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.

SICPA Secures Five-Year UK Vape Tax Stamp Contract
SICPA Secures Five-Year UK Vape Tax Stamp Contract
HM Revenue and Customs (HMRC) has awarded a five-year contract to Swiss technology company SICPA and Cartor Security Printers to implement the United Kingdom’s new vaping duty stamp and track-and-trace system, beginning in April 2026.
Market
Feb.24
Russia’s Volgograd fines retailer 300,000 rubles for unlabelled nicotine products, orders confiscation and destruction
Russia’s Volgograd fines retailer 300,000 rubles for unlabelled nicotine products, orders confiscation and destruction
Volgograd, Russia say a retailer was caught selling unlabelled nicotine products, including electronic nicotine delivery devices flagged in the national “Honest Sign” tracking system as already withdrawn from circulation. A local court fined the entrepreneur 300,000 rubles and ordered 41 confiscated items to be destroyed, with the decision now in effect.
Feb.05 by 2FIRSTS.ai
Philip Morris Korea launches TEREA “Shine Pearl” for IQOS ILUMA, expands capsule range to seven variants
Philip Morris Korea launches TEREA “Shine Pearl” for IQOS ILUMA, expands capsule range to seven variants
Philip Morris Korea said on Feb. 5 it has introduced “TEREA Shine Pearl,” a new TEREA stick designed for the IQOS ILUMA heated-tobacco device. The company said the product delivers a cool sensation and adds a fresh, fruity note when the capsule is crushed, bringing TEREA’s capsule-based lineup in South Korea to seven variants.
Feb.05 by 2FIRSTS.ai
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
Can hookah go institutional? A hookah company seeking to go public makes its case with capital, technology and regulation
2Firsts explored whether hookah can evolve into a more mature and governable category by interviewing Dubai-based hookah company AIR. AIR argues that strong margins, OOKA’s closed-system model and the prospect of differentiated regulation could support that shift. The larger question is whether this is simply AIR’s capital-markets narrative, or an early sign that competition, regulation and category boundaries in hookah are beginning to change.
Apr.02
Casey’s, the No. 3 U.S. C-Store Chain, Sees Nicotine Category Shift as Pouches Rise 31% and Vapor 12%
Casey’s, the No. 3 U.S. C-Store Chain, Sees Nicotine Category Shift as Pouches Rise 31% and Vapor 12%
Casey’s General Stores (NASDAQ: CASY) reported accelerating growth in modern nicotine products during its fiscal third quarter ended January 31, 2026. Nicotine pouch sales increased 31% year over year, while vapor products rose 12%. Although cigarette unit sales continued to decline, management stated that the rate of decline slowed compared to prior quarters.
Market
Mar.15
Breaking: Smoore Shares Fall More Than 16% Intraday in Morning Trade After Results Release, Investor Presentation
Breaking: Smoore Shares Fall More Than 16% Intraday in Morning Trade After Results Release, Investor Presentation
Smoore International (6969.HK) released its 2025 results on March 17 and held an investor presentation on the morning of March 18. In morning trade on March 18, the company’s shares fell more than 16% intraday, hitting a low of HK$9.94.
Mar.18 by 2FIRSTS.ai