British American Tobacco PLC (LSE:BATS) forecast full-year revenue growth of 2% to 4% supported by increased usage of e-cigarettes and oral nicotine products.
“New product launches and innovations, supported by further geographic expansion, have enabled the addition of another 3.2mln consumers within our non-combustible franchise in the first nine months, reaching 21.5mln,” commented chief executive Jack Bowles.
In a trading update, the international tobacco group said it expects mid-single figure adjusted diluted EPS growth at constant currency, including a transactional forex headwind of around 2%.
Net finance costs are expected above £1.6bn, driven by rising interest rates and the strength of the US dollar.
In its traditional cigarette business the group said value share was flat in the year to September with gains in the US and Asia offset by falls in Europe and Africa.
But US industry volumes are expected to fall in the second half reflecting increasing macro-economic pressures.
Operating margins are set to improve despite rising inflation supported by robust pricing, while BAT forecast its three-year Quantum programme would deliver in excess of £1.5bn annualised cost savings by the end of 2022.