SUP, BATS, IMB: 3 LSE listed vaping product makers in focus

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 SUP, BATS, IMB: 3 LSE listed vaping product makers in focus
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Highlights 

  • Local Government Association (LGA) has asked the UK government to reduce VAT on vaping products like E-cigarettes.
  • Vaping products like e-cigarettes come under the category of next-generation products, and the market for such products has been growing consistently.

Local Government Association (LGA) has asked the UK government to reduce VAT on vaping products like E-cigarettes, Vapes, e-pipes, and others to make these products more affordable, which could help people quit smoking.

LGA, a national membership body made up of English and Welsh councils, said past evidence suggests that e-cigarettes help reduce smoking habits. Hence, VAT on such products should be reduced from 20% to 5%, bringing them in line with other products and encouraging people to quit.

Vaping products like e-cigarettes come under the category of next-generation products. The market for such products has been growing steadily as people switch from tobacco-related products to less harmful vaping products. Many traditional tobacco companies like British American Tobacco and Imperial Brands Plc have successfully launched their e-cigarette brands.

 3 E-cigarettes stocks in focus

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Let us look at 3 FTSE listed tobacco companies operating in e-cigarettes markets:

Supreme Plc (LON: SUP)

FTSE AIM-listed company is engaged in the manufacturing and supply of vaping products. It operates under the 88Vape and Kik brand name and supplies its products to supermarkets, wholesalers, and retailers. It is one of the largest liquids makers for e-cigarettes and sells vaping accessories and hardware kits.

For the six months ended 30 September 2021, the company reported total revenue of £61.1 million, while its gross profits rose by 27% to £18.1 million.

Supreme Plc’s last close was at GBX 176 on 08 March 2022, with a market cap of £205.2 million.

British American Tobacco Plc (LON: BATS)

The company has been offering tobacco-related products for many years. However, the company entered the e-cigarettes market in 2012 by launching its flagship e-cigarettes brand and was able to capture a good market share.

Over the years, the company has acquired many smaller e-cigarettes companies and developed its product offering under the Vuse brand name. The company reported total revenue of £25,684 million, while its revenue from the new category product rose by 50.9% to £2,178 million for the year ended 31 December 2021.

British American Tobacco Plc’s last close was at GBX 2,979 on 08 March 2022, with a market cap of £68,220 million.

Imperial Brands Plc (LON: IMB)

The UK-based company manufactures and sells tobacco-related products. It also offers new products like e-vapour and heated tobacco products.

Its flagship e-cigarettes brand is Blu. The company reported total revenue of £32,791 million for the year ended 30 September 2021. Its operating profit was up by 15.2% to £3,146 million.

Imperial Brands Plc’s last close was at GBX 1,492 on 08 March 2022, with a market cap of £14,123 million.

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