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BAT aims to more than double its revenue from Next Generation smoking products by end 2018

Published: 07:36 25 Apr 2018 BST

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Burrows added: “And although trading conditions remain challenging, the Group remains on track for another good year of earnings growth."

British American Tobacco PLC (LON:BATS) aims to more than double its revenue from Next Generation smoking products to substantially more than £1bn by the end of 2018.

In a statement to be delivered at today’s annual general meeting, BAT’s chairman, Richard Burrows said: "Given the success of the Next Generation Product portfolio, the Group has decided to further increase investment plans behind Next Generation Products during 2018, with a significant number of roll-outs and launches planned towards the end of Q3.”

READ: BAT sales boosted by Reynolds acquisition, but organic volumes decline

He added; “And although trading conditions remain challenging, the Group remains on track for another good year of earnings growth, excluding the impact of currency translation.”

Burrows said that if exchange rates were to stay at current levels, the group would face a translational foreign exchange headwind of 7% on organic operating profit and 8% on earnings per share.

He added that, as previously announced, mainly due to volume shipment phasing and pricing in certain markets, including Russia, profit growth is expected to be skewed to the second half.

The chairman also noted that in Japan, the group’s tobacco heating product, glo, has now grown to a 4.3% share of the total market despite capacity constraints limiting the supply of heating devices.

He added: “We remain confident that these constraints will be removed during Q2.”

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