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Hi folks,
I hope you've had a great start to 2025 and, like me, are looking forward to a year full of news! Starting with the very clear re-election of Donald Trump, the complete realignment of US politics and the new zeitgeist, as it were, a flood of new influences is permeating at least my view as a content creator.
As these topics are becoming increasingly complex, I would like to launch a new format today: that of short presentations. The aim is to focus more on specific facts in order to generate more content in less time. This currently seems to be more popular on some platforms, which is why we are starting today with selected figures from BAT - Yes, tobacco again
British American Tobacco presented its figures for the fourth quarter of 2024 on February 13, 2025. The outlook is characterized by challenges in the traditional tobacco business, but also shows significant progress in new areas. So in this article, I want to take a look with you at what BAT has reported.
Let's first take a look at turnover. The total turnover is - 5.2% - probably mainly due to sales in Russia/Belarus. The share of the so-called "New Categories" has grown by +8.9%. These products account for 17.5% of total sales. In contrast to 2023, when it was only 1%. This fits with the statement that 29.1 million BAT consumers use smokeless products. That is an increase of +3.6 million.
These figures suggest that the mantra "A smoke-free future with BAT" can hypothetically work.
However, BAT also faces challenges. The US market is struggling with illegal vaping products and a difficult economic environment. BAT is also affected by this. However, the development in the Modern Oral segment, where sales increased by 232%, is positive. Due to regulatory changes in Bangladesh and Australia, BAT expects restrained growth in 2025. However, the second half of the year is expected to be stronger. It remains to be seen whether the medium-term targets (3-5% sales growth and 4-6% profit growth by 2026) can be achieved.
"2024 was an investment year in which the results were in line with our forecasts," said Tadeu Marroco, Chief Executive Officer of BAT. For 2025, he expects the volume of tobacco to decrease by 2%.
Nevertheless, it was announced that the total dividend payout will be increased by 2.0%.
What does all this tell me?
BAT is facing a potential turning point. While the traditional business is weakening, progress in the new categories is promising. The long-term vision is clear, but the short-term challenges cannot be overlooked. A smoke-free future with BAT? - One possibility.
Did you like the new format?
Your Bass-T
https://www.bat.com/investors-and-reporting/results-centre
