The group, which has brands such as Lucky Strike in its range, is reacting to falling demand, as it said in a statement published in London on Wednesday. More and more smokers are quitting, switching to tobacco-free alternatives or cheaper brands. In addition, BAT assumes that it will only achieve internal sales growth this year at the lower end of the forecast range of three to five percent.
DAX – Investors celebrate new all-time high
You can find all chart analyzes on our YouTube channel. Inform now!
For the new year, the company expects a corresponding increase in sales in the low single-digit percentage range as well as an increasing adjusted operating result, which still excludes currency effects.
BAT, which is also in the e-cigarette business, expects the sector to break even in 2023. It should be profitable next year. The smoke-free alternatives business is expected to contribute around half of sales by 2035.
BAT shares continued their downward trend on Wednesday and hit a yearly low during trading. In the meantime it lost 8.86 percent to 22.77 pounds in London. According to analyst Owen Bennett from the investment house Jefferies, the tobacco company has little positive to report. The business development will probably prevent share buybacks until 2025. Meanwhile, the undervaluation speaks for the value. Analysts at Canadian bank RBC pointed out that the disappointing outlook was already included in the consensus estimates for the current financial year. However, the company’s indications for the coming financial year urged caution.
LONDON (dpa-AFX)
Image source: British American Tobacco, rafapress / Shutterstock.com, 360b / Shutterstock.com