By Michael Susin
British American Tobacco said a Canadian court approved its plan to settle outstanding litigation in the country.
The FTSE 100 cigarette maker--which houses the Kent, Dunhill and Lucky Strike brands--on Friday said that the Ontario Superior Court of Justice approved the plan of compromise and arrangement for its Canadian subsidiary Imperial Tobacco Canada.
The company said that the plan resolves all Canadian tobacco litigation, and the settlement will be funded by its subsidiary's funds and the profits generated from the future sale of tobacco products in Canada.
It will also allow the subsidiary to emerge from its creditor protection under the Canadian Companies' Creditors Arrangement Act since 2019.
The company had made 6.2 billion-pound ($7.99 billion) provision related to the proposed settlement in Canada, according to the company's latest earnings.
The sanction doesn't impact British American Tobacco's current guidance for 2025. It continues to see around 1% of revenue growth, and adjusted profit from operations--the company's preferred metric, which strips out exceptional and other one-off items--growth between 1.5% and 2.5%.
Write to Michael Susin at michael.susin@wsj.com
(END) Dow Jones Newswires
March 07, 2025 04:31 ET (09:31 GMT)
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