Tag: British American Tobacco

‘BAT Unlikely to Buy Back Russian Assets’

Image: Framestock
British American Tobacco is unlikely to exercise its option to buy back its Russian assets, given the perceived risk of investing in Russia, reports Interfax.
Following the 2022 invasion of Ukraine, many Western-headquartered firms pulled out of Russia. BAT sold its assets in Russia and Belarus to a consortium led by local management. The sale included an option to buy back the assets within two years.
After the transaction, the assets were renamed ITMS Group. As of September 2023, ITMs was owned by BFI Holding of the United Arab Emirates, according to Russia’s Unified State Register of Legal Entities.
BAT’s retreat from Russia depressed the company’s 2023 results. BAT reported revenue of £27.28 billion ($34.38 billion) a loss of £15.75 billion on Feb. 8, and attributed the declines over 2022 in part to the loss of its Russian business and its decision to write-down of the value of several U.S. cigarette brands to reflect the dimming prospects for combustible products.
BFI Holding is owned by Faruk Yener, Oleg Barvin, Elena Zavarzina, Andrey Osavolyuk and Sergey Kudinov. Yener was general director of BAT for Russia, Turkey, the Caucasus, Central Asia and Belarus, while Barvin headed the company’s legal department.
ITMS posted revenues in 2022 of RUB42.74 billion ($467.34 million) versus RUB38.94 billion in 2021, while net profit was RUB2.21 billion versus RUB1.73 million, respectively.
February 9, 2024
Write-Down Weighs on Results

Photo: BAT
British American Tobacco reported a loss of £15.75 billion for 2023. The company’s results were heavily impacted by its decision last year to write down the value of some its traditional cigarette brands in the United States to reflect the diminishing outlook for combustible tobacco products.
Revenue was £27.28 billion, dragged by the sale of its businesses in Russia and Belarus, foreign-exchange pressures and lower cigarette volumes, and partially offset by the increased new categories revenue, according to The Wall Street Journal.
Revenue from ‘new categories’ rose to £3.35 billion, up 21 percent from 2022 on an organic basis.
“2023 was another year of resilient financial performance and delivery in line with our guidance, underpinned by our global footprint and multi-category strategy, despite a challenging macro-environment, said BAT CEO Tadeu Marroco in a statement.
“New categories delivered continued volume-led revenue growth and increased profitability, driven by Vuse and Velo. As a result, our new categories portfolio has turned profitable two years ahead of our original target.
“In combustibles, our commercial plans in the U.S. are enabling early signs of portfolio recovery.” The company’s Africa and Middle East business performed well in 2023, as did BAT’s Asia Pacific/Middle East/Africa region, according to Marroco, who credited strong revenue and profit performance, along with a well-balanced portfolio.

2023 was another year of resilient financial performance and delivery in line with our guidance, underpinned by our global footprint and multi-category strategy, despite a challenging macro-environment.
Tadeu Marroco, CEO, BAT
During the presentation of BAT’s results, Marocco also suggested the company would sell some it shareholding in ITC, the Indian consumer goods giant that makes much of its revenue from cigarettes but also runs hotels and a paper business, among other operations.
Such a sale would allow BAT to pay down debt and accelerate toward the leverage range at which it could resume the share buybacks that some investors have been pressing for. BAT owns approximately one-third of ITC and would need to retain 25 percent to keep its veto rights.
In related news, BAT announced that it has submitted an modified risk tobacco product application to the U.S. Food and Drug Administration to make certain health claims about its Glo Hyper Pro tobacco heating device, which the company launched in Japan, Italy and Poland earlier this year.
February 8, 2024
BAT Makes Board and Committee Changes

Photo: BAT
Sue Farr and Dimitri Panayotopoulos will step down from BAT’s board at the end of the company’s annual general meeting on April 24, 2024, having served as nonexecutive directors for nine years.
As a result of these departures, BAT is changing the role of senior independent director and the composition of the audit and remuneration committees.
After the conclusion of the company’s annual general meeting, Holly Keller Koeppel will be appointed as senior independent director, succeeding Farr. Koeppel has been a nonexecutive director of the company since July 2017, and she is currently chair of the audit committee and a member of the nominations committee. Darrell Thomas will be appointed as chair of the audit committee, succeeding Koeppel, who will remain a member of the audit committee. Kandy Anand will be appointed as chair of the remuneration committee, succeeding Panayotopoulos.
Luc Jobin said, “I would like to thank both Sue and Dimitri for their extensive contribution to the board over their tenures. I would also like to thank Holly for chairing the Audit Committee since 2019. I look forward to welcoming Holly, Darrell and Kandy to their new roles.”
The above proposals are subject to reelection of each of the directors at the 2024 annual general meeting.
February 6, 2024
BAT Nigeria Celebrates Factory Anniversary

