British American Tobacco

Manufacturer of tobacco products and devices for heating tobacco glo. 

Aktivs

At the beginning of 2018:

• 44 factories in 42 countries producing cigarettes and other tobacco products.
• Brands are sold in more than 200 markets, we make the cigarette chosen by around 1 in 8 of the world’s one billion adult smokers.
• Cooperation with 90 thousand independent farmers around the world.

History

2023: $31.5 billion write-off due to failed company purchases

On December 6, 2023, the British tobacco concern British American Tobacco, which owns brands such as Dunhill, Kent, Lucky Strike, Pall Mall and Rothmans, announced a write-off of £25 billion (approximately $31.5 billion at the exchange rate as of this date). Losses are primarily associated with the depreciation of a number of American assets.

It is noted that macroeconomic difficulties and the crisis in the United States have a negative impact on business. Against the background of high inflation, smokers are switching to cheaper brands of cigarettes. In addition, unsuccessful acquisitions of other tobacco manufacturers led to financial losses.

British American Tobacco announces £25bn write-off

The accounting adjustment primarily applies to some of the traditional tobacco product brands we acquired in the United States, as we now estimate their book value and useful economic life over an estimated period of 30 years. From January 2024, depreciation of the remaining value of brands will begin, British American Tobacco said in a statement.

The concern is implementing a comprehensive transformation program aimed at creating a predominantly "smokeless business." In particular, British American Tobacco is expected to receive up to half of all revenue from sales of e-cigarettes and other similar products by 2035. According to the company, by the end of 2023, only about 10% of 1 billion smokers worldwide use non-combustible tobacco products, and therefore the growth potential in the relevant area remains high.

British American Tobacco emphasizes that macroeconomic challenges continue to have a negative impact on the company's sales in the American market. In addition, the illegal distribution of disposable vapes leads to a decrease in demand for traditional tobacco products.^[1]

2022: Loss of $1.2 billion due to withdrawal from the Russian market during the conflict in Ukraine

In July 2022, cigarette manufacturer British American Tobacco estimated a loss of $1.2 billion due to leaving the Russian Federation during the conflict in Ukraine.

2016: The company's 665 billion cigarettes sold

The company's 665 billion cigarettes were sold in 2016.