The maker of Lucky Strike and Pall Mall cigarettes says its smoking business in the US is dying out.
British American Tobacco (BAT) wrote off £25bn ($31.5bn) in value due to the changed outlook for brands such as Newport and Camel.
The move cut the brands’ worth by more than a third, and sent the company’s share price down more than 8%.
The move cut the brands’ worth by more than a third, and sent the company’s share price down more than 8%.
Demand for its brands has also dropped as buyers squeezed by higher prices prioritise other purchases or opt for cheaper packs.
BAT has been trying to re-ignite growth with vaping products. It hopes to have 50% of its revenue from “non-combustible” products by 2035.
It said it now considered that its US cigarette brands had a useful economic life of 30 years, rather than an indefinite one.
The write-down is the first such acknowledgment by a major tobacco firm of the sea change hitting the industry.
In a trading update, chief executive Tadeu Marroco said the move was “accounting catching up with reality”.
The maker of Lucky Strike and Pall Mall cigarettes says its smoking business in the US is dying out.
The move cut the brands’ worth by more than a third, and sent the company’s share price down more than 8%.
British American Tobacco (BAT) wrote off £25bn ($31.5bn) in value due to the changed outlook for brands such as Newport and Camel.
Demand for its brands has also dropped as buyers squeezed by higher prices prioritise other purchases or opt for cheaper packs.
The move cut the brands’ worth by more than a third, and sent the company’s share price down more than 8%.
The move cut the brands’ worth by more than a third, and sent the company’s share price down more than 8%.
Demand for its brands has also dropped as buyers squeezed by higher prices prioritise other purchases or opt for cheaper packs.
BAT has been trying to re-ignite growth with vaping products. It hopes to have 50% of its revenue from “non-combustible” products by 2035.
It said it now considered that its US cigarette brands had a useful economic life of 30 years, rather than an indefinite one.
The write-down is the first such acknowledgment by a major tobacco firm of the sea change hitting the industry.
In a trading update, chief executive Tadeu Marroco said the move was “accounting catching up with reality”.
#Tobacco #giant #sees #sunset #cigarette #business
Note:- (Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor. The content is auto-generated from a syndicated feed.))
