BAT

Company Update:
BAT cuts 9000 positions worldwide.  The plan is expected to generate EUR700m of savings by cutting 20% of its global workforce by 2028. 5500 positions will be cut while 3500 will be outsourced to a strategic partner (Accenture).  The group wants to adapt to shift in consumption patterns described as  "more dynamic and digital". The No combustion products will rise (already 42% of sales) with nicotine pouches growing strongly, notably in the US. 

Expert Opinion:
This good news for BAT shareholder as this will further enhance the group's profitability. This will  also pressures Imperial to consider further productivity gains of its own as BAT sales/staff will hit £600k/pop vs. £380k at IMB. 

The valuation gap between BAT and Imperial ios now massive. Over 1 year the outperformance of BAT stands at c40%. We expect this gap will narrow if not close (as it always did in the past).  



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