fall due. The liabilities arising in respect of defined benefit schemes are determined in accordance with the advice of independent, professionally qualified actuaries, using the projected unit credit method. It is Group policy that all schemes are formally valued at least every three years. |
Post balance sheet event
Post balance sheet event | 6 Months Ended |
Jun. 30, 2023 | |
Post Balance Sheet Event [Abstract] | |
Post balance sheet event | Post balance sheet event On the 24 July 2023, ITC Ltd., a Group associate, announced the proposal of a demerger of its ‘Hotels Business’ under a scheme of arrangement by which 60% of the newly incorporated entity will be held directly by ITC's shareholders proportionate to their shareholding in ITC. Approval for this demerger is being sought at a meeting scheduled for 14 August 2023. The announcement of this proposed demerger does not impact the half-year accounts for the period ending 30 June 2023. |
Summarised financial informatio
Summarised financial information | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Condensed Consolidating Financial Information [Abstract] | |
Summarised financial information | Summarised financial information The following summarised financial information is required by the rules of the Securities and Exchange Commission and has been prepared in accordance with Section 3-10 of Regulation S-X in respect of the guarantees of: – US$11.00 billion of outstanding bonds issued by B.A.T Capital Corporation (BATCAP) in connection with the acquisition of Reynolds, including registered bonds issued in exchange for the initially issued bonds (the 2017 Bonds); – US$12.15 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on 17 July 2019; – US$2.50 billion of outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on 17 July 2019; and – US$0.6 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on 1 July 2022, pursuant to which the Company, BATCAP or BATIF may issue an indefinite amount of debt securities. As of 28 July 2020, all relevant Group entities suspended their reporting obligations with respect to the US$7.7 billion (30 June 2022 and 31 December 2022: US$7.7 billion) of RAI unsecured notes and US$22.1 million (30 June 2022 and 31 December 2022: US$40.9 million) of Lorillard unsecured notes. As such, no summarised financial information is provided with respect to these securities. As described below, Reynolds American Inc. (Reynolds American/RAI) is a subsidiary guarantor of all outstanding series of BATCAP and BATIF bonds. Under the terms of the indentures governing such notes, any subsidiary guarantor (including Reynolds American) other than BATCAP or BATIF, as applicable, BATNF and BATHTN (as defined below), will automatically and unconditionally be released from all obligations under its guarantee, and such guarantee shall thereupon terminate and be discharged and of no further force or effect, in the event that (1) its guarantee of all then outstanding notes issued under the Group’s EMTN Programme is released or (2) at substantially the same time its guarantee of the debt securities is terminated, such subsidiary guarantor is released from all obligations in respect of indebtedness for borrowed money for which such subsidiary guarantor is an obligor (as a guarantor or borrower). Under the EMTN Programme, Reynolds American’s guarantee is released if at any time the aggregate amount of indebtedness for borrowed money, subject to certain exceptions, for which Reynolds American is an obligor, does not exceed 10% of the outstanding long-term debt of BAT as reflected in the balance sheet included in BAT's most recent publicly released interim or annual consolidated financial statements. Reynolds American’s guarantee may be released notwithstanding Reynolds American guaranteeing other indebtedness, provided Reynolds American’s guarantee of outstanding notes issued under the EMTN Programme is released. If Reynolds American’s guarantee is released, BAT is not required to replace such guarantee, and the debt securities will have the benefit of fewer subsidiary guarantees for the remaining maturity of the debt securities. Note: The following summarised financial information reports the unconsolidated contribution of each applicable company to the Group’s consolidated results and not the separate financial statements for each applicable company as local financial statements are prepared in accordance with local legislative requirements and may differ from the financial information provided below. In particular, in respect of the United States region, all financial statements and financial information provided by or with respect to the U.S. business or RAI (and/or RAI and its subsidiaries (collectively, the Reynolds Group)) are prepared on the basis of U.S. GAAP and constitute the primary financial statements or financial information of the U.S. business or RAI (and/or the Reynolds Group). Solely for the purpose of consolidation within the results of BAT p.l.c. and the BAT Group, this financial information is then converted to IFRS. To the extent any such financial information provided in these financial statements relates to the U.S. business or RAI (and/or the Reynolds Group), it is provided as an explanation of the U.S. business’s or RAI’s (and/or the Reynolds Group’s) primary U.S. GAAP-based financial statements and information. The subsidiaries disclosed below are wholly-owned and the guarantees provided are full and unconditional, and joint and several: a. British American Tobacco p.l.c. (as the parent guarantor), referred to as ‘BAT p.l.c.’ in the financials below; b. B.A.T Capital Corporation (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATCAP’ in the financials below; c. B.A.T. International Finance p.l.c. (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATIF’ in the financials below ; d. B.A.T. Netherlands Finance B.V. (as a subsidiary guarantor), referred to as ‘BATNF’ in the financials below; e. Reynolds American Inc. (as a subsidiary guarantor), referred to as ‘RAI’ in the financials below; and f. British American Tobacco Holdings (The Netherlands) B.V. (as a subsidiary guarantor of the 2017 Bonds only), referred to as ‘BATHTN’ in the financials below. In accordance with Section 13-01 of Regulation S-X, information in respect of investments in subsidiaries that are not issuers or guarantors has been excluded from non-current assets as shown in the balance sheet table below. The “BATHTN” column in the summarised financial information is only applicable in the context of the 2017 Bonds. British American Tobacco Holdings (The Netherlands) B.V. (‘BATHTN’) is not an issuer nor a guarantor of any of the other securities referenced in this note. None of the issuers or other guarantors has material balances with or an investment in BATHTN. Investments in subsidiaries represent share capital acquired in relation to or issued by subsidiary undertakings. In the case of debt securities that may be issued by BAT p.l.c., BATCAP or BATIF under an indenture to be entered into (the “2022 Indenture”) and referred to in the registration statement in Form F-3 (Registration No. 333-265958), one or more of BATCAP, BATIF, BATNF and RAI may guarantee such debt securities to the extent specified in the applicable supplemental indenture to the 2022 Indenture. In addition, BAT p.l.c. will be a parent guarantor in respect of any debt securities issued by BATCAP or BATIF under the 2022 Indenture. Notes to the Unaudited Interim Financial Statements Continued Summarised financial information (continued) Six months ended 30 June 2023 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Income Statement Revenue — — — — — — (Loss)/profit from operations (521) — (1) — 15 4 Dividend income — — 1 — 2,276 — Net finance income/(costs) 244 (96) 567 — (267) — Loss/(profit) before taxation (277) (96) 567 — 2,024 4 Taxation on ordinary activities — (2) 7 — 64 (1) Loss/(profit) for the period (277) (98) 574 — 2,088 3 Intercompany transactions - Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (513) — (8) — 25 3 Transactions with non-issuer/non-guarantor subsidiaries net finance income 