Latest News

BAT sales jump on vaping, oral nicotine; announces 2 billion stg buyback


© Reuters. FILE PHOTO: A man smokes an e-cigarette in the queue to Canary Wharf tube station in London, Britain, November 27, 2019. Picture taken November 27, 2019. REUTERS/Kevin Coombs

LONDON (Reuters) -British American Tobacco on Friday reported a 7% rise in full-year adjusted revenue to 25.7 billion pounds ($34.8 billion), helped by sales of e-cigarettes and oral nicotine.

The world’s second-largest tobacco company also announced a dividend increase of 1.0% to 217.8 pence and a 2 billion pound share repurchase programme for 2022.

It posted a 51% rise to 2.05 billion pounds in adjusted sales of its “new categories” product line which includes e-cigarettes, heated tobacco and oral nicotine. Though the division has yet to turn a profit, BAT (LON:BATS) said it was on track to report revenue of 5 billion pounds and profitability by 2025.

“Continued growth in new categories is a cornerstone of BAT’s long-term plans for success,” Third Bridge analyst Ross Hindle said. “With over 1.1 billion smokers still using combustibles, the opportunity to convert consumers towards New Categories is highly attractive.”

The company said 4.8 million more consumers than last year used non-combustible products such as Vuse e-cigarettes, glo heated tobacco and Velo oral nicotine.

BAT said it expects global tobacco industry volumes to decline by around 2.5% this year. For 2021, the company had estimated those volumes to remain flat.

Before adjusting items and including the dilutive effect of employee share schemes, adjusted diluted earnings per share (EPS) fell 0.8% to 329.0 pence from 331.7 pence.

The maker of Lucky Strike and Camel cigarettes said it expects constant currency revenue growth of 3%-5% this year, and high-single figure constant currency adjusted EPS growth, weighted towards the second half of the year.

BAT shares, which have risen more than 20% in the past year, were flat in morning trade.

($1 = 0.7388 pounds)

BAT sales jump on vaping, oral nicotine; announces 2 billion stg buyback

Disclaimer:Fusion Mediawould like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Wall Street Opens Higher After Absorbing Inflation Shock; Dow up 170 Pts

Previous article

Diabetes device maker lands crucial FDA approval after a year of Covid delays

Next article

You may also like


Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News