BAT takes a £436m hit after Canadian court ruling
Imperial Tobacco Canada plans to appeal the judgment at the supreme court
Bengaluru — British American Tobacco (BAT) said on Tuesday it would set aside £436m ($573.65m) in 2019, after a Quebec court upheld a 2015 decision that awarded smokers in the Canadian province about C$15bn ($11.29bn). BAT said its Canadian unit was required to place about £436m in escrow as part of the 2015 decision. The deposit, which was held as an asset on BAT’s balance sheet at the end of 2018, will now be charged as an adjusting expense in 2019, BAT said. It also said there will be no impact from the charge to adjusted net debt to adjusted ebitda (earnings before interest, tax, depreciation and amortisation) ratio or to 2019 cash flow. Canadian subsidiaries of BAT, Philip Morris International and Japan Tobacco International, are appealing a 2015 Quebec superior court ruling to award damages to about 100,000 Quebec smokers and former smokers who allege the companies knew since the 1950s that their product was causing cancer and other illnesses and failed to warn consumers adequ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.