144 267 802 7 60 — Dividend income from non-issuer/non-guarantor subsidiaries — — 1 — 2,276 — Six months ended 30 June 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Income Statement Revenue — — — — — — (Loss)/profit from operations (5) — — — 8 1 Dividend income — — — — 2,014 — Net finance income/(costs) 113 (29) (118) — (227) — Profit/(loss) before taxation 108 (29) (118) — 1,795 1 Taxation on ordinary activities — (19) 2 — 51 (1) Profit/(loss) for the period 108 (48) (116) — 1,846 — Intercompany transactions - Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (5) — — — 26 — Transactions with non-issuer/non-guarantor subsidiaries net finance income 11 381 136 — 14 — Dividend income from non-issuer/non-guarantor subsidiaries — — — — 2,014 — Notes to the Unaudited Interim Financial Statements Continued Summarised financial information (continued) As at 30 June 2023 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Balance Sheet Non-current assets 1,917 19,834 2,425 2,135 335 47 Current assets 6,926 9,278 42,637 32 1,050 10 Non-current liabilities 1,580 18,960 13,863 2,135 9,396 12 Non-current borrowings 1,571 18,727 13,392 2,135 9,349 — Other non-current liabilities 9 233 470 — 47 12 Current liabilities 575 10,092 28,811 31 1,225 3 Current borrowings 32 10,023 28,277 31 650 2 Other current liabilities 543 69 534 — 575 1 Intercompany transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 6,835 16,171 42,313 — 662 9 Amounts due to non-issuer/non-guarantor subsidiaries 6 2,988 22,608 — 36 2 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 25,253 1,522 As at 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Balance Sheet Non-current assets 1,917 20,962 2,480 1,500 405 45 Current assets 9,166 7,947 42,748 22 1,135 8 Non-current liabilities 1,580 20,018 14,058 1,500 10,094 12 Non-current borrowings 1,572 19,762 13,510 1,500 10,033 — Other non-current liabilities 8 256 548 — 61 12 Current liabilities 55 8,749 29,379 21 1,011 1 Current borrowings 23 8,657 28,525 21 568 1 Other current liabilities 32 92 854 — 443 — Intercompany transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 9,117 17,003 42,752 — 700 8 Amounts due to non-issuer/non-guarantor subsidiaries 5 3,890 22,702 — 34 1 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 26,690 1,573 |
Perpetual hybrid bonds
Perpetual hybrid bonds | 6 Months Ended |
Jun. 30, 2023 | |
Perpetual Hybrid Bonds [Abstract] | |
Perpetual hybrid bonds | Perpetual hybrid bonds In 2021, BAT p.l.c. issued two €1 billion of perpetual hybrid bonds which were classified as equity as there is no contractual obligation to either repay the principal or make payments of interest. Further information on perpetual hybrid bonds is described in note 22 of the Group’s Annual Report and Accounts and Form 20-F for the year ended 31 December 2022, page 255. BAT p.l.c.’s unconsolidated contribution to the Group’s consolidated equity results is shown below: As at 30 June As at 31 December 2023 2022 2022 £m £m £m Total Equity Share capital 614 614 614 Share premium 112 112 113 Perpetual hybrid bonds 1,685 1,685 1,685 Other Equity 31,511 29,956 34,270 |
Analysis of revenue and profi_2
Analysis of revenue and profit from operations by segment (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Reportable Segments [Abstract] | |
Summary of analysis of revenue and profit from operations by segment | Six months ended 30 June 2023 2022 Reported Exchange Reported at CC 2 Reported Revenue £m £m £m £m U.S. 5,910 (294) 5,616 5,934 AME 4,730 (101) 4,629 4,243 APMEA 2,801 155 2,956 2,692 Total Region 13,441 (240) 13,201 12,869 Six months ended 30 June 2023 2022 Reported Adj Items 1 Adjusted Exchange Adjusted at CC 2 Reported Adj Items 1 Adjusted Profit from Operations £m £m £m £m £m £m £m £m U.S. 3,168 137 3,305 (175) 3,130 2,801 335 3,136 AME 1,767 (119) 1,648 (49) 1,599 508 975 1,483 APMEA 1,000 67 1,067 54 1,121 369 657 1,026 Total Region 5,935 85 6,020 (170) 5,850 3,678 1,967 5,645 Notes to the analysis of revenue and profit from operations above: 1. Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence. 2. CC: constant currency – measures are calculated based on a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments . |
Adjusting items included in p_2
Adjusting items included in profit from operations (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Profit From Operations [Abstract] | |
Summary of adjusting items within profit from operations | In summary, in the six months ended 30 June 2023, the Group incurred £85 million (30 June 2022: £1,967 million; 31 December 2022: £1,885 million ) of adjusting items within profit from operations: Six months ended 30 June Year ended 2023 2022 2022 £m £m £m (a) Restructuring and integration costs (2) 333 771 (b) Amortisation and impairment of trademarks and similar intangibles 108 161 285 (c) Charges in connection with planned disposal of subsidiaries 17 957 612 (c) (Credit)/charges in connection with disposal of subsidiaries (1) 1 (6) (d) Credit in respect of partial buy-out of the pension fund in the U.S. — (15) (16) (d) Credit in respect of calculation of excise on social contributions in Brazil (147) — — (d) Credit in respect of calculation of VAT on social contributions in Brazil (13) — (460) (d) Charges in respect of DOJ and OFAC investigations 66 450 450 (d) Charges in respect of Nigeria Federal Competition and Consumer Protection Commission (FCCPC) case — — 79 (d) Other adjusting items (including Engle ) 57 80 170 Total adjusting items included in profit from operations 85 1,967 1,885 Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Employee benefit costs (2) 49 315 Depreciation, amortisation and impairment costs — 131 220 Other operating expenses — 153 237 Other operating income — — (1) Total (2) 333 771 |
Reconciliation between total assets available for sale and estimated recoverable amount | The following is a reconciliation between the total assets available for sale and their estimated recoverable amount (fair value less costs to sell): At 30 June 2023 £m Total assets held-for-sale* 1,088 Impairment of non-current assets held-for-sale - Russia and Belarus (189) 899 Excess impairment beyond non-current assets held-for-sale - Russia and Belarus (365) Assets held-for-sale* 534 * Includes £9 million of assets held-for-sale in territories other than Russia and Belarus. Also included in 2023 is a credit of £1 million (30 June 2022: charge of £1 million) related to the sale of the Group’s Iranian business, which was completed in 2021. |
Cash flow (Tables)
Cash flow (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Cash Flow [Abstract] | |
Schedule of cash flows from operating activities | Net cash generated from operating activities Net cash generated from operating activities in the IFRS cash flows on page 27 Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Profit for the period 4,035 1,938 6,846 Taxation on ordinary activities 1,268 1,123 2,478 Share of post-tax results of associates and joint ventures (289) (200) (442) Net finance costs 921 817 1,641 Profit from operations 5,935 3,678 10,523 Adjustments for: – depreciation, amortisation and impairment costs 480 659 1,305 – increase in inventories (357) (437) (246) – (increase)/decrease in trade and other receivables (425) 41 (42) – decrease in Master Settlement Agreement payable (897) (859) (145) – increase/(decrease) in trade and other payables 347 (84) 3 – decrease in retirement benefit liabilities (55) (56) (110) – (decrease)/increase in other provisions for liabilities (535) 399 643 – other non-cash items 29 989 606 Cash generated from operating activities 4,522 4,330 12,537 Dividends received from associates 202 171 394 Tax paid (1,349) (1,280) (2,537) Net cash generated from operating activities 3,375 3,221 10,394 |
Fair value measurements and v_2
Fair value measurements and valuation processes (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Fair Value Measurement [Abstract] | |
