Introduction to BAT’s New Chairman Search

The FTSE 100 cigarette maker, British American Tobacco (BAT), is preparing to start the search for a new chairman. This decision comes as the company continues to navigate the ever-changing landscape of the tobacco industry.

Background on the Current Chairman

The current chairman, Luc Jobin, a Canadian business veteran, has been at the helm since 2021. However, he has been on the board since 2017, which means that according to British corporate governance guidelines, he will no longer be classified as independent by mid-next year. These guidelines stipulate that directors who have served for more than nine years can no longer be considered independent.

Search for a Successor

The search for Mr. Jobin’s successor is expected to commence soon, with the aim of completing the process by late 2025 or early 2026, according to insiders. This timeline allows for a thorough and meticulous search for the right candidate to lead the company forward.

Company Overview

With a market capitalization of over £77 billion, British American Tobacco remains one of the largest companies listed on the London Stock Exchange. The company has shown resilience and adaptability, as evidenced by its half-year results, which indicate that income is on track to exceed previous city guidelines.

Drivers of Growth

The growth of the company is significantly heated by so-called next-generation products, such as Velo, a global brand of nicotine bags. These innovative products are crucial in the company’s strategy to navigate the challenges posed by the declining demand for traditional tobacco products.

CEO’s Outlook

The CEO of BAT, Tadeu Marroco, expressed optimism about the company’s future, stating, "In the United States, I am very pleased that we expect to return to H1 and FY for both sales and profit growth." He also highlighted the stabilization of the company’s total volume and the growth of its value share in the industry, excluding the deep discount segment where BAT is not present. This growth is driven by brands such as Natural American Spirit and Lucky Strike.

Conclusion

The search for a new chairman marks an important milestone for British American Tobacco as it looks to the future. The company’s ability to adapt and innovate will be crucial in its continued success and growth in a rapidly changing market.