The tobacco company has also reported 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 products. Despite the fact that this division has not generated any profit yet, BAT said that 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.”
As the company’s focus on its tobacco-heating devices and other e-cigarettes is increasing, last December the tobacco company raised its annual revenue growth forecast, sending its shares up by 2%. The tobacco company explained it had expected revenue growth of over 5% at constant currencies, above its previous range of 3% to 5% for the year up to December, and stuck to its growth expectation for adjusted earnings per share in the mid-single digit range.
BAT added 1.4 million new customers in the first quarter
The London-based company said that sales of its “new category” reduced risk products are growing in all key markets, including the United States and Japan, with the company adding 1.4 million new customers in the first quarter. “The upgrade and delivery around reduced risk products is particularly encouraging,” said Jefferies analyst Owen Bennett.
The manufacturer of Vuse e-cigarettes and Glo heated tobacco products, revealed a 1.4 million increase in customers of the products, meaning that users of these products have now totaled 14.9 million. However this is less than a third of its target of reaching 50 million users of vaping products by 2025, and sales will have to continue picking up pace if BAT is to achieve this goal.
Read Further: Reuters
