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Tag: British American Tobacco

  • BAT Reaffirms FY26 Guidance at Low End of Target

    BAT Reaffirms FY26 Guidance at Low End of Target

    British American Tobacco reaffirmed its full-year 2026 guidance with its presentation at the Consumer Analyst Group of New York Conference today (Feb. 18), signaling results will land at the lower end of its previously issued targets. BAT CEO Tadeu Marroco and Reynolds American President David Waterfieldhe said the group expects constant-currency revenue growth of 3–5%, adjusted profit from operations growth of 4–6% (adjusted for Canada and weighted toward the second half) and adjusted diluted EPS growth of 5–8%. BAT said its smokeless portfolio — including Vuse, glo and Velo — reached more than 31 million adult consumers globally by the end of 2025, contributing 18.2% of its £25.6 billion annual revenue. The company is targeting 50 million smokeless consumers by 2030 and aims for these products to generate half of group revenue by 2035, as it continues its transition toward reduced-risk categories.

    “We are committed to actively encouraging adult smokers, who would otherwise choose to continue to smoke, to make a full switch to smokeless alternatives,” Marroco said. “Regulation is not homogeneous globally. This affects not only which products are legally available for consumers, but also communication freedoms and excise levels.

    “BAT has taken a consumer-led, multi-category approach from the outset.  While initially more complex and costly to execute, it has proven to be the right strategy. Together with leveraging our brand building expertise, and global distribution reach, this enables us to maximize our opportunity – to switch smokers who would otherwise choose to continue to smoke, drive harm reduction, and create value.”

  • U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    A potential U.S. ban on imports of certain disposable e-cigarettes could reduce illegal vape sales by as much as one-third, according to British American Tobacco CEO Tadeu Marroco. BAT estimates unauthorized products, largely manufactured in China, account for roughly 70% of U.S. e-cigarette sales, undermining both regulated vape brands and traditional cigarette businesses. The company is pursuing two cases before the U.S. International Trade Commission (ITC) seeking to block imports of products that infringe its patents. An ITC judge previously recommended an exclusion order, with a final decision expected in March, followed by a 60-day presidential review.

    “What we want to see in the US is a level playing field because in a level playing field, we know that we can win,” Marroco said.

    Marroco cautioned that any market impact would likely be delayed due to existing supply chains and inventory levels, suggesting significant effects may not occur until 2027. He also indicated that the U.S. Food and Drug Administration could consider alternative regulatory approaches for e-cigarettes, potentially including flavored products, as the agency evaluates ways to streamline product authorization processes.

  • BAT Signals Possible Job Cuts from AI Plan

    BAT Signals Possible Job Cuts from AI Plan

    British American Tobacco signaled potential job cuts as part of a new artificial intelligence-driven productivity initiative, while reporting higher annual profits fueled by strong performance from its Velo nicotine pouch. Interim finance chief Javed Iqbal said the program will focus on automation, data analytics, and operational simplification, though the extent of workforce reductions remains unclear. BAT reported adjusted earnings per share growth of 3.4%, with newer product revenue rising 7% for the year and reaching 18.2% of total sales. Velo has gained traction in the United States, becoming the second-largest nicotine pouch brand by market share behind Philip Morris International’s Zyn, supported by competitive pricing and higher nicotine strength offerings.

    Despite momentum in smoke-free products, BAT continues to face regulatory and market headwinds, according to Reuters. The company said illicit vape products are weighing on Vuse performance, with U.S. vape sales expected to remain flat in 2026. Additionally, higher tobacco duties and expanding illicit trade in Australia, along with tax and pricing regulations in Bangladesh, contributed to a more than 7% decline in revenue across BAT’s Asia-Pacific, Middle East, and Africa region, limiting overall group revenue growth to 2.1% in 2025.

