British American Tobacco PLC (LON:BATS) has confirmed that its chief executive, Nicandro Durante intends to retire on 1 April 2019, after eight years as its boss, adding that it has identified a successor.
In a brief statement, the FTSE 100-listed firm said it has been considering successors for some time and, having reviewed a strong list of internal and external candidates over the past few months, it has identified a lead candidate to succeed Durante, who has been with the company for nearly 37 years.
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The cigarettes manufacturer added that it will make a further announcement in due course.
The outgoing CEO commented: “We now have a growing potentially reduced risk product business fully embedded in our organisation and the integration of Reynolds has been successfully completed. I shall stay in place for the next six months to ensure an orderly handover to my successor."
Sky News reported on Wednesday that Durante is likely to be replaced by an internal candidate, with chief operating officer, Jack Bowles regarded as the frontrunner, and chief marketing officer Andrew Gray also rumoured to be a contender.
Russ Mould, investment director at AJ Bell noted: “Times are changing for tobacco companies as the public increasingly shifts to e-cigarettes, and with that comes news that the UK’s largest quoted tobacco company, British American Tobacco, is also changing its chief executive.
“Nicandro Durante is bowing out after nearly 37 years with the business and seven years at the top. The 62-year-old is retiring next year and his successor will need to have a lot of answers for shareholders who have seen the value of their investment erode significantly this year.”
Lots of value wiped off
Mould added: “Nearly one-third of British American Tobacco’s value has been wiped off since January amid market concerns about tougher regulation, declining cigarette volumes, increased health awareness and decreasing social acceptance of smoking.
“Large tobacco companies like British American Tobacco have been investing in next-generation products to adapt to the changing market landscape, but competition has also been increasing.
“Durante’s successor, once appointed, will inherit a development plan that is far from in its infancy, so we may not see any radical changes, at least not in the early days of them taking the role.”
In late morning trading, BAT shares edged 0.06% lower to 3,558p.
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