BAT Performing Despite Uncertain Environment

Maintaining its 2020 guidance, British American Tobacco said it expects constant currency adjusted revenue growth to be at the high end of the 1-3 percent range this year.

“We are growing our ‘new category’ business as fast as possible and we are proud to now have around 13 million non-combustible product consumers,” said BAT CEO Jack Bowles in a trading update. “We are continuing to increase investment in our three new categories of potentially reduced risk cigarette alternatives, capitalizing on our momentum, while continuing to deliver on our financial commitments.”

Bowles said BAT remains committed to it 2025 new category revenue ambition of £5 billion ($6.73 billion). “While the environment remains uncertain, due to the continuing challenges of Covid-19, the business is performing strongly,” he said.

According to BAT, Vuse is now the fastest growing international vapor brand, growing at 7 percentage points versus fiscal year 2019 to a 26 percent value share in the year to September in the world’s top-5 vapor markets.

BAT’s Glo tobacco heating device has reached a 5.9 percent volume share of total nicotine in Japan.

Meanwhile, the Velo and Lyft modern oral brands have consolidated their leadership in many international markets. In the U.S., BAT boosted its modern oral portfolio with the acquisition of Dryft, expanding the product range from four stock-keeping units to 28, with representation in the above 6mg segment and additional flavors.

“Reducing the health impact of our business through providing a range of enjoyable and less risky products is the greatest contribution we can make to society,” said Bowles. “We continue to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit. BAT encourages those who would otherwise continue to smoke to switch completely to scientifically substantiated reduced risk alternatives.”