|Bid||36.44 x 1800|
|Ask||36.96 x 1800|
|Day's Range||36.71 - 37.23|
|52 Week Range||30.67 - 48.41|
|Beta (3Y Monthly)||0.87|
|PE Ratio (TTM)||1.66|
|Forward Dividend & Yield||2.70 (7.10%)|
|1y Target Est||N/A|
BAT says it will cut about 2,300 roles in its 55,000-employee workforce globally with a focus on 'simplification and removal of management layers.'
Vaping is a growing trend among youngsters, but Trump's recent threat to ban flavored e-cigarettes raises questions. Will traditional cigarette get back its lost glory?
British American Tobacco stock climbed on Thursday as the company announced plans to cut 2,300 jobs in a bid to shift towards cigarette alternatives.
BAT, which produces Dunhill and Lucky Strike, has been lumbering in its efforts to develop vaping and other e-cigarette products. How does British Airways compare with rivals on pilot pay? Big Tobacco’s new products still face regulatory challenges.
British American Tobacco is to axe 2,300 jobs, including a fifth of senior roles, as the cigarette maker restructures its business amid waves of industry change. The maker of Lucky Strike and Camel cigarettes on Thursday described the decision as an “important step” meant to “simplify its business and create a more efficient, agile and focused BAT”. The shake-up comes five months after Jack Bowles took the reins as chief executive and is part of his attempt to make the group more nimble and to focus on newer products with the traditional cigarette market in decline.
Shares of the second-largest tobacco company by sales were up 1.6 %, the biggest boost to the broader FTSE index on Thursday, after the maker of Lucky Strike and Dunhill cigarettes said it will cut 2,300 roles as it eliminates duplication and consolidates business units. The move by BAT, which employed more than 56,000 people at the end of last year, 629 of them senior managers, comes a day after President Donald Trump said that the U.S. would remove all flavored e-cigarettes from shelves, as officials warned millions of children had been drawn into nicotine addiction.
Jack Bowles’ plans for a “fit culture” stirs memories of heroic British footballers stubbing out cigarettes as they wheezed on to the pitch. Mr Bowles is chief executive of British American Tobacco, which simultaneously wishes to reduce its dependency on nicotine and middle managers. Big tobacco is coming late to the fashion for cutting layers of management. The MSCI World Tobacco Industry Index is down 40 per cent since July 2017.
WASHINGTON/LOS ANGELES, Sept 11 (Reuters) - The Trump administration announced plans on Wednesday to remove all flavored e-cigarettes from store shelves in a widening crackdown on vaping, as officials warned that sweet flavors had drawn millions of children into nicotine addiction. President Donald Trump and top U.S. officials expressed concern about surging teenage use of e-cigarettes, and the move comes as health officials are investigating a handful of deaths and potentially hundreds of lung illnesses tied to vaping. Health and Human Services Secretary Alex Azar said that, with Trump's blessing, the U.S. Food and Drug Administration was working on a "guidance document" that would lead to a ban of all e-cigarette flavors aside from tobacco flavoring.
A sixth person died from lung disease related to vaping but the U.S. Centers for Disease Control and Prevention is still trying to determine what is making more than 450 people nationwide ill.
U.S. health investigators are casting a wide net to understand what is sickening hundreds of vapers across the country and still have not ruled out any product on the market, even as vaping industry officials highlight the potential role of illegal cannabis products. Dr Dana Meaney-Delman is leading the U.S. Centers for Disease Control and Prevention's investigation into the culprit behind at least five confirmed deaths and 450 reported cases of lung illness linked with use of the devices. The agency is recommending that people refrain from the use of any electronic cigarette or vaping device until there is more conclusive evidence of a cause, she said in an interview.
Contrary to conventional wisdom, you don't need a hefty trust fund or deep pockets like mutual funds and other institutional players to start investing.
Investing.com - Tobacco stocks were mixed in midday trade on Friday after U.S. health officials said they were investigating more than 200 possible cases of lung disease associated with vaping.
(Bloomberg Opinion) -- Something must be done. That’s often the response to a big deal like the planned $200 billion union between cigarette makers Philip Morris International Inc. and Altria Group Inc. For the duo’s competitors overseas, the temptation will be to indulge in some copycat dealmaking. In reality, bulking up would be a bad way to address their strategic challenges.There is some commercial logic in the tie-up of the two U.S. tobacco giants given their complementary businesses: each have sought to expand into alternative tobacco products in different ways. Altria took a minority stake in vaping group JUUL Labs Inc., while Philip Morris developed its IQOS system for heating rather than burning tobacco. Altria is focused solely on the U.S., Philip Morris on the rest of the world.Cost savings may be limited, but integration should be simple. Together, the pair can cross-sell some of their products in each other’s markets. By definition, there is no antitrust hurdle. It is harder to make comparable arguments for any combination involving British American Tobacco Plc, Japan Tobacco Inc. and Imperial Brands Plc.For BAT, which has a market value of 65 billion pounds ($79 billion), the appeal of a takeover of domestic rival Imperial, capitalized at 20 billion pounds, would merely be opportunistic and financial. Imperial’s shares have a dividend yield of more than 10%, a sign investors expect the annual payout will decline. The company’s net debt is forecast to fall to below three times Ebitda this year, whereas BAT’s net borrowings are expected to touch 3.6 times the same measure of profit. An all-share deal would therefore slightly improve BAT’s leverage and generate some cost savings from cutting duplicate functions.But such a transaction wouldn’t transform BAT’s position in tobacco alternatives. A slightly stronger financial position would be a modest benefit set beside the distraction of the integration and the likely need to make disposals to assuage antitrust concerns.Japan Tobacco, worth $42 billion, is substantially less geared, so an all-paper deal would achieve more in terms of reducing indebtedness. But it, too, could present antitrust issues for BAT. The presence of the Japanese government as lead shareholder would also be a complicating factor. It’s true both Imperial and Japan Tobacco are developing less risky tobacco products. But so, too, is BAT.One idea is that Japan Tobacco and BAT carve up Imperial’s geographical empire between them. The main outcome would, however, be to expand in conventional cigarettes. The wildcard buyer is Beijing-based China National Tobacco Corp.The only compelling M&A transaction would be one that enabled these companies to redeploy large parts of their manufacturing, marketing and distribution assets into products that weren’t just less harmful, but actually harmless. No banker has come up with that yet.The combination of Philip Morris and Altria may nudge others elsewhere toward M&A at some point. For now, the market’s caution around the mooted U.S. tie-up suggests the effect is going to be marginal. Don’t hold your breath for more deals.To contact the author of this story: Chris Hughes at firstname.lastname@example.orgTo contact the editor responsible for this story: Edward Evans at email@example.comThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Chris Hughes is a Bloomberg Opinion columnist covering deals. He previously worked for Reuters Breakingviews, as well as the Financial Times and the Independent newspaper.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Altria (MO) is in discussions with Philip Morris to consider the prospects of a merger. The companies have not revealed further information regarding the development.
