British American Tobacco (BATS)

[monabri]

Well I am not but at the same time, it tends to show a company that is not necessarily in the real world. Style over substance. needs careful watching.

Dod

I agree with your comments Dod thanks. I've been " needs careful watching" for all the years I've held BATS, and IMB too, whilst enjoying the income, and watching the capital value of my tobacco holdings sink. Wasn't it you who warned about "expensively bought income? BATS are down 3.7% as I type, and IMB less so. as I type. Mind you, a lower price raises the yield for buyers of the shares. But for now you can count me out as a buyer of either share right now. Thanks for your input you other guys above too.

Ian.

US FDA Vape ruling

https://www.proactiveinvestors.co.uk/co ... 29629.html

[idpickering]

US FDA Vape ruling

https://www.proactiveinvestors.co.uk/co ... 29629.html

Thanks for that. An interesting read.

From the link;

9:21am: Analysts play down BAT vape ban hit
Analysts are playing down the impact of the US FDA ban on the sale of some of BAT’s vape products, although shares have slipped further, now down 2.5%.

There's some twitchy index fingers out there I think?

Ian.

[Dod101]

Well I am not but at the same time, it tends to show a company that is not necessarily in the real world. Style over substance. needs careful watching.

Dod

I agree with your comments Dod thanks. I've been " needs careful watching" for all the years I've held BATS, and IMB too, whilst enjoying the income, and watching the capital value of my tobacco holdings sink. Wasn't it you who warned about "expensively bought income? BATS are down 3.7% as I type, and IMB less so. as I type. Mind you, a lower price raises the yield for buyers of the shares. But for now you can count me out as a buyer of either share right now. Thanks for your input you other guys above too. I'm hanging onto my tobacco shares, for now at least. No knee jerk reactions from me.

Ian.

Yes but let's not get too carried away. I doubt that using flowery language/jargon is going to make too much difference to their trading. We know that they have litigation problems from time to time and that they are in a dying market so to say but for now their trading seems fine and they are still throwing off dividends.

Dod

[idpickering]

Yes but let's not get too carried away. I doubt that using flowery language/jargon is going to make too much difference to their trading. We know that they have litigation problems from time to time and that they are in a dying market so to say but for now their trading seems fine and they are still throwing off dividends.

Dod

Wise words indeed Dod thank you.

As I said above, no knee-jerk reactions from me.

Ian.

[monabri]

https://cyprus-mail.com/2023/10/16/big- ... oming-ban/

"Big Tobacco firms including British American Tobacco (BATS.L) are selling heat sticks made from nicotine-infused substances such as rooibos tea, countering an incoming European Union ban on flavoured heated tobacco products. While the sticks mark a new way to inhale the addictive drug, health experts warn that their safety is unclear"


"BAT’s zero-tobacco sticks are not subject to current EU tobacco rules, the company told Reuters. That means it can sell rooibos sticks in flavours like peppermint and tropical fruit even after a ban on flavoured heated tobacco products is implemented across the bloc later this month.

“The obvious advantage these new products should provide is a way to keep menthol and flavour varieties on the EU market,” Jefferies analyst Owen Bennett said in a note."


I read the Cyprus Mail every day....

(Not really)

[idpickering]

BAT Appoints Chief Financial Officer.

Soraya Benchikh has been appointed to the role of Chief Financial Officer and Executive Director and will join the BAT p.l.c. and Management Boards from 1 May 2024. She will succeed Javed Iqbal, who will continue to serve as interim Finance Director until 30 April 2024.

Soraya has been President, Europe at Diageo plc since January 2023, having joined Diageo in July 2020 as Managing Director for Northern Europe. Soraya previously spent 20 years at BAT where she served as President of BAT France, Area Director for East and Southern Africa, and Regional Finance Director for Europe. Earlier in her career, Soraya worked in finance roles at General Electric and Gillette.

https://www.investegate.co.uk/announcem ... er/7854992

Ian.

