Shares Magazine reported that British American Tobacco (BAT) stock price dropped over 8% to £22.66 on the latest trading day. The company’s full-year revenue expectation is projected to fall below the predicted range of 3% to 5%. However, BAT has not adjusted its outlook for the entire year of 2023 or its earnings per share. The company attributes its decline in performance to the impact of macroeconomic pressures in the United States on cigarette product sales.
According to Chris Beckett, Head of Stock Research at Quilter Cheviot, “British American Tobacco’s latest financial report is in line with expectations, but it is not the catalyst needed to reverse the negative sentiment towards the company and its significantly undervalued status.”
The company has expressed its commitment to “building a smoke-free world,” with 50% of its revenue derived from non-combustible products by 2035.
Additionally, the performance of Glo’s heating products has been mixed, with challenges in adapting to difficult market conditions in the United States.
Market share of Vuse has increased by 100 basis points, reaching 36.8% in key markets, driven by an increase in the number of consumers for its product, Vuse Go, which is now available in 59 markets.
Russ Mould, Investment Director at AJ Bell, stated that the company is undergoing a significant period of transformation, with a target to have half of its revenue come from non-combustible products by 2035.
