British American Tobacco (BATS.L) has reported a 7% increase in adjusted annual revenue and a 1.0% growth in dividends to 217.8 pence. The company also announced a stock buyback plan of £2 billion for 2022.
This tobacco company has reportedly seen a 51% increase in sales of its "new category" product line, reaching £2.05 billion, which includes electronic cigarettes, heated tobacco, and oral nicotine products. While this sector has not yet generated any profits, British American Tobacco says it aims to achieve £5 billion in revenue and profitability by 2025.
The sustained growth of new product categories is the cornerstone of the long-term successful plan of British American Tobacco," said Third Bridge analyst Rosalind Eldred. "With over 1.1 billion smokers still using combustible tobacco, the opportunity to convert consumers to new categories is highly attractive.
With increasing attention on its tobacco heating devices and other electronic cigarettes, a tobacco company raised its annual revenue growth forecast in December last year, resulting in a 2% increase in its stock price. The tobacco company explained that, based on fixed exchange rates, it expects revenue growth to exceed 5%, higher than the previously expected range of 3% to 5% as of December, and maintains its expectations for growth in mid-term earnings per share after a one-time adjustment.
During the first quarter, British American Tobacco added 1.4 million new customers.
The London-based company has reported that the sales of their "new category" of low-risk products have been growing in all major markets, including the United States and Japan. The company gained 1.4 million new customers in the first quarter. "The upgrades and delivery of the low-risk products are particularly encouraging," said JPMorgan analyst Owen Bennett.
The manufacturers of Vuse e-cigarettes and Glo tobacco-heating products have announced that their customer base has increased by 1.4 million, bringing the total number of users to 14.9 million. However, this falls short of their goal of reaching 50 million e-cigarette users by 2025, as this only represents one-third of that target. If BAT is to achieve its goal, sales will have to continue to accelerate.
Statement:
This article is compiled from third-party information and is only intended for industry exchange and learning.
This article does not represent the views of 2FIRSTS and 2FIRSTS cannot confirm the truthfulness or accuracy of the content. The compilation of this article is only intended for internal industry discussion and research.
Due to limitations in our translation abilities, the translated article may not fully convey the same meaning as the original text. Please refer to the original text for accuracy.
2FIRSTS maintains complete alignment with the Chinese government on any domestic, Hong Kong, Macau, Taiwan, and international related statements and positions.
The copyright of the compiled information belongs to the original media and author. If there is any infringement, please contact us for deletion.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
