Japan Tobacco Inc. announced that its consolidated subsidiary, JT International Holding B.V., approved a surplus dividend distribution of JPY 74.4 billion ($470 million) at a board meeting held on May 18, with payment expected on May 20. The dividend will be recorded as non-operating income in JT’s standalone financial statements for fiscal 2026; however, because the payment originates from a consolidated subsidiary, the company stated that it will not have a material impact on JT’s consolidated financial results for the year.
Category: Business & Finance
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BATB Sales Choked by Taxes, Illicits
British American Tobacco Bangladesh reported a sharp downturn in first-quarter FY2025-26 performance as higher tobacco taxes, consumer downtrading, and rising competition from illicit cigarettes weighed heavily on sales. Domestic cigarette volumes fell 14% year-on-year, dragging gross revenue down 10.7% and net revenue down 21% as the effective tax burden climbed to 84.1%.
Industry estimates suggest illicit cigarettes now capture up to 18% of the market, intensifying pressure on compliant manufacturers. While gross margin improved to 56% on lower cost of sales, operating expenses surged more than 40%, and operating cash outflow widened amid rising inventories and higher short-term borrowing. Non-core revenue streams offered little support, with cigarette exports remaining at zero for a third straight quarter and leaf export volumes falling sharply.
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Cabbacis Talking Future at Sidoti Micro-Cap
Cabbacis announced that its CEO, Joseph Pandolfino, will present at the upcoming Sidoti Micro-Cap Virtual Conference, where he is scheduled to host virtual one-on-one meetings with institutional investors and deliver a live 30-minute webcast presentation on May 21 beginning at 10 a.m. ET. The appearance highlights investor interest in Cabbacis’ patented iBLEND risk-reduction tobacco products as the company advances development under its federally licensed manufacturing platform.
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Foreign Investors Increase Stakes as KT&G Posts Record Sales
KT&G is attracting renewed global investor interest after reporting record first-quarter overseas tobacco sales and continued strength in shareholder returns, according to The Korea Times. Earlier this month, Capital Group acquired a 5.61% stake in the company through its subsidiary, following a similar move in January by BlackRock, which built a position of more than 5%. Foreign investors have posted net purchases of KT&G shares for 22 consecutive trading days since April 9, lifting foreign ownership by nearly one percentage point, as investors increasingly view the stock as a value play supported by solid fundamentals and dividend policy rather than Korea’s semiconductor-heavy market trends.
KT&G’s share price climbed from the ₩140,000 ($92.40) range in January to around ₩180,000 ($118.80), supported by first-quarter sales of ₩1.7 trillion ($1.1 billion) and operating profit of ₩365 billion ($241 million), up 14.3% and 27.6% year-on-year, respectively. Overseas tobacco sales reached a record ₩560 billion ($370 million), with operating profit from global operations rising 56.1%. Having already met its ₩3.7 trillion ($2.4 billion) shareholder return target for 2024–2027, KT&G plans to announce a new return policy later this year and has pledged to cancel all treasury shares following revisions to Korea’s Commercial Act, moves that analysts say are reinforcing its appeal among long-term institutional investors.
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BAT Launching Digital and Technology Hub in India
British American Tobacco announced plans to open a new information, digital, and technology (IDT) hub in Fraser Town, Bengaluru, India, as part of efforts to strengthen its global technology footprint and accelerate its transformation into a more agile, data-driven business. The hub will house BAT’s newly created Future Capabilities Centre (FCC), designed to consolidate key digital, data, cybersecurity, artificial intelligence, and platform capabilities in one location to drive innovation and operational efficiency across the group.
The FCC will create a range of highly skilled roles and tap into Bengaluru’s technology ecosystem to support BAT’s global operations through advanced digital solutions and strategic partnerships. According to Javed Iqbal, BAT’s Interim Chief Financial Officer and Director for Digital and Information, the center will play a critical role in scaling innovation and embedding technology at the core of the company’s operations as it adapts to a rapidly evolving business environment.
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Bosnia, Industry Cracking Down on €500M Tobacco Black Market
Authorities and industry representatives in Bosnia and Herzegovina say the illegal tobacco trade is costing the country more than €500 million annually, as cigarettes without excise stamps and cross-border smuggling continue to undermine the legal market and public revenues. Officials from the Indirect Taxation Administration of Bosnia and Herzegovina and the Finance Ministry stressed that coordinated enforcement, stable excise policy, and cooperation with manufacturers such as British American Tobacco and Japan Tobacco International helped reverse a sharp market collapse seen around 2019–2020, when legal cigarette volumes fell from 12 billion to 3.5 billion sticks annually.
