British American Tobacco reported a 6.2 billion pound ($7.74 billion) hit from a long-running lawsuit in Canada on Thursday, and warned of "significant" headwinds in Bangladesh and Australia in 2025 after annual revenue missed forecast.
Health risks associated with tobacco and smoking alternatives have been under regulatory scrutiny for several years, and cigarette makers are facing several challenges globally from policy shifts to anti-tobacco activism.
The maker of Lucky Strike and Dunhill cigarettes and some rivals in October had neared a C$32.5 billion settlement in Canada, and new vaping regulations in Australia came into force last year, in a bid to curb youth vaping.
"In 2025, while we expect significant regulatory and fiscal headwinds in Bangladesh and Australia to impact our combustibles performance, I am confident that we will progressively build on our delivery as we shift from investment to deployment," Chief Executive Tadeu Marroco said in a statement.
The company expects 2025 revenue to grow about 1% at constant currency rates, and performance is projected to be weighted towards the second half of the year.
Revenue for the 12 months ended December 31 was 25.87 billion pounds and adjusted profit stood at 362.5 pence per share, compared with expectations of 26.11 billion pounds and 362.2 pence, respectively, according to a company-compiled poll.
Health risks associated with tobacco and smoking alternatives have been under regulatory scrutiny for several years, and cigarette makers are facing several challenges globally from policy shifts to anti-tobacco activism.
The maker of Lucky Strike and Dunhill cigarettes and some rivals in October had neared a C$32.5 billion settlement in Canada, and new vaping regulations in Australia came into force last year, in a bid to curb youth vaping.
"In 2025, while we expect significant regulatory and fiscal headwinds in Bangladesh and Australia to impact our combustibles performance, I am confident that we will progressively build on our delivery as we shift from investment to deployment," Chief Executive Tadeu Marroco said in a statement.
The company expects 2025 revenue to grow about 1% at constant currency rates, and performance is projected to be weighted towards the second half of the year.
Revenue for the 12 months ended December 31 was 25.87 billion pounds and adjusted profit stood at 362.5 pence per share, compared with expectations of 26.11 billion pounds and 362.2 pence, respectively, according to a company-compiled poll.