  • BAT Closure Leading S. Africa to ‘Warehouse Economy’

    BAT Closure Leading S. Africa to ‘Warehouse Economy’

    The South African Federation of Trade Unions (SAFTU) warned that South Africa is sliding toward a “warehouse economy” following British American Tobacco’s decision to shut its Heidelberg manufacturing plant and shift to imports. SAFTU General Secretary Zwelinzima Vavi said the closure would cost around 200 direct jobs and thousands more indirectly, arguing it reflects a broader pattern of deindustrialization as multinational companies scale back local production.

    SAFTU urged Parliament to halt the Tobacco Control Bill in its current form, warning it could further weaken legal tobacco manufacturers while strengthening illicit trade, which Vavi said already accounts for roughly 75% of cigarette sales. BAT cited rampant illegal cigarettes as a key factor behind the closure, noting that illicit trade has weighed on its South African operations and financial performance. SAFTU is calling for a full socioeconomic impact assessment of the bill, while BAT has pushed for stronger enforcement and a minimum retail price to curb illegal sales.

  • BAT CEO Talks Investment in Italy

    BAT CEO Talks Investment in Italy

    British American Tobacco CEO Tadeu Marroco was recently in Rome meeting with stakeholders, and spoke with Milano Finanza about how the company views Italy as a strategically important market, citing its stable regulatory and taxation framework, strong supplier base, and growing adoption of next-generation products, which now account for around 45% of BAT’s Italian revenue compared with 18% globally.

    “Italy represents one of the most strategic markets for BAT and [is] one of the countries in which the group can concretely realize its vision for the future,” he said. “From Italy, we continue to buy tobacco up to 15 thousand tons, which will be purchased in the three-year period 2026-2028, supporting over 400 small and medium-sized enterprises that employ 6,000 people.”

    Marroco said BAT is reinforcing its European innovation and production footprint through its Trieste Innovation Hub, where the company is investing €500 million through 2027 to expand non-combustible product manufacturing. The facility is expected to reach full capacity with 16 production lines and generate employment growth linked to BAT’s broader supply chain investments, including continued tobacco sourcing agreements supporting domestic agriculture and SMEs. The company maintains its target of deriving 50% of global revenue from smoke-free products by 2035, while also navigating regulatory complexity and illicit market growth in key regions, which BAT argues can hinder innovation and undermine public health and fiscal outcomes.

  • BAT to Shut Down Only South African Plant

    BAT to Shut Down Only South African Plant

    BAT South Africa (BATSA) announced it will cease local production of factory-manufactured cigarettes and close its sole manufacturing facility in Heidelberg, Gauteng, by the end of 2026, citing the overwhelming growth of illicit cigarettes in the market. The company estimates that illegal products now account for about 75% of cigarette sales in South Africa, rendering local manufacturing commercially unviable. The plant is currently operating at just 35% of capacity due to sustained volume losses linked to the illicit trade.

    “We have tried everything to ensure we don’t have to close this facility, which has been a part of the Heidelberg community since 1975, including implementing various efficiency initiatives over the years,” said Johnny Moloto, head of corporate and regulatory affairs at BAT Sub-Saharan Africa.  “But when three-quarters of your market is illicit, there’s a limit to what any company can do. We’ve reached that limit.”

    BATSA said the closure will directly affect approximately 230 employees and their families and will also have knock-on effects across the local value chain, including suppliers, logistics providers, and contractors in the Lesedi community. The company has initiated a formal consultation process with employees and unions in line with labor law and expects this process to conclude by the end of March 2026, ahead of the full shutdown later in the year. Despite the closure, BATSA stressed it is not exiting South Africa and will transition to an import-based supply model to continue serving adult consumers.

    The company said it has spent more than a decade engaging with government and law-enforcement authorities, warning that policy decisions such as the 2020 tobacco sales ban, above-inflation excise increases, and proposed new tobacco legislation have widened the gap between legal and illegal products. BATSA argued that enforcement efforts have been insufficient to protect legitimate businesses and jobs, with illicit cigarettes costing an estimated R28 billion ($1.7 billion) a year in lost tax revenue. BATSA also warned that illicit trade is increasingly affecting other sectors, including alcohol, pharmaceuticals, and consumer goods.

