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British American Tobacco has booked a £25bn impairment charge on the value of some of its US cigarette brands.
The maker of Dunhill and Lucky Strike cigarettes said on Wednesday that a slowing US economy was in part behind its decision to reassess the value of some of its brands.
“This accounting adjustment mainly relates to some of our acquired US combustibles brands, as we now appraise their carrying value and useful economic lives over an estimated period of 30 years,” BAT said.
Shares in BAT, which has a market capitalisation of £51bn, were down 7 per cent in early trading.
London-listed BAT has been trying to cut its dependence on traditional cigarettes, but its transition to vapes and heated tobacco products has been sluggish.
The company also said on Wednesday it was aiming to create about 50 per cent of its revenue from non-combustible products by 2035.
Global tobacco industry sales volumes will be down about 3 per cent this year, the group added, while reaffirming guidance for its own revenues this year.
