Our CEO Jack Bows informed analysts and investors this week that BAT is entering the next stage of its transformation journey towards a brighter future, with faster transitions.
February 25, 2022
Jack gave a speech at the annual Consumer Analyst Group of New York (CAGNY) conference, one of the leading consumer product conferences in the United States that takes place almost every year.
He informed the audience that BAT had successfully navigated a crucial year in 2021 and how we have established high-growth new category businesses worth over 2 billion pounds in just a few years. He noted that over the past three years, revenue for the best combustible products doubled and accounted for over 12% of the group's total revenue.
Jack stated that as we continue to encourage more smokers to switch to our low-risk*† products, the new category's contribution to the group's income will continue to grow, and is expected to more than double by 2025, increasing from £2 billion to £5 billion.
During the meeting, it was reported that the contribution of new categories to the company's profit growth is expected to accelerate as we continue to expand our scale and reduce losses. Through our new and more proactive capital allocation framework, we are committed to delivering higher long-term value for our shareholders.
Jack also pointed out that BAT's new category revenue increased by 51% in 2021. Additionally, we have added a record-breaking 4.8 million non-combustible product consumers, bringing the total to 18.3 million.
Jack stated that with their diverse strategy and investment portfolio, they are in a unique position to drive industry transformation by reducing the impact of their business on health. This is the core of their strategy and a deeply rooted commitment to society.
Kingsley Wheaton, Chief Marketing Officer of BAT, and Tadeu Marroco, Director of Finance and Transformation, also spoke at the meeting.
Kingsley discussed BAT's distinctive multi-category model, which is led by our three new global driving brands Vuse, glo, and VELO. He also highlighted the scientific basis behind these products and how accelerating our ESG performance remains a key focus.
He said, "We are leveraging our established strengths, new capabilities, and global innovation to drive our brand and transform our business. This transition is progressing smoothly.
Tadeu shared with the conference that BAT's crucial year was how to achieve strong results in 2021, driven by unique consumer insights, powerful branding, mature capabilities, and our excellent workforce. We are rapidly evolving towards this goal.
He added, "We are committed to transforming the best available technology into a high-growth, diversified, consumer-driven company, reducing our impact on public health, and placing ESG at the core to create value for all our stakeholders.
Original article link:
Jack Dorsey, the CEO of BAT, announces the company is entering the next stage of its transformation.
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