British American Tobacco eyes 50m smokeless customers
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British American Tobacco has lifted guidance for sales of its smokeless products as demand for the group's vapes and nicotine care home continues to grow. The Rothmans and Lucky Strike owner continues to expect its turnover and adjusted profits from operations to expand by a 'low-single figure' percentage this year.
Revenues from traditional tobacco products and new categories are also expected to be up over the latter six months of 2024 compared to the first half. The FTSE 100 group said that vaping brand Vuse has maintained dominance across the world's top vapour markets, such as the UK, Germany, and the US.
BAT also noted that its Velo nicotine pouches enjoyed strong volume, sales and profit growth thanks partly to the brand launching in the UK and Poland. However, the firm said Vuse and combustibles demand in the US remains affected by the widespread use of illegal vapour products.
Upheld: British American Tobacco reiterated its annual guidance on Wednesday amid growing demand for smokeless products. Like other cigarette sellers, BAT is gradually expanding its alternatives in response to enhanced public awareness of tobacco's downsides.
It aims to have 50 million consumers using its non-combustible goods, such as vapes and tobacco heaters, by 2030 and derive at least half of its sales from them by 2035. Tadeu Marroco, chief executive of BAT, said: 'Our quality growth imperative is delivering higher returns on more targeted investments across all three new categories.
