Key Takeaways

  • British American Tobacco, the owner of the Lucky Strikes brand, announced in a press release on Thursday that it has appointed former company executive Dragos Constantinescu as Chief Financial Officer and Executive Director, effective September 1.
  • Constantinescu will succeed interim CFO Javed Iqbal, who will step down on the effective date. According to the press release, Iqbal will continue to serve as Digital and Information Director of the London-based tobacco company after his tenure as interim financial head.
  • Constantinescu joined BAT for 16 years before moving to Asahi Group Holdings as Managing Director. CEO Tadeu Marroco said in the press release that Constantinescu will assume the CFO role at "an important stage in BAT's transformation," and that "his international experience and deep understanding of BAT will be key assets as we continue to focus on high-quality growth, sustainably deliver our medium-term growth targets, and maintain robust cash returns."

Deep Dive

According to Constantinescu's LinkedIn profile, during his previous 16-year tenure at the company—which owns cigarette brands such as Camel and Lucky Strikes, as well as vapor products like Vuse—he held roles including Regional Director for Central and Northern Europe, General Manager for Poland, and Corporate Finance Director for Western Europe.

After seven years away, he will return to the tobacco company. He previously worked at Asahi Group Holdings, a London-based food and beverage company, most recently serving as CEO of Asahi Europe & International.

Constantinescu's appointment marks the latest CFO change at the global tobacco company. As previously reported by CFO Dive, the company announced in April last year that its finance chief, Soraya Benchikh, stepped down after approximately 15 months in the role. Iqbal first joined BAT in 1996 and has served as a director since then, having twice acted as interim CFO.

The CFO transition comes as the company advances its "A Better Tomorrow" strategy, which aims to "migrate" smokers from cigarettes to smoke-free tobacco products. According to the company's description of the plan, the strategy is designed to reduce the "serious health risks" of combustible tobacco and create long-term value for shareholders.

In his statement in Thursday's press release, Constantinescu said: "BAT has a clear transformation strategy and is building positive momentum in its transition toward 'A Better Tomorrow.' I look forward to working with Tadeu, the Board, and the management team to help shape and support BAT's strategic priorities during this transformation, while ensuring disciplined execution and strong shareholder returns."

BAT's new product lines, including its "smoke-free" segment, continue to deliver strong growth. This segment encompasses three global brands: glo heated products, Vuse vapor products, and Velo oral nicotine pouches. According to financial results released on February 12, sales from these products now account for more than 18% of the group's total revenue, up 70 basis points from 2024. The company currently has 34.1 million users of smoke-free brands.

The company's continued focus on "smoke-free" products also comes as the tobacco industry faces stricter regulatory scrutiny, particularly in the European Union. Currently, two directives on tobacco products and advertising are under review: the Tobacco Products Directive (TPD) and the Tobacco Advertising Directive (TAD).

The TPD, which came into force in 2016, covers "the manufacture, presentation, and sale of tobacco," including smoke-free tobacco and e-cigarette products, according to the European Commission's website. In a report published on April 1 assessing the impact of both directives, the Commission highlighted emerging public health risks posed by "novel" and traditional tobacco products, including heated tobacco and nicotine pouches.

"These products pose a particular threat to younger generations, who face risks of nicotine addiction and long-term health consequences, especially given their appeal and active online promotion," the Commission said in the report's summary. The Commission noted plans to propose revisions to EU tobacco control legislation this year.

BAT responded to the report on April 2, warning that the EU "may fail to achieve its 2040 smoke-free goal if political decisions override evidence." In its response, BAT wrote: "The report acknowledges that it cannot clearly isolate the effects of specific policy measures and admits that it did not assess the impact of 'external factors' (such as consumer preferences or the availability of smoke-free alternatives) on smoking rates." The response listed six "key concerns" the global tobacco company has with the assessment.