Our current strategy focuses on driving performance in three key areas: Tobacco, Next Generation Products (NGP) and Cost and Cash.
In tobacco we maximise opportunities for our Asset Brands and priority markets. Through our NGP portfolio we are providing adult smokers with a range of potentially less harmful alternatives to cigarettes.
The approach we take to managing cost and cash provides funds to invest in the business and return to shareholders. Our sustainability strategy frames the way we manage our environmental, social and governance issues.
CEO Stefan Bomhard is currently leading a strategic review of the business, with an update to follow in a Capital Markets event on 27 January 2021.
We create value through two distinct business growth models, our Market Repeatable Model for tobacco and our Brand Adoption Model for NGP. Consistently applying these models to the right markets and the right brands is key for delivering quality growth. Our high operating margins drive the strong cash flows that are a hallmark of our business and although investment in NGP may initially dilute these margins we expect to see profitability improve over time. We use the cash we generate to reinvest to support growth, pay down debt or return to shareholders through dividends.
4Bs FOR NEXT GENERATION PRODUCTS
MARKET REPEATABLE MODEL FOR TOBACCO
SIMPLE MARKETS FOCUSED PORTFOLIO
SUSTAINABLE BRAND INVESTMENTS
ALWAYS ON PRICE STRATEGY
CORE RANGE EVERYWHERE, ALL THE TIME
TAILOR CUSTOMER SOLUTIONS
HONEST ACCURATE LEARNING
SIMPLE MARKET FOCUSED PORTFOLIO
Our Market Repeatable Model starts with a simple market focused portfolio that is built around an optimal number of brands and stock keeping units that are aligned with consumer needs. Our strongest offerings are our Asset Brands and we focus on driving their performance to generate quality market share growth.