British American Tobacco Exits the Russian Market
Following our announcement on March 9, 2022, we have now completed our review of our presence in Russia. The environment is highly complex and changing exceptionally quickly and unpredictably, the company said in a statement, referring to Russia's militar
“Further to our announcement on 9 March 2022, we have now completed our review of our presence in Russia. The environment is very complex and changing unusually fast and unpredictably,” the company said in a statement, referring to Russia’s military invasion of Ukraine.
“We have concluded that BAT’s ownership of the business in Russia is no longer sustainable in the current environment,” the company wrote.
“Today, we have initiated a process to rapidly transfer our Russian business in full compliance with international and local laws. In addition to continuing to pay the salaries of our 2,500 employees, we will do our best to safeguard their future employment.
“Once completed, BAT will no longer have a presence in Russia.
“Following our decision today, and given the ongoing uncertainties relating to Ukraine and Russia, as well as the potential indirect impact on other parts of the Group, we believe it is prudent to revise our guidance for the full year 2022. We now expect 2% to 4% constant-currency revenue growth and mid-single-digit constant-currency adjusted diluted EPS [earnings per share] growth. In 2021, Ukraine and Russia accounted for 3% of Group revenue and a slightly lower proportion of adjusted operating profit.”
BAT had faced harsh criticism for its earlier decision to continue operating in Russia. “If you are a member of BAT’s board, popularity may never have been a personal priority. Even so, those overseeing a large, widely held FTSE 100 company might still feel obliged to explain why, amid the broad boycott of Russia by multinationals, they believed it was acceptable to continue doing business there more or less as usual,” wrote Nils Pratley in The Guardian.
Previously, Philip Morris International, Japan Tobacco International, and Imperial Brands announced the suspension of their operations in Russia.
