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Rickie Reeve
@rickiereeve · Feb 8

$BTI released results today. 👇

The main positives are the rapid reduction in debt (adj. net debt / adj. EBITDA 2.6x). This is especially important as management has long targeted debt reduction to initiate buybacks. At the current price, these could have a significant impact on the exchange rate. Another important milestone is the break-even in the NGP (next generation products) segment, 2 years ahead of the originally planned date! Last but not least is the effort to monetize the stake in ITC, which is very substantial.
The negative news is, for example, the lower volume of cigarettes sold in the US. So an accelerated downward trend.

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Ashraf Aboudar @ashraf_dd Feb 9

The results of the "tobacco companies" were pretty scattered this week and so were their stock movements :) Some up, some down. $BTI was up nearly 7% yesterday, but the premarket isn't favoring the company and the stock is down 1.7%. We'll see how this plays out. It's a tough business at the moment. Cigarette sales are down.

RR
Rickie Reeve @rickiereeve Feb 14

It's a tough business, but at the same time it's not really a business at all. They are brutal cash machines that properly reward shareholders.

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Bill Combs @billcombs Feb 9

So great, I'm glad to see any company reducing debt and BTI needs it. Overall I had BTI stock at -, but yesterday the green finally showed up :)

RR
Rickie Reeve @rickiereeve Feb 14

But it took time! I believe that the moment the buybacks start, it will only get greener.

AY
Alden Yap @aldenyap Feb 9

Those cigarettes will go down for me in the long run. I think the new generation and young people in general will follow in the footsteps of electro etc... They might have come up with a replacement by now although competing in this PM probably won't be easy. Or am I completely off base ? :D

RR
Rickie Reeve @rickiereeve Feb 14

Certainly the trend for conventional cigarettes will continue, but for many smokers the alternatives simply do not suit them. There are too many alternatives. Pouches, vapes, heated tobacco, snuff, patches...

PM has the upper hand in new products, but there is room for more players and products in the market. I like Vuse for example. I see it around a lot and even by the numbers it is popular.

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