(Bloomberg) -- British American Tobacco Plc and Japan Tobacco Inc. risk falling further behind in fast-growing cigarette alternatives should Philip Morris International Inc. and Altria Group Inc. complete the biggest tobacco deal ever.Analysts said BAT may be the biggest loser if New York-based Philip Morris succeeds in combining with Richmond, Virginia-based Altria. Shares of BAT fell Wednesday, extending the two-day slump to as much as 6.5%. Japan Tobacco dropped less than 1% in Tokyo.The proposed combination would reunite two companies that split more than 11 years ago and result in a behemoth that would outrank BAT as the world’s largest publicly traded cigarette maker. Plus, it would put two of the most successful smoking alternatives, Juul and IQOS, together under the same roof.BAT’s new chief executive officer, Jack Bowles, faces unprecedented pressure to jump-start its underperforming portfolio of potentially reduced-risk products such as electronic cigarettes. The company has lost almost half of its market value in the past two years. The maker of Lucky Strike cigarettes lowered the outlook for growth in cigarette alternatives for both this year and last.The transaction would give Philip Morris about 58% ownership of the new company, according to a person familiar with the terms who asked not to be identified because the deal hasn’t been made public. The firms are considering a transaction based on Altria’s market value as of the close on Aug. 23, which was about $87 billion.The Marlboro-maker split up in 2008, making two companies with different strategies in the U.S. and the rest of the world. Now, they’re embracing again as Big Tobacco faces severe disruption amid declines in cigarette use and the rise of smoking alternatives.Philip Morris has invested billions of dollars in its heat-not-burn product IQOS, and Altria has the right to start selling the device in the U.S. this year, starting with a store in Atlanta next month. Altria has also invested about $13 billion in Juul, which could speed up its expansion worldwide with Philip Morris’s help.The deal would heighten prospects for further M&A, according to Jefferies analyst Ryan Tomkins. Speculation has been smoldering that BAT and Japan Tobacco could consider a joint bid for Imperial Brands Plc, which had been one of the most successful e-cigarette vendors in the U.S. until Juul came along. However, both of the potential bidders are struggling with the industry decline and have significant debt from past acquisitions.Shares of Japan Tobacco, the world’s third largest publicly traded cigarette maker, have dropped for three consecutive years to touch the lowest level since 2012 last week. Japan Tobacco has a market value of $42 billion, compared with $84 billion for Altria and $131 billion for Philip Morris. BAT is worth about $80 billion.Although Japan Tobacco does minimal business in the U.S., it sells cigarette brands such as Winston and Mevius across the globe. If those markets gain a significant Juul presence, it would cut into sales of traditional smokes and threaten earnings.Japan Tobacco has had difficulty gaining traction with its own heated tobacco business, Ploom Tech, and it’s starting to drag on results. The company earlier this month cut its full-year earnings forecast partly due to weaker-than-anticipated sales tied to its high-tech smoking devices.Chief Financial Officer Naohiro Minami said Ploom Tech has struggled with keeping repeat customers, and the company was having trouble managing production costs related to the devices.The increased competition may force Japan Tobacco to double down on its parallel strategy of seeking growth in traditional cigarettes in emerging markets. While its rivals have been staking their future more heavily on new smokeless tobacco products, Japan Tobacco has viewed the sector as just one alternative and has been expanding more than rivals by snapping up local players in emerging markets from Indonesia to Russia over the past several years.While the company has aimed to boost growth with traditional cigarettes in places where smoking rates are still high, currency volatility has weighed on international results in recent quarters. Also, the long-term term prospects for cigarettes remains a question as global demand falls and smoking regulations tighten.\--With assistance from Lisa Pham and Jeff Sutherland.To contact the reporters on this story: Thomas Mulier in Geneva at firstname.lastname@example.org;Lisa Du in Tokyo at email@example.comTo contact the editors responsible for this story: Eric Pfanner at firstname.lastname@example.org, ;Rachel Chang at email@example.com, John Lauerman, Frank ConnellyFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
Philip Morris (PM) witnesses receding cigarette sales volumes. Nevertheless, advancement in low-risk tobacco alternatives is encouraging.
Today we'll evaluate British American Tobacco p.l.c. (LON:BATS) to determine whether it could have potential as an...