The Group announced a public tender offer to acquire the remaining 24.7% share in Souza Cruz, reflecting strategic intentions to consolidate ownership and enhance operational efficiencies.

Target Information

The Group has demonstrated resilient performance in the first quarter of the year, with revenue growth of 1.7% at constant exchange rates, despite a reported decline of 5.8% at current rates of exchange. Cigarette volumes from subsidiaries saw a decrease of 3.6%, totaling 152 billion units, while the Group achieved a strong market share growth of 40 basis points, primarily through its Global Drive Brands that collectively witnessed a volume increase of 5.7%. This positioning reflects the Group's effective management strategy, enabling it to navigate challenges in the current trading environment.

Nicandro Durante, the Chief Executive, noted that continuous progress in next-generation products remains a focus for the Group. The ongoing strategic pricing efforts have allowed the Group to counterbalance lower cigarette volumes, thereby maintaining confidence in delivering robust earnings growth as the year progresses.

Industry Overview

The international tobacco industry is currently facing significant challenges, particularly due to rising consumer inflation and fluctuating exchange rates impacting trading performance. The decline in cigarette volumes across major markets, including Brazil, Russia, and Vie