British American Tobacco Writes Down $31.5B on US Cigarette Brands

Shift Towards Vaping and Economic Pressures Prompt Revaluation; Shares Drop 8%

British American Tobacco (BAT) is writing down the value of its US cigarette brands by $31.5 billion, reflecting a shift in consumer habits towards vaping and economic pressures.
BAT's US brands, including Camel, Newport, Pall Mall, and Natural American Spirit, will be treated on its balance sheet with a finite lifetime of 30 years.
The company's CEO, Tadeu Marroco, described the move as 'accounting catching up with reality', acknowledging that the traditional cigarette market has no long-term future.
BAT aims to generate 50% of its revenues from non-combustible products, such as vapes, by 2035.
The announcement led to an 8% drop in BAT's shares, marking their lowest level in over 10 years.