    The growth of illicit trade accelerated after a Covid-era ban on tobacco sales in 2020, from which BATSA says the legal market never recovered. BATSA said it could reconsider local manufacturing if there is sustained progress in curbing illicit trade but cautioned that proposed new tobacco legislation and rising excise duties risk further worsening the problem.

  • BAT to Cut 59% of Jobs from Belgium Facility

    BAT to Cut 59% of Jobs from Belgium Facility

    Yesterday morning (January 14) at a special works council meeting, BAT Belgium announced plans to cut up to 51 of its 87 jobs at its Groot-Bijgaarden facility as part of a proposed restructuring driven by mounting regulatory and economic pressures, according to Retail Detail. The company said it has initiated a collective redundancy procedure, with 48 of the 74 roles in its commercial unit and three of 13 positions in other departments potentially affected, subject to consultations with social partners.

    According to BAT, increasing regulation, bans on certain nicotine products, rising excise duties, and the expansion of the illegal tobacco market have led to a sustained erosion of revenue and weighed heavily on business performance. The company said the restructuring aims to create a more efficient and agile organization in response to these challenges.

  • British American Tobacco Share Buyback Update

    British American Tobacco Share Buyback Update

    According to Tip Ranks, British American Tobacco repurchased 146,615 of its ordinary shares yesterday (January 5) under its shareholder-approved buyback program, paying a volume-weighted average price of 4,101.38 pence per share. The company plans to cancel the repurchased shares, reducing its outstanding ordinary shares with voting rights to 2,179,187,085 while maintaining 132,988,352 shares in treasury. The move is expected to slightly enhance earnings per share and signals continued capital return discipline to shareholders.

  • Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya’s Court of Appeal temporarily halted the defamation case filed by National Assembly Speaker Moses Wetang’ula against the BBC, which he accused of defaming him in the 2015 documentary Panorama: The Secret Bribes of Big Tobacco. Wetang’ula seeks damages and costs over allegations that British American Tobacco bribed him while he served as Bungoma Senator.

    The BBC argued that continuing the High Court case would undermine its appeal and block access to crucial evidence from UK courts. Wetang’ula opposed the request, calling it procedurally flawed and delayed.

    The appellate court agreed the BBC raised an arguable point, noting the delay was not excessive and emphasizing the constitutional right to a fair trial. It granted the stay, pausing the High Court proceedings until the appeal is resolved, with costs to follow the outcome.

  • BAT Malaysia Adjusts Prices, Eyes Market Stability

    BAT Malaysia Adjusts Prices, Eyes Market Stability

    British American Tobacco (Malaysia) Bhd announced new cigarette prices ranging from RM12.40 to RM18.40 per pack, effective November 21, following the government’s Budget 2026 excise duty increase. The move, approved by the Ministry of Health, marks the first excise adjustment in a decade and comes at a critical time for the company’s market positioning.

    BAT Malaysia managing director Nedal Salem said the moderate increase was a “step in the right direction” given Malaysia’s economic environment, but warned that steep hikes in the past have fueled the tobacco black market, which now accounts for 54% of total cigarette consumption. With illicit trade eroding legitimate sales, BAT Malaysia’s ability to maintain market share hinges on balancing affordability with regulatory compliance.

    Industry analysts note that while higher prices could pressure consumer demand, BAT Malaysia stands to benefit from stronger enforcement against contraband. Government crackdowns saved RM15.5 billion ($3.7 billion) in lost revenue over the past two years, and a new RM700 million ($168 million) allocation for enforcement in 2026 is expected to further curb illegal trade. Salem emphasized that BAT Malaysia fully supports these initiatives, positioning the company to protect its sales base and stabilize market share despite the excise-driven price adjustment.