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

Semler Scientific Amplifies Bitcoin Investments, Solidifying Its Position in Digital Assets

1 Mins read
Semler’s strategic direction offers insights for other institutional investors.Trending NowBest Forex Trading Robots To Invest In 2022 U.S.-based medical technology company Semler…
News

IMF commends Sri Lanka's new govt for reform continuation

1 Mins read
COLOMBO, Apr 25: The International Monetary Fund (IMF) on Friday commended the Sri Lankan government, led by President Anura Kumara Dissanayake, for…
News

U.S. Federal Reserve revokes crypto guidance for banks

1 Mins read
25th April 2025 – (Washington) The U.S. Federal Reserve announced on 24th April that it will withdraw previous guidance requiring state member…

Leave a Reply

Your email address will not be published.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

3 + 2 =