From left to right: Chief Kola Karim, chairman of the BAT Nigeria (BATN) advisory board; Odiri Erewa-Meggison, director, external affairs for BAT’s West, and Central Africa business; and Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa. (Photo: BAT Nigeria)
British American Tobacco Nigeria is celebrating the 20^th anniversary of its Ibadan factory. Established in 2003, the Ibadan factory has been a cornerstone of BAT Nigeria’s operations in West and Central Africa, enabling exports to 11 countries in the West and Central Africa region, and recently exporting to the U.S.
“Two decades ago, we embarked on a journey to establish a world-class manufacturing facility in Nigeria, and today, we are proud to celebrate the Ibadan factory as a shining example of our commitment to excellence and sustainability in Nigeria,” said Yarub Al-Bahrani, managing director at BAT Nigeria and West and Central Africa.
“The factory has played a pivotal role in our success, contributing significantly to the Nigerian economy, creating employment opportunities across the value chain, and promoting environmental stewardship”, he added.
The Ibadan factory has implemented a comprehensive environmental management system, incorporating stringent measures to reduce its carbon footprint. According to BAT, these efforts have resulted in significant reductions in energy consumption, water usage and waste generation.
On Feb. 6, Ibadan will unveil its 1.4MWP grid-tied solar panel system. Its advocacy for water stewardship has been recognized with various certifications, including the prestigious Alliance for Water Stewardship core certification.
Speaking on the factory’s milestone, BAT’s director of external affairs for West and Central Africa, Odiri Erewa-Meggison, asserted that BAT Nigeria has remained steadfast in its commitment to driving ‘A Better Tomorrow,’ [the company’s corporate slogan] while prioritizing safety, sustainability and responsible business practices.
“The Ibadan factory is not just a manufacturing facility; it is an integral part of the Nigerian community and we are continuously committed to making a positive impact on the lives of those around us,” she said.
Erewa-Meggison stated that the anniversary celebration will serve as a tribute to the accomplishments and successes of the factory. “This is an opportunity to acknowledge the dedication and hard work of all employees, partners and stakeholders who have played a vital role in shaping our growth and journey,” she added. “We look forward to celebrating more milestones and positive contributions of the factory.”
February 5, 2024
PMI and BAT Settle Patent Disputes

Photo: ASDF
Philip Morris International and British American Tobacco have settled their ongoing intellectual property disputes relating to heated tobacco and vapor products.
The cigarette makers had been fighting a multi-front patent battle. BAT, which makes Vuse vapes and Glo heated tobacco devices, was ordered to pay PMI millions of dollars after losing one case, while PMI has been blocked from importing its flagship heated tobacco device IQOS into the United States as part of another.
The settlement includes non-monetary provisions between PMI and BAT that resolve all ongoing global patent infringement litigation, encompassing all related injunctions and exclusion orders, and prevents future claims against current heated tobacco and vapor products. The settlement also allows each party to innovate and introduce product iterations.
“We are pleased that this matter has been resolved to the mutual satisfaction of both parties,” said PMI CEO Jacek Olczak in a statement. “There is a clear and growing global desire from adults who smoke to choose from a range of smoke-free products, and we believe continued reduced-risk category innovation can accelerate declines in the harms associated with smoking to the benefit of consumers and public health at large as we continue PMI’s journey to end the sale of cigarettes.”
“This agreement is an important step forward for BAT and all our stakeholders,” said BAT CEO Tadeu Marroco in a statement. “Having already built two £1 billion [$1.28 billion] brands in Vuse and Glo, the potential for their continued impact on tobacco harm reduction is clear. I am delighted that this settlement will allow BAT to focus on developing innovative solutions that provide adult consumers with a greater choice of reduced risk products in support of our ‘A Better Tomorrow’ purpose. By doing so, we will help build a smokeless world for the benefit of consumers, investors and society as a whole.”
February 2, 2024
Song Young-jae to Lead BAT Korea