Disclosure of fair value measurement of assets and liabilities explanatory | Level 2 assets and liabilities are shown below. As at 30 June As at 31 December 2023 2022 2022 £m £m £m Assets at fair value Derivatives relating to – interest rate swaps 6 12 43 – cross-currency swaps 234 227 254 – forward foreign currency contracts 305 267 264 Assets at fair value 545 506 561 Liabilities at fair value Derivatives relating to – interest rate swaps 398 303 450 – cross-currency swaps 75 114 121 – forward foreign currency contracts 208 512 358 Liabilities at fair value 681 929 929 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings per share [abstract] | |
Summary of reconciliation of earnings used to calculate earnings per share explanatory | Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Earnings attributable to owners of the parent 3,959 1,859 6,666 Coupon on perpetual hybrid bonds (29) (29) (60) Tax on coupon on perpetual hybrid bonds 7 6 11 Earnings 3,937 1,836 6,617 |
Summary of earnings per share calculations | Earnings per share calculations are based upon the following : Reported Adjusted Headline Basic Diluted Basic Diluted Basic Diluted Six months to 30 June 2023 – Earnings £m 3,937 3,937 4,062 4,062 3,980 3,980 – Shares m 2,229 2,237 2,229 2,237 2,229 2,237 – Per share p 176.6 176.0 182.2 181.6 178.6 177.9 Six months to 30 June 2022 – Earnings £m 1,836 1,836 3,806 3,806 2,968 2,968 – Shares m 2,262 2,273 2,262 2,273 2,262 2,273 – Per share p 81.2 80.8 168.3 167.4 131.2 130.6 Year ended 31 December 2022 – Earnings £m 6,617 6,617 8,420 8,420 7,499 7,499 – Shares m 2,256 2,267 2,256 2,267 2,256 2,267 – Per share p 293.3 291.9 373.2 371.4 332.4 330.8 |
Adjusted earnings per share explanatory | Adjusted diluted earnings per share are calculated by taking the following adjustments into account (see pages 29 32 Six months ended 30 June Year ended 2023 2022 2022 pence pence pence Diluted earnings per share 176.0 80.8 291.9 Effect of amortisation and impairment of goodwill, trademarks and similar intangibles 3.6 5.5 9.6 Effect of Brazil excise and VAT cases (5.3) — (17.1) Effect of disposal of subsidiaries — — (0.3) Effect of planned disposal of subsidiaries 0.7 42.0 26.4 Effect of charges in respect of DOJ and OFAC investigations 3.0 — 19.9 Effect of charges in respect of Nigerian FCCPC case — — 3.5 Effect of restructuring and integration costs — 12.7 28.9 Effect of other adjusting items 1.9 21.9 5.2 Effect of adjusting items in net finance costs 0.6 1.5 1.2 Effect of associates’ adjusting items 0.7 2.7 4.1 Effect of adjusting items in respect of deferred taxation 0.4 0.3 (1.9) Adjusted diluted earnings per share 181.6 167.4 371.4 Impact of translational foreign exchange (5.3) — — Adjusted diluted earnings per share translated at 2022 exchange rates 176.3 167.4 371.4 |
Disclosure of headline earnings loss explanatory | Diluted headline earnings per share are calculated by taking the following adjustments into account: Six months ended 30 June Year ended 2023 2022 2022 pence pence pence Diluted earnings per share 176.0 80.8 291.9 Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax) 3.0 8.8 15.5 Effect of losses on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) (0.4) (0.1) (0.7) Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) — 40.9 23.7 Effect of foreign exchange reclassification from reserves to the income statement — 0.6 0.3 Issue of shares and change in shareholding of an associate (0.7) (0.4) 0.1 Diluted headline earnings per share 177.9 130.6 330.8 |
Disclosure of reconciliation of earnings to headline earnings explanatory | Six months ended 30 June Year ended 2023 2022 2022 £m £m £m Earnings 3,937 1,836 6,617 Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax) 68 199 352 Effect of losses on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) (8) (2) (16) Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) (1) 929 538 Effect of foreign exchange reclassification from reserves to the income statement — 14 5 Issue of shares and change in shareholding of an associate (16) (8) 3 Headline earnings 3,980 2,968 7,499 |
Summarised financial informat_2
Summarised financial information (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Disclosure Of Condensed Consolidating Financial Information [Abstract] | |
Summarised financial information of income statement | Six months ended 30 June 2023 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Income Statement Revenue — — — — — — (Loss)/profit from operations (521) — (1) — 15 4 Dividend income — — 1 — 2,276 — Net finance income/(costs) 244 (96) 567 — (267) — Loss/(profit) before taxation (277) (96) 567 — 2,024 4 Taxation on ordinary activities — (2) 7 — 64 (1) Loss/(profit) for the period (277) (98) 574 — 2,088 3 Intercompany transactions - Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (513) — (8) — 25 3 Transactions with non-issuer/non-guarantor subsidiaries net finance income 144 267 802 7 60 — Dividend income from non-issuer/non-guarantor subsidiaries — — 1 — 2,276 — Six months ended 30 June 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Income Statement Revenue — — — — — — (Loss)/profit from operations (5) — — — 8 1 Dividend income — — — — 2,014 — Net finance income/(costs) 113 (29) (118) — (227) — Profit/(loss) before taxation 108 (29) (118) — 1,795 1 Taxation on ordinary activities — (19) 2 — 51 (1) Profit/(loss) for the period 108 (48) (116) — 1,846 — Intercompany transactions - Income Statement Transactions with non-issuer/non-guarantor subsidiaries (expense)/income (5) — — — 26 — Transactions with non-issuer/non-guarantor subsidiaries net finance income 11 381 136 — 14 — Dividend income from non-issuer/non-guarantor subsidiaries — — — — 2,014 — |
Summarised financial information of balance sheet | As at 30 June 2023 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Balance Sheet Non-current assets 1,917 19,834 2,425 2,135 335 47 Current assets 6,926 9,278 42,637 32 1,050 10 Non-current liabilities 1,580 18,960 13,863 2,135 9,396 12 Non-current borrowings 1,571 18,727 13,392 2,135 9,349 — Other non-current liabilities 9 233 470 — 47 12 Current liabilities 575 10,092 28,811 31 1,225 3 Current borrowings 32 10,023 28,277 31 650 2 Other current liabilities 543 69 534 — 575 1 Intercompany transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 6,835 16,171 42,313 — 662 9 Amounts due to non-issuer/non-guarantor subsidiaries 6 2,988 22,608 — 36 2 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 25,253 1,522 As at 31 December 2022 BAT p.l.c. BATCAP BATIF BATNF RAI BATHTN £m £m £m £m £m £m Balance Sheet Non-current assets 1,917 20,962 2,480 1,500 405 45 Current assets 9,166 7,947 42,748 22 1,135 8 Non-current liabilities 1,580 20,018 14,058 1,500 10,094 12 Non-current borrowings 1,572 19,762 13,510 1,500 10,033 — Other non-current liabilities 8 256 548 — 61 12 Current liabilities 55 8,749 29,379 21 1,011 1 Current borrowings 23 8,657 28,525 21 568 1 Other current liabilities 32 92 854 — 443 — Intercompany transactions - Balance Sheet Amounts due from non-issuer/non-guarantor subsidiaries 9,117 17,003 42,752 — 700 8 Amounts due to non-issuer/non-guarantor subsidiaries 5 3,890 22,702 — 34 1 Investment in subsidiaries (that are not issuers or guarantors) 27,234 — 718 — 26,690 1,573 |
Perpetual hybrid bonds (Tables)
Perpetual hybrid bonds (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Perpetual Hybrid Bonds [Abstract] | |
Disclosure of unconsolidated contribution to consolidated equity results | As at 30 June As at 31 December 2023 2022 2022 £m £m £m Total Equity Share capital 614 614 614 Share premium 112 112 113 Perpetual hybrid bonds 1,685 1,685 1,685 Other Equity 31,511 29,956 34,270 |
Analysis of revenue and profi_3
Analysis of revenue and profit from operations by segment - Summary of analysis of revenue and profit from operations by segment (Details) £ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Dec. 31, 2022 GBP (£) | Apr. 01, 2023 region | Mar. 31, 2023 region | ||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | [1] | £ 13,441 | £ 12,869 | £ 27,655 | ||
Profit from Operations | 5,935 | 3,678 | £ 10,523 | |||
Number of management regions | region | 3 | 4 | ||||
Reported | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 13,441 | 12,869 | ||||
Profit from Operations | 5,935 | 3,678 | ||||
