British American Tobacco: Revenue Analysis, Foreign Investment, and Sustainability Strategies

British American Tobacco Company
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Word count: 2073

1 Table of Contents
Background and Introduction.................................................................................... 1
Investing in foreign countries (FDI)...........................................................................2
Sustainable future advantage:............................................................................... 2
Revenue analysis:..................................................................................................... 2
Key changes and the associated risks......................................................................3
Climate change:..................................................................................................... 3
Foreign exchange risk:........................................................................................... 4
Hedging currency volatility.................................................................................... 4
Exchange rate risks and political risks......................................................................5
Consumer health risk:............................................................................................ 5
Company’s risk management strategies...................................................................6
Recommendation and justification............................................................................8
References.............................................................................................................. 10
Appendix:................................................................................................................ 11
1. Background and Introduction
The basic purpose of this report is to analyze British American Tobacco (BAT),
its revenue trend, and information about key attractions when investing in foreign

countries. This report will also cover E sources of exchange rate and political risks
that the company has faced and is facing, and it will provide recommendations and
justification to the BAT.
British American Tobacco PLC is one of the biggest exporters of tobacco,
originally known as British-American Tobacco Company Ltd. London serves as the
company's global headquarters, and Brown & Williamson Tobacco Corporation, its
principal American subsidiary, is based in Louisville, Kentucky (BAT, 2020).
1.1 Investing in foreign countries (FDI)
British American Tobacco (BAT), a multinational manufacturer of consumer
goods, announced it will invest $130 million in a plant in the FDI.
1.1a Consumer advantages:
British American Tobacco had a very successful last year, achieving and
surpassing its financial targets. Market share and revenue both increased over time.
Along with an improved strategy that better reflects the changing demands of their
customers, BAT also adopted a new vision last year. With this strategy, they can
react even faster to the possibilities and difficulties that, in their opinion, are crucial
for a cigarette firm devoted to investing in the future (Gilmore, 2018).
1.1b Sustainable future advantage:
BAT's whole commitment to investing in FDI to a multi-category business,
underpinned by investment from their combustibles category, will support ongoing
high separate adjusted profits growth and drive sustainable development. BAT is a
market-leading, multi-category consumer products company whose goal is to
awaken adult customers' senses all around the world (BAT, 2022).
1.2 Revenue analysis:

A 4.5% reduction in combustibles was countered by a strong volume increase
in all New Categories. Group cigarette volume increased in the US, Portugal, Turkey,
Malaysia, and the Soviet Union, but this growth was more than offset by declines in
Global Travel Retail (GTR), which were caused by COVID-19-related travel
restrictions, in South Africa (because of a special government-mandated sales ban
between March and August), in Indonesia (because of disproportionate additional
tax hikes and the deferred integration of price controls), and because of a more
catastrophic effect on consumption (BAT, 2021).
Net Margin Net Income Revenu
e
9043.8 34154.3
26.48 %