Dod101 wrote:moorfield wrote:https://www.reuters.com/business/retail-consumer/bat-takes-315-bln-charge-us-cigarette-brands-2023-12-06/
That's an astonishing statement for a CEO to make. He has more or less admitted that the books have been cooked for some time.
What else is there that we don't know about? - is I imagine the question behind yesterday's drop. Alarm bells.
On the one hand, the CEO should be commended for his candour but he is admitting that the accounts have been overstating the value of their brands for some time. No analyst bothered of course to question this in the past, surprise, surprise. I would think there are going to be lots of returns to shareholders for some time to come but at the cost of capital.
I have held BAT for a very long time and cannot see me losing money on a sale if I go back far enough. They are held in an ISA so joy of joys no need to worry about paying CGT.
Dod
Obviously, having stepped up from Finance Director to CEO he knows where the bodies are buried, The writing was always on the wall for any goodwill relating to acquired tobacco brands, so to be fair they are just being prudent and honest. It is not unusual when a new CEO takes over for some kitchen sinking to take place, and that’s all this is IMO. I’m not even sure it was the writedown that caused the share price reaction; possibly more to do with the lack of revenue growth and the fact they are 10 years behind Philip Morris on heated products, However, I don’t see any reason for the dividend to be reduced so don’t really understand all the fuss hereabouts.