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.

Imperial Brands Expects Low-Single-Digit Tobacco and NGP Net Revenue Growth in H1
Imperial Brands Expects Low-Single-Digit Tobacco and NGP Net Revenue Growth in H1
Imperial Brands released a trading update on April 14, reiterating its FY26 guidance and saying its 2030 transformation has started positively. The company said it still expects low-single-digit tobacco net revenue growth, double-digit NGP net revenue growth, 3.00% to 5.00% growth in Group adjusted operating profit, at least high-single-digit earnings per share growth, and at least GBP 2.2 billion in free cash flow for the full year.
Apr.14 by 2FIRSTS.ai
Special Report| War continues to shape the Ukrainian tobacco market
Special Report| War continues to shape the Ukrainian tobacco market
Four years into the war, Ukraine’s tobacco market is being reshaped by stress-driven consumption, tax pressure, youth e-cigarette use and a growing illicit segment. Surveys point to rising tobacco and nicotine product use, while higher excise duties and shadow trade are adding new complexity to the market.
Apr.17
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Announces Nationwide Retail Expansion of on! PLUS Nicotine Pouches
Altria Group, Inc. announced the nationwide retail expansion of on! PLUS nicotine pouches, a product manufactured by Helix Innovations LLC, an Altria operating company. The product had already been available through e-commerce and participating retailers in North Carolina, Florida and Texas, began wholesale deliveries on March 16, 2026, and is expected to reach participating retailers nationwide starting March 23, 2026.
Mar.24 by 2FIRSTS.ai
Virginia Attorney General Backs Vape Enforcement Act Limiting Sales to FDA-Authorized or Pending Products
Virginia Attorney General Backs Vape Enforcement Act Limiting Sales to FDA-Authorized or Pending Products
Virginia Attorney General Jay Jones is backing new vape enforcement legislation that he said would do more than warn people about the dangers of vaping. The proposal would tighten rules on which products can be sold and increase enforcement aimed at keeping vapes out of the hands of young people.
Mar.24 by 2FIRSTS.ai
Imperial Brands Launches 2ml+10ml blu MAX 6000 Vape System
Imperial Brands Launches 2ml+10ml blu MAX 6000 Vape System
mperial Brands has launched blu MAX 6000 in the UK, positioning the product as a higher-puff vape kit with longer-lasting use and replaceable pod+refill options. The device uses a 2ml+10ml click-on box format, with starter kits priced at £10.99 (approximately $14) and replacement pod+refill packs priced at £7.99 (approximately $10).
Market
May.19
UK Vape Waste Falls 23% From 2024, but Recycling Group Says Fire Risks Remain High
UK Vape Waste Falls 23% From 2024, but Recycling Group Says Fire Risks Remain High
New research from UK recycling campaign group Material Focus says more than 6.3 million vapes and pods are still thrown away each week in the UK. The figure is down 23% from 8.2 million in 2024, which the group said suggests the June 2025 single-use vape ban has helped reduce waste, but it warned that the current level still represents a major waste of valuable materials and a significant fire risk.
Mar.27 by 2FIRSTS.ai