On Tuesday, British American Tobacco (BATS.L) reaffirmed its year sales and profit estimates. However, it said it would focus on the second half, counting on steady demand for its vaping and oral nicotine products and higher prices.
Lucky Strike predicts 3% to 5% organic revenue growth at constant currency rates and mid-single-digit adjusted earnings per share growth in 2023.
BAT said the transfer of its Russian and Belarusian companies, slated to close in 2023, will affect revenue growth.
As consumers move to tobacco-free goods, BAT has benefited from its investment in e-cigarettes and heat-not-burn devices.
In the first quarter, 900,000 more people bought non-combustible items, but the U.S. combustible market slowed.
“Our performance in U.S. combustibles has been disappointing,” said recently hired CEO Tadeu Marroco.
“We are taking action, and while it will take some time to carefully and thoroughly implement our plans, our volume share has grown sequentially since the start of the year.”
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