BAT announces update on Russian operations and revised guidance.

Apr.08.2022
BAT to transfer Russia business, revise 2022 guidance due to ongoing Ukraine-Russia conflict and complex environment.

The British American Tobacco company ("the company")

 

At BAT, we take pride in our values and spirit. As a company, we stand united in urging all leaders and governments to use the power of dialogue and diplomacy to find peaceful and sustainable solutions to this tragic conflict.

 

Following our announcement on March 9th, 2022, we have now concluded our review of our presence in Russia. The context was highly complex, unusually fast-paced, and unstable.

 

Our conclusion is that, under the current circumstances, the ownership of BAT's business in Russia is no longer sustainable.

 

Today, we have commenced the process of transferring our Russian operations in full compliance with international and local laws. In addition to continuing to pay the salaries of our 2500 employees, we will also do our utmost to ensure their future employment security.

 

After completion, the best tax benefit will no longer be available for personnel stationed in Russia.

 

In light of the ongoing uncertainty between Ukraine and Russia and the potential indirect impact on other members of our group, we have decided to revise our full-year 2022 guidance. We now anticipate a 2% to 4% increase in Revenue for our Constant Currency Group and a moderate dilution of earnings per share growth. In 2021, Ukraine and Russia accounted for 3% of our group's revenue, and their proportion in adjusted operating profits was slightly lower. We believe this cautious approach is warranted given the circumstances.

 

P. McCrory, the company secretary of BAT, announced the news.

 

Original article link:

 

BAT: Russia business updates and revised guidelines.

 


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