1 minute read
Alternatives to traditional cigarettes to drive good growth at tobacco giant
by cityam
LAURA MCGUIRE
CIGARETTES giant British American Tobacco (BAT) said yesterday it expected a three to five per cent uplift in revenues thanks to continued investment in so-called alternative products. Shares jumped in early trading and settled up more than one per cent at the close.
During the quarter the group welcomed 900,000 new customers via sales of alternatives such as vapes.
However, sales in its combustible products, such as traditional cigarettes, fell off in its US market, as smoking continues to prove unfavourable with consumers.
BAT said it is on track to deliver £5bn of revenue in the next two years, but revenue growth would be impacted by its decision to transfer its Russian and Belarussian businesses.
“We are making good progress towards de-leveraging our balance sheet, supporting our ambition to... return excess cash to shareholders,” said boss Tadeu Marroco.
There was no change to guidance and Panmure Gordon analyst Rae Maile said BAT’s update went down well with markets.
