What I like about BAT management is they don't seem to be lazy. Despite massive cash flows, the company remains efficiency oriented. They had quantum initiative, and reported significant savings achieved (I have no idea, and never found any information on how those savings were achieved), and what's more important, but nobody seems to notice, they constantly slash headcount.
2020 - 55,329 employees
2021 - 52,050
2022 - 50,397
2023 - 46,727
I wonder how long they can remain on this trajectory.
It's definitely a mix. As the company exits a host of markets throughout this year, volume declines are bound to look worse than if it had not. I expect some to focus on that while we over here will look at the P&L and the whole.
Nice find, I hadn’t noticed their headcount reduction. My only concern is whether they are more efficient or losing capabilities. For instance Altria has been massively slashing headcount since at least 2009, but one could argue that is partly responsible for their R&D failures and subsequent need to acquire Juul and then Njoy.
Can also think about the timings of acquiring JMC and UST and subsequent consolidation of manufacturing, winding down Philip Morris Capital Corp, and the divestiture of Ste. Michelle Winery.
What I like about BAT management is they don't seem to be lazy. Despite massive cash flows, the company remains efficiency oriented. They had quantum initiative, and reported significant savings achieved (I have no idea, and never found any information on how those savings were achieved), and what's more important, but nobody seems to notice, they constantly slash headcount.
2020 - 55,329 employees
2021 - 52,050
2022 - 50,397
2023 - 46,727
I wonder how long they can remain on this trajectory.
Some will be related to market withdrawals. Also factory closures due fewer sticks and maybe manufacturing automation.
It's definitely a mix. As the company exits a host of markets throughout this year, volume declines are bound to look worse than if it had not. I expect some to focus on that while we over here will look at the P&L and the whole.
Nice find, I hadn’t noticed their headcount reduction. My only concern is whether they are more efficient or losing capabilities. For instance Altria has been massively slashing headcount since at least 2009, but one could argue that is partly responsible for their R&D failures and subsequent need to acquire Juul and then Njoy.
Can also think about the timings of acquiring JMC and UST and subsequent consolidation of manufacturing, winding down Philip Morris Capital Corp, and the divestiture of Ste. Michelle Winery.
A very rational view, without any hype, but neither stock-price-induced fatality. Thank you.
+1. That's what I like from Devin, especially compared to what I might read on Seeking Alpha ("Buy This Cheap Dividend King!").
Thank you both. Your support means a great deal.