BRITISH American Tobacco’s (BAT) share price fell up to 2.9 percent on the JSE yesterday after it revised its earnings guidance for the full 2022 financial year following a decision to exit its business in Russia.
The share price reached R597.45 yesterday after the group said it had completed a review of its presence in Russia following the invasion of Ukraine, and it planned to exit the country.
It now also expected revenue growth in constant currency terms in 2022 to increase between 2 percent and 4 percent, while adjusted earnings growth was likely to be a mid-single digit figure.
In 2021, Ukraine and Russia accounted for 3 percent of group revenue and a slightly lower proportion of adjusted profit from operations.
“We have concluded that BAT’s ownership of the business in Russia is no longer sustainable in the current environment. Today, we have initiated the process to rapidly transfer our Russian business in full compliance with international and local laws,” the tobacco product group said in a stock exchange regulatory notice.
“Beyond continuing to pay our 2 500 employees, we will do our utmost to safeguard their future employment,” the group said.
BUSINESS REPORT ONLINE