British American Tobacco Ireland reports: E-cigarettes account for 22% of total revenue in 2023, and VELO accounts for 3% of total revenue

British American Tobacco Ireland reports: E-cigarettes account for 22% of total revenue in 2023, and VELO accounts for 3% of total revenue

BAT Ireland reports that e-cigarette products account for 22% of total revenue in 2023, with VELO accounting for 3% of total revenue, but the company faces the risk of illegal e-cigarette trade and future increases in excise duty on e-cigarette oils.

According to RTE.ie on November 28, the directors' report of BAT Ireland (PJ Carroll & Company) pointed out that in 2023, the company's net income increased from 28.48 million euros to 30.53 million euros, an increase of 7%. The increase in sales of e-cigarette products helped the company's pre-tax profit increase by 23% to 6.18 million euros.

The highlights of the report are as follows:

The VELO nicotine pouch was launched in 2023, marking the company's entry into the "modern oral nicotine pouch" market. It accounted for 3% of total revenue within 6 months of its launch;

E-cigarette products accounted for 22% of total revenue in 2023;

Combustible cigarette sales fell 13% in 2023, but the manufacturer's price increase in March drove the overall growth of combustible cigarette revenue, accounting for 75% of total revenue;

After deducting 973,000 euros in corporate tax, the profit after tax was 5.2 million euros, and the accumulated profit at the end of the year reached 42.85 million euros;

Total revenue for the year was 181.32 million euros, including 150.79 million euros in excise and other taxes.

The directors said that the illegal e-cigarette trade and the government's poor enforcement of illegal product sales and sales of e-cigarettes to teenagers under the age of 18 were the main challenges facing the company.

The total share of illegal trade and taxable products (NIDP) in the combustible market is 34%, of which illegal cigarettes account for 19% of the market and NIDP accounts for 15%;

From the second half of 2025, the Irish government will impose a consumption tax of 0.5 euros per milliliter on e-cigarette oil, which will increase the price of all brands and may prompt consumers to turn to illegal products or even return to traditional tobacco.