Adjusting items | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 85 | 1,967 | ||||
Adjusted | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 6,020 | 5,645 | ||||
Exchange | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | (240) | |||||
Profit from Operations | (170) | |||||
Adjusted at CC2 | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 13,201 | |||||
Profit from Operations | 5,850 | |||||
U.S. | Reported | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 5,910 | 5,934 | ||||
Profit from Operations | 3,168 | 2,801 | ||||
U.S. | Adjusting items | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 137 | 335 | ||||
U.S. | Adjusted | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 3,305 | 3,136 | ||||
U.S. | Exchange | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | (294) | |||||
Profit from Operations | (175) | |||||
U.S. | Adjusted at CC2 | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 5,616 | |||||
Profit from Operations | 3,130 | |||||
AME | Reported | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 4,730 | 4,243 | ||||
Profit from Operations | 1,767 | 508 | ||||
AME | Adjusting items | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | (119) | 975 | ||||
AME | Adjusted | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 1,648 | 1,483 | ||||
AME | Exchange | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | (101) | |||||
Profit from Operations | (49) | |||||
AME | Adjusted at CC2 | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 4,629 | |||||
Profit from Operations | 1,599 | |||||
APMEA | Reported | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 2,801 | 2,692 | ||||
Profit from Operations | 1,000 | 369 | ||||
APMEA | Adjusting items | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 67 | 657 | ||||
APMEA | Adjusted | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Profit from Operations | 1,067 | £ 1,026 | ||||
APMEA | Exchange | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 155 | |||||
Profit from Operations | 54 | |||||
APMEA | Adjusted at CC2 | ||||||
Disclosure Of Operating Segments [Line Items] | ||||||
Revenue | 2,956 | |||||
Profit from Operations | £ 1,121 | |||||
[1]Revenue is net of duty, excise and other taxes of £18,721 million and £18,190 million for the six months ended 30 June 2023 and 30 June 2022, respectively, and £38,527 million for the year ended 31 December 2022 |
Adjusting items included in p_3
Adjusting items included in profit from operations - Summary of adjusting items within profit from operations (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Profit from Operations [Line Items] | |||
(a) Restructuring and integration costs | £ (2) | £ 333 | £ 771 |
(c) Charges in connection with planned disposal of subsidiaries | 17 | 957 | 612 |
(c) (Credit)/charges in connection with disposal of subsidiaries | (1) | 1 | (6) |
(d) Credit in respect of calculation of excise on social contributions in Brazil | (147) | 0 | 0 |
(d) Credit in respect of calculation of VAT on social contributions in Brazil | (13) | 0 | (460) |
(d) Charges in respect of DOJ and OFAC investigations | 66 | 450 | 450 |
(d) Charges in respect of Nigeria Federal Competition and Consumer Protection Commission (FCCPC) case | 0 | 0 | 79 |
(d) Other adjusting items (including Engle) | 57 | 80 | 170 |
Total adjusting items included in profit from operations | 85 | 1,967 | 1,885 |
Partial buy-out of pension fund in U.S. | |||
Profit from Operations [Line Items] | |||
(d) Credit in respect of partial buy-out of the pension fund in the U.S. | £ 0 | £ 15 | £ 16 |
Adjusting items included in p_4
Adjusting items included in profit from operations - Summary of restructuring and integration costs explanatory (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Profit From Operations [Abstract] | |||
Employee benefit costs | £ (2) | £ 49 | £ 315 |
Depreciation, amortisation and impairment costs | 0 | 131 | 220 |
Other operating expenses | 0 | 153 | 237 |
Other operating income | 0 | 0 | (1) |
Total | £ (2) | £ 333 | £ 771 |
Adjusting items included in p_5
Adjusting items included in profit from operations - Narrative (a-c) (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Profit from Operations [Line Items] | |||
Annualised savings | £ 1,900 | ||
Annualised savings term | 3 years | ||
Property, plant and equipment | £ 4,521 | £ 4,728 | £ 4,867 |
Cash and cash equivalents | 3,681 | 3,568 | 3,446 |
Trade and other payables | 9,217 | 8,823 | 10,449 |
Impairment and associated costs in respect of assets/liabilities held-for-sale/disposed of in the period | (1) | 1 | (6) |
– other non-cash items | 29 | 989 | 606 |
Russia | In respect of assets held-for-sale | Subsidiaries | |||
Profit from Operations [Line Items] | |||
Property, plant and equipment | 189 | ||
Trade and other receivables | 345 | ||
Cash and cash equivalents | 364 | ||
Other current assets | 180 | ||
Russia | Classified as held for sale | Subsidiaries | |||
Profit from Operations [Line Items] | |||
Borrowings | 8 | ||
Trade and other payables | 299 | ||
Impairment and associated costs in respect of assets/liabilities held-for-sale/disposed of in the period | 554 | ||
– other non-cash items | 58 | ||
Foreign exchange reclassification | 500 | ||
Trademarks and similar intangibles | |||
Profit from Operations [Line Items] | |||
(b) Amortisation and impairment of trademarks and similar intangibles | £ 108 | £ 161 | £ 285 |
Trademarks and similar intangibles | Top of range | |||
Profit from Operations [Line Items] | |||
Intangibles assets expected useful lives | 20 years |
Adjusting items included in p_6
Adjusting items included in profit from operations - Reconciliation between total assets available for sale and estimated recoverable amount (Details) - GBP (£) £ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Profit from Operations [Line Items] | |||
Assets classified as held-for-sale | £ 534 | £ 767 | £ 554 |
Classified as held for sale | |||
Profit from Operations [Line Items] | |||
Total assets held-for-sale | 1,088 | ||
Assets available for sale | 899 | ||
Assets classified as held-for-sale | 534 | ||
Russia and Belarus | Classified as held for sale | |||
Profit from Operations [Line Items] | |||
Impairment of non-current assets held-for-sale - Russia and Belarus | (189) | ||
Excess impairment beyond non-current assets held-for-sale - Russia and Belarus | (365) | ||
Other than Russia and Belarus | Classified as held for sale | |||
Profit from Operations [Line Items] | |||
Assets classified as held-for-sale | £ 9 |
Adjusting items included in p_7
Adjusting items included in profit from operations -Narrative (d-e) (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Profit from Operations [Line Items] | |||
Other adjusting items which have been adjusted within other operating expenses | £ (37) | £ 515 | |
(d) Charges in respect of DOJ and OFAC investigations | 66 | 450 | £ 450 |
(d) Credit in respect of calculation of VAT on social contributions in Brazil | 13 | 0 | 460 |
Net losses on litigation settlements | (57) | (80) | (170) |
Engle progeny cases | |||
Profit from Operations [Line Items] | |||
Litigation expense included in other operating expense | 104 | ||
MSA litigation | |||
Profit from Operations [Line Items] | |||
Gains on litigation settlements | 24 | ||
Partial buy-out of pension fund in U.S. | |||
Profit from Operations [Line Items] | |||
Gain (loss) on settlement of plan assets and liabilities | £ 0 | £ (15) | £ (16) |
Adjusting items included in n_2
Adjusting items included in net finance costs (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Russia | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Foreign exchange arising on the revaluation of foreign currency balances | £ 28 | |
FII GLO | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Interest related to FII GLO | £ 28 | 13 |
Adjusting item | ||
Disclosure of attribution of expenses by nature to their function [line items] | ||
Net finance costs | £ 23 | £ 41 |
Adjusting items included in r_2
Adjusting items included in results of associates and joint ventures (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disclosure of joint operations [line items] | |||
