Russia Exit Hits BAT Profits

Industry Insight
Jul.28.2022

BAT took a £957 million ($1.15 billion) impairment charge related to the transfer of its Russian business, lowering its half-year earnings by a quarter.

Russia Exit Hits BAT Profits

The London-based firm, which controlled almost a fourth of the Russian market, said earlier this year that it was in advanced talks with its distributor in the country to sell the business in the wake of Russia’s invasion of Ukraine.

 

BAT reported a 25 percent drop in profit from operations on a reported basis to £3.68 billion for the six months to June 30 as a result of the charge. The company expects global tobacco industry volume to be down about 3 percent, partly because of the Russia-Ukraine crisis.

 

In a press release announcing the half-year results, BAT emphasized the growth of its New Categories products and the performance of its combustible business, which continues to grow value share enabled by robust pricing.

 

“I am very proud that our continued New Categories growth momentum is driving faster transformation, with revenue growth of 45 percent in the first half of 2022, on top of 51 percent growth in fiscal year 2021,” said BAT CEO Jack Bowles. “I am especially proud that the number of consumers using our noncombustible brands has passed the milestone of 20 million in the first half.”

 

Noncombustible products now represent 14.6 percent of BAT’s revenue.

 

While acknowledging the geopolitical and macroeconomic challenges, Bowles was upbeat about the outlook for BAT.

 

“We are not immune, of course, to the increasing macroeconomic pressures, exacerbated by the conflict in Ukraine,” he said. “However, we are well positioned to navigate the current turbulent environment due to our powerful brands, operational agility and continued strong cash generation.”

 

The content excerpted or reproduced in this article comes from a third-party, and the copyright belongs to the original media and author. If any infringement is found, please contact us to delete it. Any entity or individual wishing to forward the information, please contact the author and refrain from forwarding directly from here.

Cambodia Moves to Draft New Tobacco Control Strategy Targeting Illicit Products and E-Cigarette Spread
Cambodia Moves to Draft New Tobacco Control Strategy Targeting Illicit Products and E-Cigarette Spread
Cambodian Health Minister Cheang Ra has called for the development of a tobacco control strategy for 2027–2031, with the goal of reducing tobacco use by 30% by 2030. The directive was issued during a Tobacco Product Control Committee meeting in Phnom Penh. Priority areas include reducing tobacco use, protecting the public from secondhand smoke, tackling illegal and counterfeit tobacco products, and preventing the spread of e-cigarettes.
Apr.29 by 2FIRSTS.ai
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
FDA Expands ENDS Market Access With First Authorization of Non-Tobacco and Non-Menthol Products
The U.S. Food and Drug Administration (FDA) announced on May 5, 2026 that it authorized the marketing of four Glas electronic nicotine delivery system (ENDS) products through the premarket tobacco product application (PMTA) pathway. The authorized products are Classic Menthol, Fresh Menthol, Gold and Sapphire pods, each containing 50mg/ml, or 5%, tobacco-derived nicotine.
May.06 by 2FIRSTS.ai
Russian Vape GOST Revision Would Limit Capacity, Packaging Design and Warning Labels
Russian Vape GOST Revision Would Limit Capacity, Packaging Design and Warning Labels
Russia is preparing changes to its e-cigarette state standard GOST R 58109–2018. Under a draft order submitted to Rosstandart, the shelf life of vape devices and liquids would be limited to no more than two years, and capacity would be strictly capped at 2 mL for replaceable capsules, 10 mL for disposable systems and 30 mL for refill containers.
Apr.27 by 2FIRSTS.ai
Reuters Exclusive: FDA’s Fast-Track Review of Nicotine Pouches Slows Over Youth and New-User Concerns
Reuters Exclusive: FDA’s Fast-Track Review of Nicotine Pouches Slows Over Youth and New-User Concerns
Reuters reported on April 1 that several popular nicotine pouch products still have not been cleared for sale in the United States despite a fast-track review pilot run by the U.S. Food and Drug Administration. Three sources said FDA reviewers have taken a cautious approach because of potential risks to youth and other non-tobacco users, including the possibility of driving nicotine addiction among adults who do not already smoke.
Apr.02 by 2FIRSTS.ai
Argentina’s New Nicotine Rules Draw Cautious Optimism and Market Concerns, Local Tobacco Harm Reduction Advocate Says
Argentina’s New Nicotine Rules Draw Cautious Optimism and Market Concerns, Local Tobacco Harm Reduction Advocate Says
Argentina’s new tobacco and nicotine framework marks a shift from prohibition toward registration, traceability and health surveillance. Argentine THR advocate Juan Facundo Teme told 2Firsts that adult consumers and parts of the local commercial sector are cautiously optimistic, but concerns remain over flavor limits, registration costs and market access. The policy’s implementation may determine whether Argentina can move informal sales into regulated channels.
May.11
FDA Filing Shows RIF Notices for 229 CTP Employees Were Largely Rescinded
FDA Filing Shows RIF Notices for 229 CTP Employees Were Largely Rescinded
A court declaration signed by FDA official Melanie M. Keller on March 24, 2026 detailed the status of previously issued reduction-in-force notices affecting employees at the Center for Tobacco Products (CTP).
Apr.01 by 2FIRSTS.ai