British American Tobacco (BAT) has published a glossary of financial terms on its website, defining key metrics such as 'adjusted earnings' and 'adjusted profit from operations' as profit figures that exclude adjusting items like restructuring costs and amortisation of trademarks. The company states that these non-GAAP measures are used to provide an understanding of the Group's underlying financial performance.
The glossary, released on April 15, 2026, clarifies that adjusting items are significant items in profit from operations, net finance costs, taxation, and the Group's share of post-tax results of associates and joint ventures. These items are separately disclosed to aid investors in assessing the Group's core earnings. BAT notes that while IFRS does not require such disclosure, the company uses these adjusted measures internally and in external reporting.
This publication comes as BAT continues its transformation towards a 'smokeless world' under its 'A Better Tomorrow' strategy, which involves significant restructuring and investment in reduced-risk products. The definition of adjusted earnings is particularly relevant for investors tracking the company's financial performance amid ongoing costs related to acquisitions, integration, and brand amortisation. The glossary also includes definitions for alternative cash flow, adjusted diluted earnings per share, and other terms commonly used in BAT's financial reports.