[idpickering]

BATS TO MAKE FURTHER INVESTMENT IN ORGANIGRAM

Organigram shares surged on Monday after it said that British American Tobacco has agreed to invest a further CAD124.6m (£74m) into the business.

The company, a licenced producer of cannabis, said the strategic partnership will see BAT - through subsidiary BT DE Investments - invest the cash between January 2024 and January 2025 and increase its stake from 19.9% to 45%.

https://www.hl.co.uk/shares/shares-sear ... dinary-25p

The above item can be found on the company news portion of the BATS page on HL.

This is an interesting move from BATS imho, and I'm toying with adding to my BATS holdings. It is good to see them diversifying I think.

I haven't seen anything from BATS themselves on this via a RNS or the like.

Ian.

[idpickering]

Further to the above;

BATS to Strengthen Strategic Partnership with Organigram

BATS subsidiary deepens strategic partnership with Organigram, investing c.£74m (CAD$124.6m) between January 2024 and January 2025 and increasing its equity position from c.19% to 45%

This investment is intended to deepen the strategic relationship between Organigram Holdings Inc. (Organigram) and BAT, which has strengthened since BAT’s initial investment and the establishment of the Product Development Collaboration (PDC) in March 2021. The PDC was set up to leverage the expertise of both companies, in order to develop the next generation of non-combustible cannabis products.

BAT is pleased with Organigram’s performance and continues to be impressed by the careful financial governance of the company. BAT also remains supportive of the category stewardship displayed by Organigram’s management team, particularly in response to tough market conditions. These factors give BAT confidence that the new investment can position Organigram to capitalise on market opportunities and deliver incremental value for both companies.

https://www.bat.com/group/sites/UK__CRH ... e/DOCXBFGL

Ian.

[qwaszx]

https://organigram.ca/

Just in case anyone else was wondering

[idpickering]

https://organigram.ca/

Just in case anyone else was wondering

Thanks for taking the time to post your offering. It's certainly an interesting read.

Ian.

[Itsallaguess]

"Rishi Sunak is considering introducing some of the world’s toughest anti-smoking measures that would in effect ban the next generation from ever being able to buy cigarettes"

"Whitehall sources said the prime minister was looking at measures similar to those brought in by New Zealand last December. They involved steadily increasing the legal smoking age so tobacco would end up never being sold to anyone born on or after 1 January 2009"

New Zealand seem to be having a change of heart -

New Zealand smoking ban: Health experts criticise new government's shock reversal -

New Zealand's new government says it plans to scrap the nation's world-leading smoking ban to fund tax cuts.

The legislation, introduced under the previous Jacinda Ardern-led government, would have banned cigarette sales next year to anyone born after 2008.

Smoking is the leading cause of preventable deaths in New Zealand, and the policy had aimed to stop young generations from picking up the habit.

Health experts have strongly criticised the sudden reversal.

https://www.bbc.co.uk/news/world-asia-67540190

Cheers,

Itsallaguess

[idpickering]

New Zealand seem to be having a change of heart -

New Zealand smoking ban: Health experts criticise new government's shock reversal -

New Zealand's new government says it plans to scrap the nation's world-leading smoking ban to fund tax cuts.

The legislation, introduced under the previous Jacinda Ardern-led government, would have banned cigarette sales next year to anyone born after 2008.

Smoking is the leading cause of preventable deaths in New Zealand, and the policy had aimed to stop young generations from picking up the habit.

Health experts have strongly criticised the sudden reversal.

https://www.bbc.co.uk/news/world-asia-67540190

Cheers,

Itsallaguess

All very interesting of course, but it won't distract me from my scheduled top up of my BATS holdings set to happen on 06 Jan 24, unless something more inviting is on offer at that time. Should that BATS top up occur, that'll put me at my maximum spend limit of any share in my HYP, and thereafter I'll look elsewhere. nb, Chatting about my HYP is ot here.

Ian.

