By Luzi Ann Santos | Moomoo News
$British American Tobacco (BTI.US)$ saw its shares fall as much as 10% after the company said it’s taking a 25 billion pound ($31.5 billion) non-cash adjusting impairment charge related to some of its US combustible brands.
The stock touched a new 52-low week of $28.35 before trading at $28.85, down 8.5% in US trading. That took this year's slump to 28%.
The company cited “macro-economic pressures in the US impacting combustibles performance.” The cigarette maker said it’s now assessing the carrying value and useful economic lives of the brand over an estimated period of 30 years. It expects about half of its revenue to come from non-combustibles by 2035.
The company is facing difficult US conditions as smokers switch to next-generation products, the Wall Street Journal quoted AJ Bell as saying. The company is targeting half of its revenue coming from non-combustible products like vapes by 2035.
That will hurt the company’s near-term financial results, sending shares declining, the Journal quoted AJ Bell investment director Russ Mould as saying.