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  • BAT’s Block Listing Application and Cancellation

    BAT’s Block Listing Application and Cancellation

    Today (Feb. 27), British American Tobacco announced it made an application to the Financial Conduct Authority and the London Stock Exchange for a block listing totaling 1.5 million ordinary shares of 25p each to be admitted to the equity shares category of the Official List and to trade on the main market of the London Stock Exchange.

    The shares will be issued pursuant to the BAT Sharesave Scheme. Upon issuance, the shares shall rank equally with the existing issued shares of the company. The admission of the shares is expected on March 3, 2025.

    BAT further announced that it currently has 31,189 ordinary shares of 25p each block listed under the British American Tobacco Executive Share Option Scheme. No allotments have been made under the Scheme since the last block listing return was released Jan. 1, 2025. All outstanding options under the Scheme have now been exercised and the Scheme has closed. As a result, the block listing associated with the Scheme has been cancelled.

  • Potential Compensation Boon for BAT CEO

    Potential Compensation Boon for BAT CEO

    A newly proposed incentive scheme by British American Tobacco could make its chief executive, Tadeu Marroco, one of the highest-paid executives in the world. According to the Financial Times, “The chief executive of British American Tobacco could receive up to £18.2mn in a new three-year pay deal, making him one of the highest earning FTSE bosses as big UK companies move to narrow the pay gap with US rivals.” The compensation package would be based on BAT hitting certain targets — such as increasing the profitability of cigarette alternatives — and if its share price rose 50% over that time span.

    Marroco, who has been chief executive since May 2023, will be guaranteed a minimum of £1.8 million in salary, pension, and benefits annually the company said. He received £6 million in total last year.

    “The increasingly competitive global market for senior talent has resulted in upward pressure on pay . . . With many US-based candidates, we observe that pay disparities are particularly evident with incentive opportunities, which tend to be far above typical UK levels,” BAT said in its annual report.

    It added that one-third of its senior hires over the past three years had been from the U.S. and that it had “an elevated vacancy rate across senior management levels, with lengthening times to hire”.

    Shareholders will vote on the new pay deal, which was first reported in The Sunday Times, at the company’s annual general meeting in April.

  • BAT Shares Tumble 9%

    BAT Shares Tumble 9%

    Today, British American Tobacco shares dropped 9% in London on news it would take a $7.74 billion hit from a Canadian lawsuit as well as fears that changes in Bangladesh and Australia would hurt its performance in 2025. The $6 billion loss off its market capitalization was the company’s worst day on the market since 2020. BAT’s stock remains up 7% since the start of the year.

    Under the proposed Canadian settlement, an upfront payment will be followed by annual payments, initially worth 85% of net income after taxes, excluding income related to alternative products like vapes, and reducing over time. BAT and other tobacco companies were set to pay $22.8 billion to settle a long-running case in Canada, but some parties, including Philip Morris International’s Canadian affiliate, have since objected to the proposal.

    Meanwhile, BAT said new tobacco regulations in Australia and increased excise and VAT in Bangladesh would hurt its tobacco business.

    Chief Executive Officer Tadeu Marroco said these represented “significant regulatory and fiscal headwinds” that would dent its performance this year, but their impact would recede into 2026 when BAT’s investments would also pay off to spur growth. For 2025, the company expects just 1% revenue growth.

    Marroco also said he was hopeful U.S. President Donald Trump’s new administration could tackle sales of illegal disposable vapes, which have impacted its cigarette and vape sales in the country. “We remain committed to returning to our mid-term guidance of 3% to 5% revenue and 4% to 6% adjusted profit from operations growth on a constant currency in 2026,” he said.

  • BAT: Illicit Vapes Making Market “Unsustainable”

    BAT: Illicit Vapes Making Market “Unsustainable”

    British American Tobacco’s growth in smoke-free products was deemed to be dragged down by the prevalence of illicit vapes in the US market, making for disappointing numbers in 2025. The company reported that vape sales in the US fell 0.8% last year, with price increases failing to make up for a slump in volumes, a sign that competition from unauthorized manufacturers is eroding its market share.

    Cigarette volumes in the US plunged 10.1%, BAT said, blaming a downturn in consumer spending and an increase in the discount category, where the company does not operate. The company is forecasting growth in adjusted operating profit of 1.5% to 2.5% for 2025.

    “We all understand the situation is unsustainable in the US on the vapor side,” said Chief Executive Officer Tadeu Marroco on a call with reporters, adding that the illicit vapes mean that users have no control over the specifics of what they are consuming. “Hopefully the new administration will bring a new way to think about enforcement.”

  • Markets Stand Behind Tobacco

    Markets Stand Behind Tobacco

    Seeking Alpha, a crowd-sourced content service that publishes news on financial markets, said the prices of tobacco and smoking products in the U.S. rose 6.8% in January compared to a year ago on an unadjusted basis. Overall, core inflation was up 3.3% year-over-year during the month, which was slightly higher than the pace in December and above the expectations of analysts.

    On a month-to-month comparison, tobacco and smoking products were up 0.4% in January to mark the fifth month in a row of higher pricing for the broad category.

    Analysts have not moved off their position that Philip Morris International, Altria, Imperial Brands, and British American Tobacco could all see benefits under the Trump Administration.