British American Tobacco has appointed Song Young-jae as its new country manager in Korea, reports The Korea Herald.
A marketing and finance expert, Song will be tasked with promoting BAT’s combustible products.
“Song is an expert in the global tobacco industry and the right person to spearhead the company’s future innovation,” a company official was quoted as saying.
A graduate from the London School of Economics and Political Science, Song started his career at the BAT headquarters in London in 2008. In 2010, Song moved to BAT’s Netherlands office, where he nurtured his specialty in marketing and finance.
Following a first stint at BAT’s Korean unit between 2014 and 2020, Song was appointed general director of the BAT-Vinataba joint venture in Vietnam.
“I feel heavy responsibility taking the country manager post at BAT Rothmans amid the rapidly changing market environment,” Song said. “I will introduce innovative and sustainable business strategies so that BAT Rothmans can lead the market in the future and solidify its status in the global tobacco industry.”
February 2, 2024
Glo Hyper Pro Launched

Image: BAT
BAT has launched a new version of its Glo heating device. Glo is an alternative to smoking that doesn’t involve burning, producing fewer and lower levels of toxicants than conventional cigarettes.
The Glo Hyper Pro device is lightweight, fits easily in consumers’ pockets and comes with improvements in performance, according to the company. With this new device, one charge takes approximately 90 minutes and lasts all day. Once charged, consumers can expect to use the device for 20 sessions in total.
“We’re proud that today, over 8.8 million adult consumers now use Glo,” said Kingsley Wheaton, chief strategy and growth officer at BAT, in a statement. “This latest version is our most advanced yet, with a much improved user experience. We continue to listen to consumers and enhance our products so that they find Glo a satisfying alternative to continuing to smoke. Ultimately, BAT aims to support smokers to switch to these reduced-risk products in order to deliver benefits for consumers, society and our stakeholders.”
The wider Glo range is sold in over 20 markets around the world. The Glo Hyper Pro device has been launched in Japan, Italy and Poland, with further global market rollouts planned during 2024.
January 10, 2024
Former BAT Russia Subsidiary Renamed

Image: Patcharida
BAT’s former Russian subsidiary in St. Petersburg has been renamed ITMS following the change in ownership, reports AB News.
Last year, BAT announced problems with its Russian business and its intention to leave the Russian market following Russia’s invasion of Ukraine.
The Russian and Belarusian businesses of BAT were acquired by a consortium led by BAT Russia’s management team.
January 9, 2024
BAT Nigeria Pays Anti-Competition Fine

Image: Maksym Kapliuk
British American Tobacco has settled a $110 million fine imposed for abusing its market dominance in Nigeria, reports The Leadership.
In Dec. 30 statement, BAT’s external affairs director for west and central Africa, Odiri Erewa-Meggison, said the penalty pertained to an investigation previously disclosed by the company in its 2022 annual report and updated in its half-year report for June 30, 2023.
Nigeria’s Federal Competition & Consumer Protection Commission (FCCPC) started investigating BAT in 2020 and obtained a federal court order to search multiple BAT sites and those of service providers for evidence used in a forensic analysis.
Among other transgressions, BAT had penalized retailers for providing equal platforms for its competitors’ products, according to the FCCPC.
The competition watchdog will monitor BAT for 24 months to ensure appropriate behavior and business practice consistent with prevailing competition laws and tobacco control efforts.
The fine, which is not eligible for appeal, is the highest ever levied by the Nigerian competition commission.
Erewa-Meggison further acknowledged the monitorship and awareness campaigns stipulated in the consent order, confirming that BAT Nigeria has fully cooperated with the FCCPC’s appointed service providers.
December 31, 2023
BAT Nigeria Fined for Dominance Abuse

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British American Tobacco Nigeria has been fined $110 million fine following allegations of market dominance abuse and infringement of public health regulations, reports Reuters.
The Federal Competition & Consumer Protection Commission (FCCPC) said BAT had also penalized retailers for providing equal platforms for its competitors’ products.
The fine, which is not eligible for appeal, is the highest ever levied by the Nigerian competition commission.
The FCCPC started investigating BAT in 2020 and obtained a federal court order to search multiple BAT sites and those of service providers for evidence used in a forensic analysis.
The competition watchdog will monitor BAT for 24 months to ensure appropriate behavior and business practice consistent with prevailing competition laws and tobacco control efforts, the FCCPC wrote on X.
“In exchange for BAT parties fulfilling their obligations under the consent order, the commission withdrew pending criminal charges against BAT Nigeria and at least one employee with respect to obstructing the commission,” the FCCPC wrote.
December 28, 2023