Share of post-tax results of associates and joint ventures | £ 289 | £ 200 | £ 442 |
Organigram Inc | |||
Disclosure of joint operations [line items] | |||
Impairment charges | 35 | 65 | |
Impaired investment net of tax | 33 | £ 59 | |
Recoverable amount left after impairment | 33 | ||
ITC Ltd. | |||
Disclosure of joint operations [line items] | |||
Gains (losses) on disposals of investments | £ (16) | £ (8) | |
Ownership interest in associates | 29.12% | 29.19% | |
Adjusting item | |||
Disclosure of joint operations [line items] | |||
Share of post-tax results of associates and joint ventures | £ 15 | £ 62 |
Adjusting items included in t_2
Adjusting items included in taxation (Details) - GBP (£) £ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Adjusting Items Included in Taxation [Abstract] | ||
Tax on adjusting items | £ 8 | £ (105) |
Impact of tax rate changes on deferred tax balances | £ 10 | £ 6 |
Cash flow - schedule of cash fl
Cash flow - schedule of cash flows from operating activities (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Disclosure Of Cash Flow [Abstract] | |||
Profit for the period | £ 4,035 | £ 1,938 | £ 6,846 |
Taxation on ordinary activities | 1,268 | 1,123 | 2,478 |
Share of post-tax results of associates and joint ventures | (289) | (200) | (442) |
Net finance costs | 921 | 817 | 1,641 |
Profit from Operations | 5,935 | 3,678 | 10,523 |
Adjustments for: | |||
– depreciation, amortisation and impairment costs | 480 | 659 | 1,305 |
– increase in inventories | (357) | (437) | (246) |
– (increase)/decrease in trade and other receivables | (425) | 41 | (42) |
– decrease in Master Settlement Agreement payable | (897) | (859) | (145) |
– increase/(decrease) in trade and other payables | 347 | (84) | 3 |
– decrease in retirement benefit liabilities | (55) | (56) | (110) |
– (decrease)/increase in other provisions for liabilities | (535) | 399 | 643 |
– other non-cash items | 29 | 989 | 606 |
Cash generated from operating activities | 4,522 | 4,330 | 12,537 |
Dividends received from associates | 202 | 171 | 394 |
Tax paid | (1,349) | (1,280) | (2,537) |
Net cash generated from operating activities | £ 3,375 | £ 3,221 | £ 10,394 |
Cash flow - additional informat
Cash flow - additional information (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Disclosure Of Cash Flow [Line Items] | ||||
Increase in net cash generated from operating activities | £ 154 | |||
Payments of litigation claim settlements | 179 | £ 31 | ||
Research and development expense | 194 | 150 | ||
Net cash used in investing activities | (41) | 208 | £ 705 | |
Increase in net cash used in investing activities | 249 | |||
Purchase of short term investment products, including treasury bills | 110 | (93) | ||
Purchase of property, plant and equipment, classified as investing activities | 110 | 99 | 523 | |
Purchases of property, plant, equipment and intangibles | £ 130 | 138 | ||
Decrease in purchases of property plant and equipment and intangibles | 5.90% | |||
Net cash generated in financing activities | £ 3,023 | 2,389 | 8,878 | |
Outflow due to dividend payment | 2,479 | 2,476 | 4,915 | |
Interest paid, classified as financing activities | 855 | 746 | 1,578 | |
Net inflow (outflow) from borrowings | 1,004 | 2,075 | ||
(Outflows)/inflows relating to derivative financial instruments | (429) | 253 | (117) | |
Purchases of own shares | £ 0 | £ 1,256 | £ 2,012 | |
Forecast | ||||
Disclosure Of Cash Flow [Line Items] | ||||
Purchases of property, plant, equipment and intangibles | £ 550 |
Liquidity - additional informat
Liquidity - additional information (Details) € in Millions, £ in Millions, $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||
May 31, 2023 USD ($) | Mar. 31, 2023 GBP (£) extensionOption | Feb. 28, 2023 USD ($) | Jan. 31, 2023 EUR (€) | Jun. 30, 2023 GBP (£) | Jun. 30, 2022 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2022 USD ($) | |
Disclosure Of Financial Instruments [Line Items] | ||||||||
Ratio of floating rate borrowings after impact of derivatives | 0.14 | 0.19 | 0.12 | 0.12 | ||||
Ratio of fixed rate borrowings after impact of derivatives | 0.86 | 0.81 | 0.88 | 0.88 | ||||
Ratio on net debt basis of floating rate borrowings after offsetting liquid assets | 0.05 | 0.10 | 0.03 | 0.03 | ||||
Ratio on net debt basis of fixed rate borrowings after offsetting liquid assets | 0.95 | 0.90 | 0.97 | 0.97 | ||||
Ratio of floating rate borrowings, excluding cash and other liquid assets in Canada | 0.09 | 0.13 | 0.07 | 0.07 | ||||
Ratio of fixed rate borrowings, excluding cash and other liquid assets in Canada | 0.91 | 0.87 | 0.93 | 0.93 | ||||
Liquidity risk | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Target average centrally managed bond maturity | 5 years | |||||||
Average centrally managed debt maturity of bonds | 9 years 6 months | 10 years 1 month 6 days | 9 years 10 months 24 days | |||||
Peak maturity of centrally managed debt maturing in a rolling 12-month period | 1,850% | 18.30% | 18.60% | 18.60% | ||||
Borrowing capacity under US commercial paper programme | $ | $ 4,000 | |||||||
Borrowing capacity under Euro commercial paper programme | £ 3,000 | |||||||
Commercial paper outstanding | 269 | £ 727 | £ 27 | |||||
Borrowings capacity | 5,500 | |||||||
Issuance of bond | $ | $ 800 | |||||||
Repayments of bonds at maturity | $ 48 | € 750 | ||||||
Liquidity risk | Between March 2022 to March 2023 | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Revolving credit facility | £ 2,500 | |||||||
Liquidity risk | Until March 2025 | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Revolving credit facility | 3,000 | |||||||
Liquidity risk | Between March 2025 to March 2026 | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Revolving credit facility | 2,500 | |||||||
Liquidity risk | Not later than 2 years | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Borrowings | 4,000 | |||||||
Liquidity risk | 364-day tranches | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Revolving credit facility | £ 2,700 | |||||||
Period of tranche | 364 days | |||||||
Extension options | extensionOption | 2 | |||||||
Extension period | 1 year | |||||||
Term out period | 1 year | |||||||
Liquidity risk | 5-year tranche | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Period of tranche | 5 years | |||||||
Liquidity risk | 5-year tranche | Between March 2026 to March 2027 | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Revolving credit facility | £ 2,850 | |||||||
Liquidity risk | Bilateral facilities | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Short term borrowing capacity | 2,900 | |||||||
Bilateral facility withdrawn and outstanding | 1,500 | |||||||
Undrawn borrowing facilities | £ 1,400 | |||||||
Liquidity risk | Fixed rate | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Target for floating to fixed rate debt | 50% | |||||||
Liquidity risk | Top of range | ||||||||
Disclosure Of Financial Instruments [Line Items] | ||||||||
Target centrally managed debt maturing in a rolling 12-month period | 20% |
Fair value measurements and v_3
Fair value measurements and valuation processes - additional information (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
At fair value | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Borrowings | £ 36,945 | £ 37,170 | £ 39,491 |
Level 1 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets at fair value | 361 | 514 | 506 |
Level 3 | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets at fair value | £ 200 | £ 186 | £ 120 |
Fair value measurements and v_4
Fair value measurements and valuation processes - summary of assets and liabilities measured at fair value (Details) - Level 2 - GBP (£) £ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets at fair value | £ 545 | £ 561 | £ 506 |
Liabilities at fair value | 681 | 929 | 929 |
– interest rate swaps | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 6 | 43 | 12 |
Liabilities | 398 | 450 | 303 |
– cross-currency swaps | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 234 | 254 | 227 |
Liabilities | 75 | 121 | 114 |
