News

Cigarette Makers Struggle as BAT Announces $32 Billion Write-Down

1 Mins read

London-listed British American Tobacco (BAT), renowned for brands such as Lucky Strike and Dunhill, delivered a significant blow to the industry with its announcement of a massive $32 billion write-down of its cigarette brands. As a result, BAT’s American depositary receipts plummeted by 8%.

In a domino effect, Altria Group, responsible for the Marlboro brand, and Philip Morris International also experienced a decline in their stock prices. In premarket trading, both companies saw a roughly 1% drop. It is worth noting that Philip Morris International was spun off by Altria in 2008, although Altria still holds control over Philip Morris brands in the United States.

This development highlights the great uncertainty that tobacco firms face, even as they strive to diversify beyond traditional smoking and explore alternatives like vaping. In fact, some countries are taking steps to completely eradicate smoking. For instance, New Zealand recently contemplated a law that would have eventually prohibited the sale of cigarettes within the country.

Despite these challenges, British American Tobacco remains resilient amidst turbulent times. Derren Nathan, the head of equity research at Hargreaves Lansdown, commented: “While it is encouraging to witness a decline in global tobacco consumption from a public health standpoint, doubts still remain regarding the safety of these newer alternatives.”

Related posts
News

North Korea Accused of Stealing Billions Through Cyberattacks to Fund Nuclear Program

3 Mins read
An international report reveals North Korea’s extensive cyber operations, detailing billions stolen through cryptocurrency theft, fake remote tech jobs, and malware, all…
News

The silent war: When virtual attacks inflict real-world devastation

3 Mins read
As digital transformation accelerates worldwide, cyberspace has become vital to the economy and society — but also a high-risk arena for data…
News

'Ether Caught Fire': ETH Surged as Capital Fled Bitcoin in Q3, CoinGecko Report Finds

2 Mins read
Ethereum (ETH) emerged as the frontrunner in crypto’s third-quarter recovery, leaving bitcoin (BTC) behind as capital flowed into altcoins, DeFi protocols, and…

Leave a Reply

Your email address will not be published. Required fields are marked *

6 + 3 =