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Smartkarma AI

Smartkarma

Smartkarma unites the fragmented investment industry, connecting institutional investors, independent research providers, and corporates within a single network.

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Equity Bottom-Up

British American Tobacco / Equity Bottom-Up

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Strategic Pivot to New Categories is Critical: BATS is aggressively pursuing its 'A Better Tomorrow' strategy, aiming for 50% of revenue from non-combustible products by 2035. The New Categories segment achieved profitability in 2023, two years ahead of schedule, driven by strong growth in Vuse (vapor) and Velo (modern oral). This transition is essential to offset the secular decline in traditional cigarette volumes.</li>
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Significant US Market Headwinds: The US, a key market, faces considerable challenges including macroeconomic pressures, the rise of illicit disposable vapes, and the looming threat of a menthol cigarette ban. These factors led to a massive £27.3 billion non-cash impairment charge in 2023 related to its acquired US combustibles brands, signaling a significant revaluation of their long-term prospects.</li>
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Resilient Financials and Shareholder Returns: Despite declining cigarette volumes and significant write-downs, the company maintains strong cash flow generation and a commitment to its progressive dividend policy. Its global footprint and pricing power in combustibles provide a resilient financial base to fund the transition into New Categories and continue rewarding shareholders.</li>
</ul>This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.


  
Strategic Pivot to New Categories is Critical: BATS is aggressively pursuing its 'A Better Tomorrow' strategy, aiming for 50% of revenue from non-combustible products by 2035. The New Categories segment achieved profitability in 2023, two years ahead of schedule, driven by strong growth in Vuse (vapor) and Velo (modern oral). This transition is essential to offset the secular decline in traditional cigarette volumes.
  
Significant US Market Headwinds: The US, a key market, faces considerable challenges including macroeconomic pressures, the rise of illicit disposable vapes, and the looming threat of a menthol cigarette ban. These factors led to a massive £27.3 billion non-cash impairment charge in 2023 related to its acquired US combustibles brands, signaling a significant revaluation of their long-term prospects.
  
Resilient Financials and Shareholder Returns: Despite declining cigarette volumes and significant write-downs, the company maintains strong cash flow generation and a commitment to its progressive dividend policy. Its global footprint and pricing power in combustibles provide a resilient financial base to fund the transition into New Categories and continue rewarding shareholders.
This content is AI-generated and displayed for general informational purposes only. Please verify independently before use.

Primer: British American Tobacco (BATS LN) - Sep 2025

United Kingdom

British American Tobacco P.L.C. operates as a holding company for a group of companies that manufactures, markets, and sells cigarettes and other tobacco products including cigars and roll-your-own tobacco.

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Primer: British American Tobacco (BATS LN) - Sep 2025

Strategic Pivot to New Categories is Critical: BATS is aggressively pursuing its 'A Better Tomorrow' strategy, aiming for 50% of revenue from...

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