Authorities say improved policy alignment and citizen reporting through the “Stop Smuggling” campaign have since supported revenue recovery, while warning that the shadow market still distorts competition, drains budgets that fund public services, and complicates efforts to align with European regulatory standards.
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BAT Stock Surges, Despite Legacy Combustibles Shrinking
Shares of British American Tobacco climbed 13.99% in London trading last week to £48.64 on May 15, as investors reacted to a mix of regulatory, legal, and capital signals. Market attention followed the U.S. Food and Drug Administration authorization of flavored Glas ENDS products, seen as a reference point for how flavored e-cigarettes may fare under the PMTA pathway, even though the decision did not involve BAT’s Vuse brand. Sentiment was further supported after a U.S. court dismissed a sanctions-related criminal case tied to BAT’s prior North Korea compliance matter, confirming the company had fulfilled its deferred prosecution agreement, alongside continued focus on BAT’s planned £1.3 billion 2026 share buyback and growth prospects for its newer nicotine portfolio, including VELO.
In contrast, BAT Bangladesh reported a 14% year-on-year drop in cigarette volumes and a 34% decline in profit for Q1 2026 amid higher taxes, inflationary pressure, and weaker consumer purchasing power, underscoring the diverging performance between BAT’s legacy combustible markets and investor expectations tied to reduced-risk product expansion.
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AIR Begins Nasdaq Trading Following SPAC Merger
AIR Limited completed its business combination with Cantor Equity Partners III, resulting in the formation of AIR Global PLC, whose ordinary shares began trading on the Nasdaq Stock Market today (May 18), under the ticker symbol “AIIR.” The transaction, approved by CAEP shareholders on May 12, positions the Dubai-headquartered company known for its Al Fakher brand as the only publicly listed pure-play platform focused on flavored shisha molasses and hookah products. CEO Stuart Brazier said the listing provides access to U.S. capital markets to accelerate international expansion, particularly in AIR’s largest market, the United States, and highlights the global scalability of UAE-founded consumer businesses.
AIR said it will ring the Nasdaq Opening Bell on May 21 to mark the milestone. The company operates in more than 90 markets and cited industry estimates valuing the global flavored molasses and hookah ecosystem at $15–19 billion with projected mid-single-digit growth through 2030. As part of its growth strategy, AIR plans to open a 70,000-square-foot manufacturing facility in Romania by Q1 2027, expand recently acquired German brand NameLess into new markets, roll out its Crown Switch rechargeable pod system beyond Germany, and advance brand collaborations, including a premium flavor line with Snoop Dogg.
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VB Distribution Appoints New CEO
London-based VB Distribution (Vapes-Bars Ltd) appointed Natalia Gosciniak as Chief Executive Officer as part of an ongoing governance and corporate development program. Gosciniak, who has been involved in shaping the company’s strategic direction and governance framework, will oversee operations, organizational development, and commercial growth. She said the company is investing significantly in infrastructure and operations to support a more sustainable phase of expansion.
As part of the transition, founder Adam Matliwala will become chairman, focusing on strategic oversight and long-term business development. VB Distribution supplies supermarket, wholesale, convenience, and independent retail partners, reporting more than 50,000 retail shelf placements across the UK and an annual turnover approaching £500 million. The company said the leadership change supports broader governance enhancements tied to its long-term corporate and public market ambitions.
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Drew Estate Formalizes Innovation Department, Hires New Marketing VP
Drew Estate’s Jonathan Drew Sann announced he will be filling the company’s newly created position of Chief Innovation Officer, keeping his duties as president of the company but stepping away from his role heading the marketing department. He simultaneously announced the hiring of Andrew Duncan as senior vice president of marketing.
Sann said the company will now formally recognize an innovation department, which will focus on expanding the company’s business portfolio “around its core strengths in brand development, disruption, and consumer engagement.” The company cited recent initiatives, including the Drew Dominicana factory in the Dominican Republic and the J.Sann & Son retail division, as examples of projects emerging from this effort. CEO Glenn Wolfson said the move is intended to position Sann to focus on long-term strategic and cultural development for the company.
Duncan joins the company from The Sazerac Company, where he served as global head of brand marketing for the company’s bourbon and American whiskey portfolio, and previously held senior marketing roles at Procter & Gamble. At Drew Estate, Duncan will oversee brand management, consumer engagement, digital marketing, and global creative, and will work with Sann to support the commercialization of innovation initiatives.