– forward foreign currency contracts | |||
Disclosure Of Fair Value Measurement Of Assets And Liabilities [Line Items] | |||
Assets | 305 | 264 | 267 |
Liabilities | £ 208 | £ 358 | £ 512 |
Earnings per share - summary of
Earnings per share - summary of reconciliation of earnings used to calculate earnings per share (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Earnings per share [abstract] | |||
Earnings attributable to owners of the parent | £ 3,959 | £ 1,859 | £ 6,666 |
Coupon on perpetual hybrid bonds | (29) | (29) | (60) |
Tax on coupon on perpetual hybrid bonds | 7 | 6 | 11 |
Earnings | £ 3,937 | £ 1,836 | £ 6,617 |
Earnings per share - additional
Earnings per share - additional information (Details) - GBP (£) £ / shares in Units, £ in Millions | 6 Months Ended | 12 Months Ended | ||
Feb. 11, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Earnings Per Share [Line Items] | ||||
Increase in basic earnings per share | 117% | |||
Basic (in GBP per share) | £ 1.766 | £ 0.812 | £ 2.933 | |
Increase in adjusted diluted earnings per share | 8.50% | |||
Adjusted diluted earnings per share (in GBP per share) | £ 1.816 | 1.674 | 3.714 | |
Increase in adjusted diluted earnings per share at constant rates of exchange | 5.30% | |||
Adjusted diluted earnings per share translated at 2022 exchange rates (in GBP per share) | £ 1.763 | £ 1.674 | £ 3.714 | |
Coupon on perpetual hybrid bonds net of tax | £ 22 | £ 23 | ||
Authorised share buy-back programme amount | £ 2,000 | |||
Repurchase of ordinary shares (in shares) | 37,657,945 | 59,541,862 | ||
Retained earnings | ||||
Earnings Per Share [Line Items] | ||||
Value of shares acquired | £ 1,300 |
Earnings per share - summary _2
Earnings per share - summary of earnings per share calculations (Details) - GBP (£) £ / shares in Units, £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Earnings per share [abstract] | |||
Earnings per share - basic, Earnings | £ 3,937 | £ 1,836 | £ 6,617 |
Earnings per share - diluted, Earnings | 3,937 | 1,836 | 6,617 |
Adjusted earnings per share - basic, Earnings | 4,062 | 3,806 | 8,420 |
Adjusted earnings per share - diluted, Earnings | 4,062 | 3,806 | 8,420 |
Headline basic earnings per share, Earnings | 3,980 | 2,968 | 7,499 |
Headline diluted earnings per share, Earnings | £ 3,980 | £ 2,968 | £ 7,499 |
Earnings per share - basic (in shares) | 2,229,000,000 | 2,262,000,000 | 2,256,000,000 |
Earnings per share - diluted (in shares) | 2,237,000,000 | 2,273,000,000 | 2,267,000,000 |
Adjusted earnings per share - basic (in shares) | 2,229,000,000 | 2,262,000,000 | 2,256,000,000 |
Adjusted earnings per share - diluted (in shares) | 2,237,000,000 | 2,273,000,000 | 2,267,000,000 |
Headline earnings per share - basic (in shares) | 2,229,000,000 | 2,262,000,000 | 2,256,000,000 |
Headline earnings per share - diluted (in shares) | 2,237,000,000 | 2,273,000,000 | 2,267,000,000 |
Earnings per share, basic (in GBP per share) | £ 1.766 | £ 0.812 | £ 2.933 |
Earnings per share - diluted (in GBP per share) | 1.760 | 0.808 | 2.919 |
Adjusted earnings per share - basic (in GBP per share) | 1.822 | 1.683 | 3.732 |
Adjusted earnings per share - diluted (in GBP per share) | 1.816 | 1.674 | 3.714 |
Headline earnings per share - basic (in GBP per share) | 1.786 | 1.312 | 3.324 |
Headline earnings per share - diluted (in GBP per share) | £ 1.779 | £ 1.306 | £ 3.308 |
Earnings per share - summary _3
Earnings per share - summary of adjusted diluted earnings per share (Details) - £ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Adjusted Earnings Per Share [Abstract] | |||
Earnings per share - diluted (in GBP per share) | £ 1.760 | £ 0.808 | £ 2.919 |
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles (in GBP per share) | 0.036 | 0.055 | 0.096 |
Effect of Brazil VAT case (in GBP per share) | (0.053) | 0 | (0.171) |
Effect of disposal of subsidiaries (in GBP per share) | 0 | 0 | (0.003) |
Effect of impairment on held-for-sale assets and associated costs (in GBP per share) | 0.007 | 0.420 | 0.264 |
Effect of charges in respect of DOJ and OFAC investigations (in GBP per share) | 0.030 | 0 | 0.199 |
Effect of charges in respect of Nigerian FCCPC case (in GBP per share) | 0 | 0 | 0.035 |
Effect of restructuring and integration costs (in GBP per share) | 0 | 0.127 | 0.289 |
Effect of other adjusting items (in GBP per share) | 0.019 | 0.219 | 0.052 |
Effect of adjusting items in net finance costs (in GBP per share) | 0.006 | 0.015 | 0.012 |
Effect of associates adjusting items (in GBP per share) | 0.007 | 0.027 | 0.041 |
Effect of adjusting items in respect of deferred taxation (in GBP per share) | 0.004 | 0.003 | (0.019) |
Adjusted diluted earnings per share (in GBP per share) | 1.816 | 1.674 | 3.714 |
Impact of translational foreign exchange (in GBP per share) | (0.053) | 0 | 0 |
Adjusted diluted earnings per share translated at 2022 exchange rates (in GBP per share) | £ 1.763 | £ 1.674 | £ 3.714 |
Earnings per share - summary _4
Earnings per share - summary of diluted headline earnings per share (Details) - £ / shares | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Earnings per share [abstract] | |||
Earnings per share - diluted (in GBP per share) | £ 1.760 | £ 0.808 | £ 2.919 |
Effect of impairment of intangibles property plant and equipment associates and held for sale assets (net of tax) (in GBP per share) | 0.030 | 0.088 | 0.155 |
Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) (in GBP per share) | (0.004) | (0.001) | (0.007) |
Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) (in GBP per share) | 0 | 0.409 | 0.237 |
Effect of foreign exchange reclassification from reserves to the income statement (in GBP per share) | 0 | 0.006 | 0.003 |
Issue of shares and change in shareholding of an associate (in GBP per share) | (0.007) | (0.004) | 0.001 |
Diluted headline earnings per share (in GBP per share) | £ 1.779 | £ 1.306 | £ 3.308 |
Earnings per share - summary _5
Earnings per share - summary of reconciliation of earnings to headline earnings (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Earnings per share [abstract] | |||
Earnings | £ 3,937 | £ 1,836 | £ 6,617 |
Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax) | 68 | 199 | 352 |
Effect of losses on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax) | (8) | (2) | (16) |
Effect of impairment of subsidiaries transferred to held-for-sale (net of tax) | 1 | (929) | (538) |
Effect of foreign exchange reclassification from reserves to the income statement | 0 | (14) | (5) |
Issue of shares and change in shareholding of an associate | (16) | (8) | 3 |
Headline earnings | £ 3,980 | £ 2,968 | £ 7,499 |
Contingent liabilities and fi_2
Contingent liabilities and financial commitments - additional information (Details) € in Millions, $ in Millions, $ in Millions | 6 Months Ended | 12 Months Ended | 24 Months Ended | 30 Months Ended | ||||||||||||||||||||
Feb. 10, 2023 | Dec. 11, 2019 GBP (£) | Dec. 11, 2019 USD ($) | Mar. 08, 2019 GBP (£) | Mar. 08, 2019 CAD ($) | Jan. 31, 2019 GBP (£) | Jan. 31, 2019 CAD ($) | Feb. 10, 2017 GBP (£) | Feb. 10, 2017 USD ($) | Jun. 30, 2023 GBP (£) Employee province ACTION Plaintiff Case | Jun. 30, 2023 CAD ($) Plaintiff Employee ACTION | Jun. 30, 2023 USD ($) Plaintiff Employee ACTION | Dec. 31, 2022 GBP (£) Case | Dec. 31, 2022 USD ($) Case | Dec. 31, 2009 GBP (£) | Dec. 31, 2009 EUR (€) | Dec. 31, 2017 GBP (£) | Dec. 31, 2017 CAD ($) | Jun. 30, 2023 GBP (£) province Case | Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) province Case | Jun. 30, 2022 GBP (£) | Mar. 01, 2019 GBP (£) | Mar. 01, 2019 CAD ($) | |
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Canada provinces | province | 10 | 10 | 10 | |||||||||||||||||||||
Canada provinces for which damages are quantified | province | 5 | 5 | 5 | |||||||||||||||||||||
Employees charged with corruption | Employee | 2 | 2 | 2 | |||||||||||||||||||||
Fox River | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Environmental clean up costs paid by related party | £ 4,000,000 | |||||||||||||||||||||||
Fox River provision | 50,000,000 | £ 54,000,000 | £ 50,000,000 | £ 59,000,000 | ||||||||||||||||||||
