London, December 06, 2023, The Europe Today: British American Tobacco said it would take a hit of around $31.5 billion as it writes down the value of some U.S. cigarette brands, acknowledging on Wednesday that its traditional market has no long-term future.
BAT shares fell as much as 10.2% in London to their lowest since September 2010. U.S.-listed tobacco stocks were also impacted. Shares in Altria were down 3.4% while Philip Morris shares were down 2.1%.
BAT’s move comes as ever-stricter regulation and growing awareness of health risks squeeze tobacco companies’ traditional business, driving declines in cigarette volumes in some markets.
The writedown marks the first time a major global tobacco firm has written off the value of its traditional cigarettes business in a major market like the United States and emphasised the need for the industry to focus on alternatives.
