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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 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)
(Reporting by Richa Naidu in London and Siddharth Cavale in
Bengaluru; editing by Philippa Fletcher and Jason Neely)
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