Future Of British Business
BAT Writing Off £25 Billion on US Cigarettes, Shares Fall
- BAT shares fall most since 2020 on disappointing update
- BAT sees ‘low-single-digit’ revenue and profit growth in 2024
BAT’s US cigarette business has struggled as consumers look for cheaper or less harmful alternatives.
Photographer: Chris Goodney/BloombergThis article is for subscribers only.
British American Tobacco Plc is writing down some of its US cigarette brands by about £25 billion ($31.5 billion), sending shares to the biggest decline in almost four years.
The maker of Lucky Strikes is taking the non-cash impairment to reflect the diminishing carrying value of the brands over the next 30 years as more smokers quit, switch to cheaper brands or adopt smoking alternatives.