British American Tobacco sees revenue from alternatives falling short
Cigarette maker says revenue from alternatives will miss its £1 billion target
British American Tobacco says that revenue from alternatives to cigarettes will miss its £1 billion target by about £100 million. Photograph: Brendan McDermid/Reuters
The company’s forecast to beat the goal of high-single-digit percentage growth in adjusted earnings per share may be overshadowed by BAT’s statement that revenue from alternatives to cigarettes will miss its £1 billion target by about £100 million.
While revenue from vaping is rising more than 10 per cent, the key market for heated-tobacco products in Japan has gone flat. The company said it’s cutting back on stockpiles for year-end sales in that key market for the next-generation products.
Growth in traditional cigarettes is buoyed by higher prices, which will probably exceed the 5.5 percent increase of last year. Adverse currency shifts will probably reduce full-year earnings per share by about 7 per cent, BAT also said. The London-based tobacco company’s shares have fallen 34 percent this year amid a selloff of cigarette makers. They are trading near their lowest level in more than four years.