Feed Comunitate
RR
Rickie Reeve
@rickiereeve · Jul 26

$BTI reported results today. There were no negative surprises, which is fine.
Key issues remain: declining US cigarette volume and weaker performance in heated tobacco. In addition, the environment is becoming more complex in the e-cigarette segment. This segment is key to NGP (new growth products) profitability targets in 2024. There is a continuing risk of a menthol cigarette ban in the US!

All these issues have long been known and probably factored into the price as well.

The rest of the business, apart from those already mentioned, is doing well. Therefore, I am personally satisfied with the results. Hopefully management will continue to work on the problems.

Părerea personală a unui membru al comunității, nu o recomandare de investiții. Regulile comunității

BC
Bill Combs @billcombs Jul 28

Super thanks for the summary. I have shares of $BTI in my portfolio and I'm happy with the results as well.

RR
Rickie Reeve @rickiereeve Jul 28

There are a lot of us BTI fans here. I'm glad. 😉

DD
Daniela Duong @danieladuong Jul 27

I wonder how many states are raising taxes on cigarettes and alcohol, if it will have any effect on sales (maybe people will stop buying), but so far I don't think it's visible, or am I wrong?

RR
Rickie Reeve @rickiereeve Jul 27

That's the nice thing about tobacco companies, that they can maintain high margins despite an unfavourable environment. Brands are particularly strong in cigarettes (pricing power). Then, of course, there is Australia. There, the price of a pack goes up to $40 and gradually the government is succeeding in reducing the number of smokers because of the price. But despite this extreme case, margins remain normal. Those margins are easily kept high mainly because of the low cost nature of the whole business.

MD
Monday Dayton @mondaydayton Jul 26

I am also happy with the company and own. I don't know about the buyback, well, the results are not bad, but as you write, this segment is going through a change, evolution or whatever you want to call it and we will see how these companies handle it, but I believe they have good management to handle it. If the price drops, I'll definitely be overbuying. 😊

RR
Rickie Reeve @rickiereeve Jul 26

That makes two of us. I don't see a buy-in yet either. I'm 15% in $BATS. That's good enough for now, although if it goes down again, I'll be happy to overbought as well.

MW
Moe Whitehead @investormoe Jul 26

I have$BTI too and I like the results, I'll be overbought, fine dividend stock for me.

RR
Rickie Reeve @rickiereeve Jul 26

Great, hopefully better times are finally ahead for BAT.

NG
Nikolas Gabriels @nikgab Jul 26

Are the results out yet? I thought they weren't due till tomorrow. Do you have a link to the report?

MW
Moe Whitehead @investormoe Jul 26

Here's a link directly to the official report.

https://www.bat.com/group/sites/UK__CRHJSY.nsf/vwPagesWebLive/DOCU3LTH

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