Sequana | Fox River | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Payments received from Sequana | £ 0 | |||||||||||||||||||||||
Windward dividend claim | Fox River | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Dividend paid | £ 115,800,000 | € 135 | ||||||||||||||||||||||
Windward dividend claim | Windward | Fox River | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation settlement amount | £ 145,500,000 | $ 185 | ||||||||||||||||||||||
Compensatory damages awarded | Engle progeny cases | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation expense included in other operating expense | 46,000,000 | $ 58.3 | ||||||||||||||||||||||
Punitive damages awarded | Engle progeny cases | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Litigation expense included in other operating expense | £ 18,000,000 | $ 23.1 | ||||||||||||||||||||||
DOJ and OFAC | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
DPA period | 3 years | 3 years | 3 years | |||||||||||||||||||||
Other payables | $ | $ 635 | |||||||||||||||||||||||
Competition investigations | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Penalty due | £ 86,500,000 | $ 110 | ||||||||||||||||||||||
Monitorship period | 2 years | 2 years | 2 years | |||||||||||||||||||||
Kalamazoo river | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Payments on remediation work | £ 204,000,000 | $ 245 | ||||||||||||||||||||||
Kalamazoo river | N C R | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Recovery percentage | 60% | |||||||||||||||||||||||
Kalamazoo river | N C R | Georgia Pacific | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Payment of outstanding judgment | £ 16,600,000 | $ 20 | ||||||||||||||||||||||
Netherlands | Tax reassessment | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Tax assessment | £ 936,000,000 | |||||||||||||||||||||||
Canada | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Number of actions in lawsuit | ACTION | 10 | 10 | 10 | |||||||||||||||||||||
Canada | Imperial Tobacco Canada Ltd | Quebec class actions | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Settlement payments | £ 451,000,000 | $ 758 | ||||||||||||||||||||||
Canada | Bottom of range | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought | £ 5,900,000,000 | $ 10,000 | ||||||||||||||||||||||
Canada | Top of range | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought | 70,000,000,000 | 118,000 | ||||||||||||||||||||||
Canada | Top of range | Imperial Tobacco Canada Ltd | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Settlement proceeds from judgement | £ 5,500,000,000 | $ 9,200 | ||||||||||||||||||||||
Ontario | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought | £ 196,000,000,000 | $ 330,000 | ||||||||||||||||||||||
Ontario | Bottom of range | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought | £ 5,600,000,000 | $ 9,400 | £ 166,000,000,000 | $ 280,000 | ||||||||||||||||||||
Ontario | Top of range | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Damages sought | £ 6,500,000,000 | $ 10,900 | £ 374,000,000,000 | $ 630,000 | ||||||||||||||||||||
US - Engle | Engle progeny cases | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Total number of cases | Case | 521 | 521 | 521 | |||||||||||||||||||||
Number of plaintiffs | Plaintiff | 642 | 642 | 642 | |||||||||||||||||||||
US - Engle | RJRT or Lorillard Inc | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Number of paid judgements cases | Case | 4 | 4 | ||||||||||||||||||||||
Payment for compensatory and punitive damages | £ 19,700,000 | $ 25 | ||||||||||||||||||||||
Florida | Engle progeny cases | ||||||||||||||||||||||||
Disclosure Of Commitments And Contingencies [Line Items] | ||||||||||||||||||||||||
Total bond cap | £ 157,000,000 | $ 200 |
Franked Investment Income Gro_2
Franked Investment Income Group Litigation order - additional information (Details) - FII GLO £ in Millions | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 GBP (£) CorporateGroup | Jun. 30, 2022 GBP (£) | Dec. 31, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | Dec. 31, 2020 trial | Dec. 31, 2015 GBP (£) payment | |
Gains Losses On Litigation Settlements [Line Items] | ||||||
Number of corporate groups in FII GLO | CorporateGroup | 17 | |||||
Number of trials | trial | 2 | |||||
Litigation settlement amount, applying prudential judgement | £ 300 | |||||
Litigation settlement amount received | £ 1,200 | |||||
Number of payments | payment | 2 | |||||
Tax amount on litigation settlement deduction amount | £ 300 | |||||
Litigation settlement amount received after tax | £ 900 | |||||
Interest related to FII GLO | £ 13 | £ 28 | ||||
Settlement payments | £ 50 |
Retirement benefit schemes - ad
Retirement benefit schemes - additional information (Details) - GBP (£) £ in Millions | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | |
Disclosure of defined benefit plans [abstract] | |||
Percentage of principal schemes to total defined benefit schemes | 90% | ||
Percentage of defined benefit net costs charged to the adjusted profit | 70% | ||
Frequency of valuations | 3 years | ||
Net asset and (liability) for pension and healthcare schemes | £ 146 | £ 51 | £ 111 |
Post balance sheet event (Detai
Post balance sheet event (Details) | Jul. 24, 2023 |
Forecast | Demerger under scheme of arrangement | ITC Ltd. | |
Disclosure of non-adjusting events after reporting period [line items] | |
Proportion of ownership interest in subsidiary | 60% |
Summarised financial informat_3
Summarised financial information - additional information (Details) - USD ($) $ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jul. 01, 2022 | Jun. 30, 2022 | Jul. 17, 2019 |
Reynolds American Inc. | |||||
Disclosure Of Summarised Financial Information [Line Items] | |||||
Unsecured notes | $ 7,700 | $ 7,700 | $ 7,700 | ||
Outstanding long-term debt | 10% | ||||
Lorillard Inc | |||||
Disclosure Of Summarised Financial Information [Line Items] | |||||
Unsecured notes | $ 22.1 | $ 40.9 | $ 40.9 | ||
Registered BATCAP bonds in connection with the acquisition of RAI | Reynolds American Inc. | |||||
Disclosure Of Summarised Financial Information [Line Items] | |||||
Bonds Issued, registered portion | 11,000 | ||||
Registered BATCAP bonds in connection with shelf registration | |||||
Disclosure Of Summarised Financial Information [Line Items] | |||||
Bonds and notes | $ 600 | $ 12,150 | |||
Registered BATIF bonds in connection with shelf registration | |||||
Disclosure Of Summarised Financial Information [Line Items] | |||||
Bonds and notes | $ 2,500 |
Summarised financial informat_4
Summarised financial information - summarised financial information of income statement (Details) - GBP (£) £ in Millions | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | ||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | [1] | £ 13,441 | £ 12,869 | £ 27,655 |
(Loss)/profit from operations | 5,935 | 3,678 | 10,523 | |
Net finance income/(costs) | (921) | (817) | (1,641) | |
Profit before taxation | 5,303 | 3,061 | 9,324 | |
Taxation on ordinary activities | (1,268) | (1,123) | (2,478) | |
Profit for the period | 4,035 | 1,938 | £ 6,846 | |
Registered BATCAP bonds | BAT p.l.c. | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | (521) | (5) | ||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 244 | 113 | ||
Profit before taxation | (277) | 108 | ||
Taxation on ordinary activities | 0 | 0 | ||
Profit for the period | (277) | 108 | ||
Registered BATCAP bonds | BATCAP | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | 0 | 0 | ||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | (96) | (29) | ||
Profit before taxation | (96) | (29) | ||
Taxation on ordinary activities | (2) | (19) | ||
Profit for the period | (98) | (48) | ||
Registered BATCAP bonds | BATIF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | (1) | 0 | ||
Dividend income | 1 | 0 | ||
Net finance income/(costs) | 567 | (118) | ||
Profit before taxation | 567 | (118) | ||
Taxation on ordinary activities | 7 | 2 | ||
Profit for the period | 574 | (116) | ||
Registered BATCAP bonds | BATNF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | 0 | 0 | ||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 0 | 0 | ||
