Our economic impact A worldwide influence As one of the world’s most international businesses, our economic contribution stretches from a local to a global level. We sell brands in more than 200 markets worldwide, with 44 factories based in 41 countries. Our Group employs more than 57,000 people, with many more people indirectly employed through our supply chain, including suppliers, contractors, distributors and retailers, as well as over 100,000 directly contracted tobacco farmers. TOTAL 2014 REVENUES £43,331m Net sales plus revenues from financial investments and sales of assets Economic value distributed £43,233m £6,791m Operating costs Payments to suppliers, non-strategic investments, royalties and facilitation payments £2,343m Employee wages and benefits Total monetary outflows for employees (current payments, not future commitments) £4,100m Payments to providers of capital All financial payments made to the providers of capital £29,985m Payments to governments Excise and other taxes £13.9m Community investments Voluntary contributions and investment of funds in the broader community (includes donations) Economic value retained £98m Calculated as revenues less economic value distributes (investments, equity release, etc.) Economic impact studies Our companies’ commission operational and economic impact assessments on an ad hoc basis to meet local business needs. The assessments undertaken in 2014, and their findings, are described in more detail below: Colombia Our company in Colombia undertook an ‘Operational Impact Assessment’ to highlight the nature and impact of the more than $COP100 billion pesos (£30.4 million) invested in its tobacco leaf business. This investment was focused on financing for growers; developing green tobacco and improving the competitiveness of growers; export losses taken on by BAT as a result of a local acquisition; and tobacco purchases and operational funding for tobacco agencies that act as bridge to growers throughout Colombia. The assessment also identified the impact of tobacco crops in the country, chiefly that: Tobacco represents approximately 70% of a farmer’s income; One hectare of tobacco is 80% more profitable than beans or rice; and In each season, one hectare of tobacco generates income equivalent to double the national minimum wage. Pakistan Our company in Pakistan commissioned the independent research and information business, Neilsen, to assess the economic contribution of the tobacco industry in Pakistan. The report found: Approximately 75,000 farmers grow tobacco in the country and more than 240,000 people derive their living from it, generating an annual income of Rs.15 billion (£90 million). Manufacturing employs over 72,000 people and more than 245,000 derived their living from it, generating an annual income of Rs.22 billion (£132 million). Approximately 200,000 jobs are supported in the cigarette retail/distribution sectors, in over 500,000 outlets, with a further 700,000 people deriving their living from it, generating an annual income of Rs.21 billion (£126 million). The cigarette industry contributed more than Rs.75 billion (£450.8 million) in taxes in 2012-13. Papua New Guinea Our company in Papua New Guinea (PNG) commissioned an assessment by Ernst & Young LLP into the economic contribution of BAT’s operations in the country. The report, published in February 2014, concluded that BATPNG’s operations in 2012 generated PGK 473 million (£111.7 million) in revenue and PGK 268 million (£63.3 million) in excise taxes, making a total direct economic contribution of PGK 740 million (£174.7 million). This activity represents approximately 4% of PNG’s Gross Domestic Product (GDP) and equates to, and exceeds, that generated by other major industries such as canning, palm oil, vehicles and tyres. BAT directly employs 247 people in skilled operational jobs and the report highlighted that this increases spending power for the local population through a further 699 indirect jobs created by the company’s activity. Further, the tax revenues raised on BAT’s sales directly contributed to approximately 2% of total government revenues via excise duties. Poland In 2014, two reports were produced by Polish employers’ associations, of which BAT Poland is a member, into excise taxes and illicit tobacco products in the country. The first, by ZPP (Entrepreneurs and Employers Association), concluded that the excise tax regime is the second largest source of income for the Polish State. In 2013, the excise on tobacco products generated government revenues of PLN 18.2 billion (£3.5 billion), plus a VAT contribution of PLN 5.1 billion (£981.9 million). The second report, by Pracodawcy RP (Employers of Poland), identified the economic contribution from the tobacco industry in Poland and highlighted the ‘grey’ economy related to illegal tobacco products, which is estimated to be 25% of the entire market. The resulting loss to the public purse in 2013 was PLN 4.6 billion (£885.7 million). South