Altria Group, Inc. (MO) and Philip Morris International Inc. (PM) are experiencing a decline in their share values today following an announcement by British American Tobacco PLC (BTAFF).
The firm announced its intention to reduce the carrying value of certain cigarette brands in the United States by approximately 25 billion British pounds (equivalent to 31.5 billion US dollars).
As a result of this announcement, the share price of Altria Group, Inc. fell by 2.4 percent, while the share price of Philip Morris International Inc. fell by 1.8 percent.
This decision by British American Tobacco is a response to the ongoing challenges faced by tobacco companies, such as strict regulatory measures, greater recognition of tobacco-related health hazards, and declining demand for cigarettes in certain markets.
British American Tobacco pointed to challenging economic conditions in the US, where inflation-wary consumers are opting for cheaper brands, and noted that the increasing popularity of unauthorized disposable vaporizers is impacting its US cigarette business.
News Source: 12punto
