British American Tobacco Leaves Russia And Belarus; Reaffirms FY23 Outlook
Portfolio Pulse from Lekha Gupta
British American Tobacco PLC (NYSE:BTI) has agreed to sell its Russian and Belarusian businesses to a consortium led by BTI Russia's management team. The businesses will be renamed ITMS Group, and BTI will not have a presence in Russia or Belarus or gain financially from ongoing sales in these markets. The company reaffirmed its FY23 outlook for organic constant currency revenue growth of 3%-5% and adjusted EPS growth in constant currencies in mid-single digits.
September 07, 2023 | 3:09 pm
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NEUTRAL IMPACT
British American Tobacco's decision to sell its Russian and Belarusian businesses may be seen as a strategic move to exit challenging markets. The reaffirmation of its FY23 outlook suggests the company is confident in its overall business strategy.
The sale of BTI's Russian and Belarusian businesses is a significant strategic move, indicating the company's decision to exit markets it deems unsustainable. However, the reaffirmation of its FY23 outlook suggests that this move is not expected to negatively impact its overall financial performance. Therefore, the short-term impact on BTI's stock price is likely to be neutral.
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