Africa Our company in South Africa commissioned Quantec, an independent economic research company, to assess the contribution of the company to the national economy. The report concluded that BAT South Africa has a strong focus on skills development and training, social and economic empowerment, community engagement and job creation amongst those with lower skills levels. It showed that, in 2013, BAT South Africa had a share of more than 80% of the legal cigarette market, with sales of R11.8 billion(£660.6 million), excluding indirect taxes (£660.6 million), a workforce of 2,715 and tax contribution in excess of R13.5 billion (£755.8 million). This amounted to approximately 1.5% of South Africa’s total tax take for that year, which is 1.5 times larger than the total amount spent by national and local government on job creation programmes. When standard economic multipliers were applied, it also showed that BAT South Africa and its supply chain sustained production to the value of R35.2 billion (£1.97 billion), supporting 75,000 jobs and labour income of R6.1 billion (£341.5 million). BAT South Africa purchased goods and services to the value of R6.2 billion (£347 million), chiefly through agriculture, transport and storage, retail and wholesale, wood, paper, publishing, print and business services. For every job sustained by BAT South Africa, 26 additional jobs are created in the rest of the economy, of which 86% are from previously disadvantaged backgrounds. The company has also invested R200 billion ((£11.2 billion) in employee training and development over the four years leading up to 2013 (equivalent to 6.8% of its 2013 payroll). At 3.65, the company’s labour/capital ratio is well above the national average of 2.23 (measuring the number of jobs created for every R1 million (£55,986) of capital investment). Sri Lanka Our company in Sri Lanka commissioned the independent research and information business, Neilsen, to assess the economic contribution of the Sri Lankan tobacco industry. It concluded: 6,500 direct and 26,000 indirect jobs were supported in the farming sector, generating an annual income of Rs1.8 billion (£8.4 million). The manufacturing sector maintained more than 19,000 direct and 75,000 indirect jobs with an annual income of Rs90 billion (£418.3 million). The tobacco retail sector created more than 35,000 direct and 135,000 indirect jobs with a value of Rs5 billion (£23.3 million). The total tax generated was more than Rs76.5 billion (£355.6 million). Uzbekistan In Uzbekistan, our business commissioned the Institute of Forecasting and Macroeconomic Research to assess the role and place of the tobacco industry in Uzbekistan’s economy with a particular focus on the BAT business. It identified the investments made by the company since its formation in 1994, including a US$100 million (£60.7 million) factory in Samarkand, which produces approximately 16 billion cigarettes each year. The study showed that, over the past three years, BAT has been one of the largest taxpayers in the country, paying some UZS225 billion (£59.2 million) in taxes, excise taxes and customs duties to the state budget each year, equating to 1.3-1.5% of public revenues. Zimbabwe In Zimbabwe, the 2013 Tobacco Industry and Marketing Board’s statistical report identified a 31% increase in the number of active registered tobacco growers in the country, taking the total to 78,579. Communal and resettled farmers accounted for 82% of all growers. The value of the tobacco sold also increased by 16% in volume and value to ZWD612.1 million (£982.9 million). Sustainability Summary 2014 Download the Report PDF or interactive Sustainability app for iPads and Android tablets About us Who we are A sustainable approach Our economic impact People and culture Meet the Board Corporate governance Policies, principles and standards Search BATS: LSE GBp 3664.50 (-63.50) About us Sustainable business Our industry Challenges and opportunities How we work From crop to consumer Our products Putting consumers first Innovation Tobacco and beyond Sustainability Investors Media Reporting Careers Contact us Worldwide Home About us A sustainable approach Our economic impact Explore our world We are one of the world’s most international businesses and many of our Group companies have their own websites. @BATPress BAT Science @BAT_Sci Thinking of a change of job for your #newyearsresolution? Choose us. ow.ly/WaQkz #BringYourDifference 07 Jan Reply Retweet Favorite Reynolds American @RAI_News RAI creates subsidiary focused on vapor and nicotine product innovations; names Carolyn Hanigan as president reynoldsamerican.com/About-Us/Press… 06 Jan Reply Retweet Favorite Investors Current UK share price 3664.50p -63.50p 08/01/2016 02:04 Our reporting Contact us +44 (0) 20 7845 1000 British American Tobacco p.l.c. Globe House 4 Temple Place London WC2R 2PG © British American Tobacco Accessibility Conditions of use Financial information Privacy policy Cookie policy Site map