Profit before taxation | 0 | 0 | ||
Taxation on ordinary activities | 0 | 0 | ||
Profit for the period | 0 | 0 | ||
Registered BATCAP bonds | RAI | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | 15 | 8 | ||
Dividend income | 2,276 | 2,014 | ||
Net finance income/(costs) | (267) | (227) | ||
Profit before taxation | 2,024 | 1,795 | ||
Taxation on ordinary activities | 64 | 51 | ||
Profit for the period | 2,088 | 1,846 | ||
Registered BATCAP bonds | BATHTN | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Revenue | 0 | 0 | ||
(Loss)/profit from operations | 4 | 1 | ||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 0 | 0 | ||
Profit before taxation | 4 | 1 | ||
Taxation on ordinary activities | (1) | (1) | ||
Profit for the period | 3 | 0 | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BAT p.l.c. | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 144 | 11 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | (513) | (5) | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATCAP | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 267 | 381 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | 0 | 0 | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATIF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 1 | 0 | ||
Net finance income/(costs) | 802 | 136 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | (8) | 0 | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATNF | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 7 | 0 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | 0 | 0 | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | RAI | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 2,276 | 2,014 | ||
Net finance income/(costs) | 60 | 14 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | 25 | 26 | ||
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATHTN | ||||
Disclosure Of Summarised Financial Information [Line Items] | ||||
Dividend income | 0 | 0 | ||
Net finance income/(costs) | 0 | 0 | ||
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income | £ 3 | £ 0 | ||
[1]Revenue is net of duty, excise and other taxes of £18,721 million and £18,190 million for the six months ended 30 June 2023 and 30 June 2022, respectively, and £38,527 million for the year ended 31 December 2022 |
Summarised financial informat_5
Summarised financial information - summarised financial information of balance sheet (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Balance Sheet | |||
Non-current assets | £ 130,980 | £ 138,137 | £ 137,162 |
Current assets | 15,092 | 15,409 | 14,709 |
Non-current liabilities | 57,253 | 59,983 | 61,076 |
Non-current borrowings | 37,140 | 38,726 | 39,724 |
Current liabilities | 16,191 | 17,853 | 16,726 |
Current borrowings | 5,029 | 4,413 | £ 5,151 |
Registered BATCAP bonds | BAT p.l.c. | |||
Balance Sheet | |||
Non-current assets | 1,917 | 1,917 | |
Current assets | 6,926 | 9,166 | |
Non-current liabilities | 1,580 | 1,580 | |
Non-current borrowings | 1,571 | 1,572 | |
Other non-current liabilities | 9 | 8 | |
Current liabilities | 575 | 55 | |
Current borrowings | 32 | 23 | |
Other current liabilities | 543 | 32 | |
Registered BATCAP bonds | BATCAP | |||
Balance Sheet | |||
Non-current assets | 19,834 | 20,962 | |
Current assets | 9,278 | 7,947 | |
Non-current liabilities | 18,960 | 20,018 | |
Non-current borrowings | 18,727 | 19,762 | |
Other non-current liabilities | 233 | 256 | |
Current liabilities | 10,092 | 8,749 | |
Current borrowings | 10,023 | 8,657 | |
Other current liabilities | 69 | 92 | |
Registered BATCAP bonds | BATIF | |||
Balance Sheet | |||
Non-current assets | 2,425 | 2,480 | |
Current assets | 42,637 | 42,748 | |
Non-current liabilities | 13,863 | 14,058 | |
Non-current borrowings | 13,392 | 13,510 | |
Other non-current liabilities | 470 | 548 | |
Current liabilities | 28,811 | 29,379 | |
Current borrowings | 28,277 | 28,525 | |
Other current liabilities | 534 | 854 | |
Registered BATCAP bonds | BATNF | |||
Balance Sheet | |||
Non-current assets | 2,135 | 1,500 | |
Current assets | 32 | 22 | |
Non-current liabilities | 2,135 | 1,500 | |
Non-current borrowings | 2,135 | 1,500 | |
Other non-current liabilities | 0 | 0 | |
Current liabilities | 31 | 21 | |
Current borrowings | 31 | 21 | |
Other current liabilities | 0 | 0 | |
Registered BATCAP bonds | RAI | |||
Balance Sheet | |||
Non-current assets | 335 | 405 | |
Current assets | 1,050 | 1,135 | |
Non-current liabilities | 9,396 | 10,094 | |
Non-current borrowings | 9,349 | 10,033 | |
Other non-current liabilities | 47 | 61 | |
Current liabilities | 1,225 | 1,011 | |
Current borrowings | 650 | 568 | |
Other current liabilities | 575 | 443 | |
Registered BATCAP bonds | BATHTN | |||
Balance Sheet | |||
Non-current assets | 47 | 45 | |
Current assets | 10 | 8 | |
Non-current liabilities | 12 | 12 | |
Non-current borrowings | 0 | 0 | |
Other non-current liabilities | 12 | 12 | |
Current liabilities | 3 | 1 | |
Current borrowings | 2 | 1 | |
Other current liabilities | 1 | 0 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BAT p.l.c. | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 6,835 | 9,117 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 6 | 5 | |
Investment in subsidiaries (that are not issuers or guarantors) | 27,234 | 27,234 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATCAP | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 16,171 | 17,003 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 2,988 | 3,890 | |
Investment in subsidiaries (that are not issuers or guarantors) | 0 | 0 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATIF | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 42,313 | 42,752 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 22,608 | 22,702 | |
Investment in subsidiaries (that are not issuers or guarantors) | 718 | 718 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATNF | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 0 | 0 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 0 | 0 | |
Investment in subsidiaries (that are not issuers or guarantors) | 0 | 0 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | RAI | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 662 | 700 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 36 | 34 | |
Investment in subsidiaries (that are not issuers or guarantors) | 25,253 | 26,690 | |
Registered BATCAP bonds | Transactions with non-issuer/non-guarantor subsidiaries | BATHTN | |||
Intercompany transactions - Balance Sheet | |||
Amounts due from non-issuer/non-guarantor subsidiaries | 9 | 8 | |
Amounts due to non-issuer/non-guarantor subsidiaries | 2 | 1 | |
Investment in subsidiaries (that are not issuers or guarantors) | £ 1,522 | £ 1,573 |
Perpetual hybrid bonds - additi
Perpetual hybrid bonds - additional details (Details) € in Billions | 12 Months Ended | ||||
Dec. 31, 2021 EUR (€) Bond | Jun. 30, 2023 GBP (£) | Dec. 31, 2022 GBP (£) | Jun. 30, 2022 GBP (£) | Dec. 31, 2021 GBP (£) | |
Share capital | £ 614,000,000 | £ 614,000,000 | £ 614,000,000 | ||
Perpetual hybrid bonds | 1,685,000,000 | 1,685,000,000 | 1,685,000,000 | ||
BAT p.l.c. | |||||
Number of perpetual hybrid bonds issued | Bond | 2 | ||||
Perpetual hybrid bonds | € | € 1 | ||||
Contractual obligation | £ 0 | ||||
Share capital | 614,000,000 | 614,000,000 | 614,000,000 | ||
Perpetual hybrid bonds | 1,685,000,000 | 1,685,000,000 | 1,685,000,000 | ||
Share premium | 112,000,000 | 113,000,000 | 112,000,000 | ||
Other Equity | £ 31,511,000,000 | £ 34,270,000,000 | £ 29,956,000,000 |
Perpetual hybrid bonds - disclo
Perpetual hybrid bonds - disclosure of unconsolidated contribution to consolidated equity results (Details) - GBP (£) £ in Millions | Jun. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2022 |
Equity – capital and reserves | |||
Share capital | £ 614 | £ 614 | £ 614 |
Perpetual hybrid bonds | 1,685 | 1,685 | 1,685 |
BAT p.l.c. | |||
Equity – capital and reserves | |||
Share capital | 614 | 614 | 614 |
Share premium | 112 | 113 | 112 |
Perpetual hybrid bonds | 1,685 | 1,685 | 1,685 |
Other Equity | £ 31,511 | £ 34,270 | £ 29,956 |