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(Alliance News) - British American Tobacco PLC on Tuesday said it expects this year will be a "pivotal" one for the business as it upgraded revenue guidance.
The cigarette maker now expects constant currency revenue growth of above 5% for 2021, ahead of prior guidance of 3% to 5%.
For combustibles, BAT said group value and volume share are both up 10 basis points in the year-to-date, with full-year cigarette volumes expected to be ahead of the industry, which itself is expected to be down 3%.
Meanwhile, BAT reported accelerating addition of non-combustible product consumers, up by 1.4 million to 14.9 million in the first quarter. BAT said sales of non-tobacco products, such as vapes, had seen "growing momentum" as customers turn to less harmful products.
Its Velo brand, which makes nicotine pouches, grew its market share to around 40% while BAT's vaping brand Vuse reached around 31% of market share. Tobacco heating products brand Glo saw strong volume share growth for the year, now up to about 16% of the market.
Mid-single digit adjusted diluted earnings per share growth on a constant currency basis is also expected.
"We are accelerating our transformation with increased investment capitalising on our growing momentum in the New Categories, and a record quarter for consumer acquisition. This, together with our strong business performance, is reflected in our upgraded group revenue growth guidance of above 5% for 2021," said Chief Executive Jack Bowles.
"The momentum across the business is strong, and I am excited about the future for BAT."
Looking ahead, BAT said it is forecasting volume recovery and share growth in emerging markets including Bangladesh, Pakistan and Vietnam. While strong constant currency revenue growth in the US is expected, driven by a strong price mix.
BAT shares were trading 2.2% higher in London on Tuesday morning at 2,838.50 pence each, while in Johannesburg, the stock was 2.5% higher at ZAR544.47 a share.
By Will Paige; willpaige@alliancenews.com
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