British American Tobacco Faces Challenges Amidst Global Regulatory Shifts

British American Tobacco took a $7.74 billion hit from a Canadian lawsuit while facing headwinds in Bangladesh and Australia. With health risks under regulatory scrutiny, shifting policies create challenges for tobacco makers. Despite setbacks, the company predicts modest revenue growth in the coming years.

British American Tobacco has reported a significant financial blow, amounting to $7.74 billion, due to a prolonged lawsuit in Canada. Additionally, the company has warned of potential challenges in key markets like Bangladesh and Australia, projecting significant headwinds for 2025.

With health risks associated with tobacco and smoking alternatives under increased regulatory scrutiny, cigarette makers face growing challenges worldwide. The shift in policies and the rise of anti-tobacco activism have put pressure on companies like British American Tobacco, which narrowly missed a substantial settlement in Canada alongside new vaping regulations in Australia aimed at curbing youth-related issues.

Despite these hurdles, CEO Tadeu Marroco remains optimistic, anticipating the potential for building on past performances as the company transitions from investment to deployment. British American Tobacco forecasts a modest revenue growth of approximately 1% by 2025, with hopes for improved performance in the latter half of the year.

(With inputs from agencies.)