REG - British Amer.Tobacco - Russia business update – agreement signed

British American TobaccoAnnouncement

07/09/2023 07:00

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RNS Number : 6358L  British American Tobacco PLC  07 September 2023

British American Tobacco p.l.c.

7 September 2023

 

 

Russia business update - agreement signed

In March 2022 BAT announced that the ownership of our business in Russia was
no longer sustainable in the current environment and that our intention was to
transfer our business. BAT has now formally entered into an agreement to sell
its Russian and Belarusian businesses in compliance with local and
international laws.

The buyer is a consortium led by members of BAT Russia's management team
which, upon completion, will wholly own both businesses. Post completion,
these businesses will be known as the ITMS Group.

Throughout the transfer process one of our key priorities has been the
interests of our colleagues in Russia and Belarus. As part of the agreement,
their employment terms will remain comparable to their existing BAT terms for
at least two years post-completion.

We anticipate that the transaction will complete within the next month, once
certain conditions have been satisfied. Upon completion, BAT will no longer
have a presence in Russia or Belarus and will receive no financial gain from
ongoing sales in these markets.

BAT remains confident of delivering its Full Year guidance as set out at our
Half Year results on 26 July 2023.

 

Notes to Editors

·      BAT's operations in Russia include a head office in Moscow, 75
regional offices and a manufacturing facility in St. Petersburg. BAT also has
an office in Belarus.

·      At 30 June 2023, on a constant currency basis, Russia and Belarus
accounted for approximately 2.7% of Group revenue, and approximately 2.5% of
Group adjusted profit from operations.

 

ENDS
Enquiries

Media Centre

+44 (0) 20 7845 2888 (24 hours) | @BATplc (https://twitter.com/BATplc)

Investor Relations

Victoria Buxton: +44 (0)20 7845 2012

Amy Chamberlain +44 (0)20 7845 1124

John Harney: +44 (0)20 7845 1263

Jane Henderson +44 (0)207845 1117

 
About BAT

BAT is a leading, multi-category consumer goods business with a purpose to
build A Better Tomorrow™ by reducing the health impact of its business
through offering a greater choice of enjoyable and less risky products for
adult consumers.

The company continues to be clear that combustible cigarettes pose serious
health risks, and the only way to avoid these risks is not to start or to
quit. BAT encourages those who would otherwise continue to smoke to switch
completely to scientifically-substantiated, reduced-risk alternatives*†. In
order to deliver this, BAT is transforming into a truly consumer-centric
multi-category consumer products business.

BAT's ambition is to have 50 million consumers of its non-combustible products
by 2030 and to generate £5billion of New Categories revenue by 2025. BAT has
set stretching ESG targets including achieving carbon neutrality for Scopes 1
& 2 by 2030 and eliminating unnecessary single-use plastic and making all
plastic packaging reusable, recyclable or compostable by 2025.

BAT employs over 50,000 people. The BAT Group generated revenue of £27.65
billion in 2022 and profit from operations of £10.5 billion.

The company's Strategic Portfolio is made up of its global cigarette brands
and a growing range of reduced-risk*† New Category tobacco and nicotine
products and traditional non-combustible tobacco products. These include
vapour, tobacco heating products, modern oral products including tobacco-free
nicotine pouches, as well as traditional oral products such as snus and moist
snuff. In the first half of 2023, we had 24 million consumers of our
non-combustible products, a rise of 1.5 million on full year 2022.

* Based on the weight of evidence and assuming a complete switch from
cigarette smoking. These products are not risk free and are addictive.

† Our vapour product Vuse (including Alto, Solo, Ciro and Vibe), and
certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are
sold in the U.S., are subject to FDA regulation and no reduced-risk claims
will be made as to these products without agency clearance.

 

Forward-looking statements

This release contains certain forward-looking statements, including
"forward-looking" statements made within the meaning of the U.S. Private
Securities Litigation Reform Act of 1995. These statements are often, but not
always, made through the use of words or phrases such as "believe,"
"anticipate," "could," "may," "would," "should," "intend," "plan,"
"potential," "predict," "will," "expect," "estimate," "project," "positioned,"
"strategy," "outlook", "target" and similar expressions. These include
statements regarding our customer target ambition, New Categories revenue
targets and our ESG targets.

All such forward-looking statements involve estimates and assumptions that are
subject to risks, uncertainties and other factors. It is believed that the
expectations reflected in this release are reasonable but they may be affected
by a wide range of variables that could cause actual results to differ
materially from those currently anticipated. A review of the reasons why
actual results and developments may differ materially from the expectations
disclosed or implied within forward-looking statements can be found by
referring to the information contained under the headings "Cautionary
Statement" and "Group Principal Risks " in the 2022 Annual Report and Form
20-F of British American Tobacco p.l.c. (BAT).

Additional information concerning these and other factors can be found in
BAT's filings with the U.S. Securities and Exchange Commission ("SEC"),
including the Annual Report on Form 20-F and Current Reports on Form 6-K,
which may be obtained free of charge at the SEC's website, http://www.sec.gov
and BAT's Annual Reports, which may be obtained free of charge from the BAT
website www.bat.com (http://www.bat.com/) .

Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser. The forward-looking
statements reflect knowledge and information available at the date of
preparation of this release and BAT undertakes no obligation to update or
revise these forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to place
undue reliance on such forward-looking statements.

 

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