    Seeking Alpha said, “UBS sees the Republican control of Congress as a slight positive for tobacco stocks. Analyst Faham Baig reminded investors that Republican control has historically been seen as a positive for U.S. tobacco, due to the likelihood of reduced regulation. On that note, the Office of Information and Regulatory Affairs at the OMB withdrew in January the menthol cigarette ban and the U.S. has pulled back from the World Health Organization.”

  • Busy Day for BAT Stocks

    Busy Day for BAT Stocks

    British American Tobacco (BAT) executed a share buyback program January 27, purchasing 129,541 ordinary shares at an average price of £29.951908 per share. According to TipRanks, this move, authorized by shareholders, “is part of its broader strategy to enhance shareholder value by reducing the number of shares in circulation, which could potentially impact the company’s stock value and stakeholder interests.”

    Later in the day, the stock rallied to £31.50 on what proved to be an all-around great trading session for the stock market, with the FTSE 100 Index. According to MarketWatch, that price was a 52-week high for BAT, surpassing the £30.47 from January 24.

  • Wall Street Likes Big Tobacco

    Wall Street Likes Big Tobacco

    According to Seeking Alpha, a leading financial research firm, U.S.-listed tobacco companies had a successful year of returns in 2024. “The dividend aristocrats Philip Morris, British American Tobacco, and Altria Group rose between 24% and 27.9% last year, compared to S&P 500’s 23.3% gain during that period,” Seeking Alpha wrote.

    Seeking Alpha’s analysts and Wall Street opinions think 2025 will be equally positive for Big Tobacco.

    “On British American Tobacco, the bullishness of SA analysts crossed with one Sell, two Holds, and a Buy recommendation of sell-side analysts. Similarly, Altria Group got a resounding Buy from Seeking Alpha analysts compared to a wide spectrum of opinions on Wall Street.

  • Bullish on BAT

    Bullish on BAT

    “British American Tobacco (BAT), trading at €35.14 per share with a market cap of €77.45 billion and a 7.97% dividend yield, presents a compelling case for income-focused investors,” Ricardo Pillai wrote for Yahoo! Finance. “Despite modest growth expectations and ongoing regulatory risks, BAT’s strong cash flow, leadership in emerging categories like vapor and modern oral products, and attractive valuation make it an appealing defensive play. The stock trades at a forward P/E of approximately 7x, significantly discounted compared to peers like Philip Morris (PMI) and Altria, signaling potential undervaluation for a company with consistent earnings and robust dividend sustainability.”

    Pillai said BAT’s strategy was to reduce dependance on combustible products, and pivot to being 50% smokeless by 2035. Its Vuse brand e-cigarette holds 40.3% value share of top markets, and is making strides with Velo in the modern oral market. Analysts are bullish on BAT’s future because it appears to be striking a middle ground that investors seek in terms of products and markets.

    “The overarching investment thesis hinges on BAT’s ability to accelerate growth in new categories at a pace exceeding the decline of its smoke products,” Pillai said. “While the strategy is ambitious, its execution thus far has been promising. For investors seeking a reliable dividend stock with modest growth potential, BAT offers a stable and defensive portfolio addition. With regulatory challenges already factored into its valuation, the next financial release will be pivotal in confirming its strategic trajectory. BAT remains a ‘Buy for Income,’ not a growth play, but a compelling option for those prioritizing steady returns.”

  • Stock Buybacks Underway

    Stock Buybacks Underway

    Several large tobacco industry stalwarts have continued with stock buyback programs this week.

    British American Tobacco announced the repurchase of 134,079 ordinary shares at an average price of 2,904.6775 pence per share as part of its ongoing buyback program. This move is aimed at reducing the number of shares in circulation, potentially increasing the value of remaining shares and benefiting shareholders. Following the completion of this transaction, the company will have 2,208,154,745 shares outstanding, with 133,266,206 held in treasury, thereby impacting shareholders’ notifications under regulatory guidelines.

    Imperial Brands PLC announced the repurchase and cancellation of 152,276 of its ordinary shares as part of its GBP 1.25 billion share repurchase program. This transaction, executed through Morgan Stanley on the London Stock Exchange, aims to reduce the overall number of shares in circulation, potentially enhancing shareholder value by increasing earnings per share.

  • Report: E-Cig Market to Reach $23B by 2029

    Report: E-Cig Market to Reach $23B by 2029

    The E-cigarette market is projected to grow from its current $18.98 billion to $23.15 billion by 2029, an increase of 3.4%, that according to the “E-Cigarette Market Research Report 2020-2029” that was released today.

    The global e-cigarette market is highly competitive, characterized by the presence of key players such as Altria Group, British American Tobacco (BAT), Imperial Brands, and Japan Tobacco International (JTI). With the declining sale of traditional cigarettes due to increasing health awareness and regulatory pressures, such companies have aggressively entered the e-cigarette market, pushing innovation and technology.

    The global e-cigarette market continues to see user-friendly products introduced that are popular with beginners, as well as open systems including mods that offer greater customization options for experienced vapers. Advancements in battery technology and improvements in e-liquid formulation have likewise helped advance the vaping experience.

    Governments, non-profit organizations, and healthcare providers have for decades been pushing awareness against the health risks of smoking, which is positively impacting the e-cigarette market.