According to Sharesmagazine, the share price of British American Tobacco (BAT) fell more than 8% to 22.66 pounds on the latest trading day, and the full-year revenue is expected to reach a low 3%-5% of the forecast range. The company made no adjustments to its full-year outlook and earnings per share for 2023, and attributed the company's declining performance to the impact of U.S. macroeconomic pressure on cigarette product performance.
Chris Beckett, head of equity research at Quilter Cheviot, said: "BAT's latest financial report was largely in line with expectations, but was not the catalyst needed to start reversing the negative sentiment towards the company and its extremely low valuation."
"We continue to believe this valuation is too low, especially compared to its closest competitor Philip Morris," Beckett said.
British American Tobacco said it remains committed to "building a smoke-free world" and that by 2035, 50% of its revenue will come from non-combustibles.
The performance of the company's heating products has been mixed so far this year. Glo's results were disappointing as industry growth slowed in Japan and Italy, mixed-use increased and competitive activity intensified.
Glo Hyper Air performed in line with expectations and the global tobacco company launched new product veo in October, a range of non-tobacco consumer products in 10 European markets.
Vuse's market share increased 100 basis points to 36.8% in key markets. The tobacco company said the products "delivered strong revenue growth driven by increased consumer numbers where Vuse Go is now available in 59 markets."
Russ Mold, investment director at AJ Bell, said: “British American Tobacco is going through a period of significant change as it aims to generate half of its revenue from non-flammable products by 2035 and is grappling with the difficult US market. situation."
