British American Tobacco (BAT) forecasts low sales growth and loss of profits as more and more Americans quit smoking. A number of brands, including Newport, Camel, Natural American Spirit and Pall Mall, were written off by 32 billion euros, resulting in a net loss of 16 billion euros. This was reported by UNN with reference to RTL Television.
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The decline in cigarette consumption in the US is causing problems for tobacco company British American Tobacco (BAT) as fewer Americans turn to regular cigarettes. BAT has had to reduce the value of its traditional US business by €32 billion (£27 billion), the company has announced. The net loss reaches 16 billion euros (14.2 billion pounds).
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CEO Tadeu Marrocco said he will continue to invest in expanding his cigarette alternative business in the US. The cost of this will put as much strain on the balance sheet in 2024 as the uncertain economic situation in the US.
The company also said that it plans to sell at least part of its stake in ITC, India's largest cigarette maker, as BAT owns 29% of the company.
Recall
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