[csearle]

"Rishi Sunak is considering introducing some of the world’s toughest anti-smoking measures that would in effect ban the next generation from ever being able to buy cigarettes"

"Whitehall sources said the prime minister was looking at measures similar to those brought in by New Zealand last December. They involved steadily increasing the legal smoking age so tobacco would end up never being sold to anyone born on or after 1 January 2009"

New Zealand seem to be having a change of heart -

New Zealand smoking ban: Health experts criticise new government's shock reversal -

New Zealand's new government says it plans to scrap the nation's world-leading smoking ban to fund tax cuts.

The legislation, introduced under the previous Jacinda Ardern-led government, would have banned cigarette sales next year to anyone born after 2008.

Smoking is the leading cause of preventable deaths in New Zealand, and the policy had aimed to stop young generations from picking up the habit.

Health experts have strongly criticised the sudden reversal.

https://www.bbc.co.uk/news/world-asia-67540190

Cheers,

Itsallaguess

I suspect that this is a fundamental conflict between doing the right thing for public health and doing the right thing for the national economy.

In an ideal world smoking would have been illegal from the outset on public health grounds such that the economy was never boosted by it. Same for booze. Trouble is that these addictive and pleasurable pursuits cause maniacal (is that even a word?) opposition when threatened. C.

[baldchap]

Trouble is that these addictive and pleasurable pursuits cause maniacal (is that even a word?) opposition when threatened.

Or maybe, the Govt are as addicted to the tax take as the users are to fags and booze.

[idpickering]

Pre-Close Trading Update and Strategy Update.

Reiteration of FY23 Delivery In Line with Guidance and Strategy Update

· Confirming full year 2023 EPS delivery in line with our guidance

· Continued strong volume and revenue growth in New Categories, led by Vuse and Velo

· New Category contribution expected to be broadly breakeven, two years ahead of our original target

· Strong AME and APMEA growth, reflecting the resilience of our global, multi-category strategy

· Macro-economic pressures in the U.S. impacting combustibles performance

· Group organic1 revenue now expected at the low end of our 3-5% guidance range at constant rates

· Now committing to 'Building a Smokeless World', with 50% revenue from Non-combustibles by 2035

· 2024 investment to accelerate our transformation and secure long-term sustainable growth

https://www.investegate.co.uk/announcem ... te/7924088

Ian (I hold).

[idpickering]

The above hasn't gone down well it seems, with BATS being down 6% as I type.

I'm happy to hang onto my BATS shares to be honest, thinking longer term than just today.

Ian.

[Dod101]

The above hasn't gone down well it seems, with BATS being down 6% as I type.

I'm happy to hang onto my BATS shares to be honest, thinking longer term than just today.

Ian.

I have been thinking for some time that a long term retreat from the tobaccos is probably a sensible strategy. I look at that sort of thing once I have my year end figures but I am sort of thinking about eliminating my tobacco holdings over the next two or three years. I am afraid their best times are behind them and they cannot hold back the tide for ever, irrespective of how they phrase it.

Dod

[monabri]

The above hasn't gone down well it seems, with BATS being down 6% as I type.

I'm happy to hang onto my BATS shares to be honest, thinking longer term than just today.

Ian.

A £25 billion write down just might not have helped.

( on a minor issue...the update appears to have been typed in a really stupid, hard to read font).

~9% down at the moment! The new CEO is doing a fine job.. not!

(A 10% yield on offer to new buyers at 2279p ).

[tjh290633]

( on a minor issue...the update appears to have been typed in a really stupid, hard to read font).

~9% down at the moment! The new CEO is doing a fine job.. not!

(A 10% yield on offer to new buyers at 2279p ).

There was a second RNS in more normal format.

Sadly I have sufficient BATS in my portfolio.

TJH

[monabri]

( on a minor issue...the update appears to have been typed in a really stupid, hard to read font).

~9% down at the moment! The new CEO is doing a fine job.. not!

(A 10% yield on offer to new buyers at 2279p ).

There was a second RNS in more normal format.

Sadly I have sufficient BATS in my portfolio.

TJH

Thank you TJH. I had noted the 2nd update and was just about to comment. Silly things like this (not checking the RNS before publishing) concern me!