BAT's Non-Combustible Products Boost Sales in 2022
Jack Bowles, CEO of British American Tobacco, stated in a trading update that the company gained 3.2 million consumers in its non-combustible business during the first nine months of 2022, thanks in part to the launch of new products and expansion into new regions.
According to BAT, its new category business continues to drive strong sales, revenue and market share growth, and has become an important contributor to the group's performance.
By September 2022, Vuse electronic cigarettes had achieved a global market value share of 35.7% in major e-cigarette markets, which represents a growth of 2.2 percentage points compared to the full year of 2021. In the United States, the brand's market share expanded by 6.8 percentage points, leading to a total value share of 39.3%.
By September 2022, the category market share for Glo tobacco heating products (THP) of British American Tobacco and Philip Morris International has increased by 1.6 percentage points to reach 19.5% in major THP markets. In Europe, Glo has achieved a sales market share of 20.4% in major THP markets, a growth of 4 percentage points. In Japan, Hyper has increased Glo's total nicotine sales market share by 50 basis points from 2021 to reach 7.3%.
BAT's Velo brand of nicotine pouches for oral consumption has captured a sales market share of 69.1% in Europe.
At the same time, British American Tobacco reported that its value share in combustible cigarettes remained stable, with growth in the United States, Asia-Pacific and Middle East offset by declines in its Americas, Sub-Saharan Africa and European regions. Bowles stated that in the United States, BAT started a new sales strategy in the second half of the year to counter "early signs of accelerating price discounting.
British American Tobacco has reiterated its guidance for a fixed exchange rate calculation of a mid-single digit percentage increase in earnings per share this year. The company believes that price hikes and marketing campaigns will offset the impact of rising raw material prices.
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