BAT Reports Strong Business Growth in Next-Generation Products

Jun.08.2023
BAT Reports Strong Business Growth in Next-Generation Products
British American Tobacco reports strong growth in e-cigarettes and heated tobacco products, but warns of potential impact from business relocations from Russia and Belarus.

Recently, according to a report from news24, British American Tobacco (BAT) has released its half-year trading update and its stock price has remained stable. CEO Tadeu Marroco stated that the business revenue from electronic cigarettes and heated tobacco products has grown strongly, and once again confirmed that the company should be profitable by 2024.

 

The product portfolio of British American Tobacco (BAT) is well-balanced, featuring not only traditional cigarette brands such as Dunhill, Peter Stuyvesant, Rothmans, and Pall Mall, but also electronic and heated tobacco products, including Vuse, glo, and Velo.

 

The company still maintains a cash conversion rate of over 90% for operations, with the group expecting a mid-single digit increase in diluted earnings per share (calculated using a fixed exchange rate) and revenue growth of 3% to 5% for the full year. However, BAT has issued a warning that the projected growth may be affected due to the anticipated transfer of its Russian and Belarusian operations this year.

 

The company stated that their overall market share for cigarette sales has increased by 10 basis points in the last six months, despite disappointing performance in the American market.

 

The newly appointed CEO of BAT, Tadeu Marroco, has stated that the revenue growth of their e-cigarette and heated tobacco products is "strong" and has once again confirmed that the company should be profitable by 2024.

 

Our strategic goal is to gradually transform our product portfolio by actively encouraging adult smokers to switch to products with lower risks compared to smoking; this transformation will bring long-term value to multiple stakeholders.

 

However, BAT has also warned that its tobacco heating device brand, Glo, has seen a decline of over one percentage point in market share in key countries. Despite gaining market share in some European countries, it has faced intense competition from other products in the markets of Japan and Italy. According to market analysis, the main competitor for glo from British American Tobacco is IQOS from Philip Morris International.

 

The e-cigarette brand, Vuse, has seen a nearly three percentage point increase in market share, now holding a 39% share in the crucial e-cigarette market, and growth in the U.S. market.

 

In face of California's ban on the sale of most flavored tobacco products and e-cigarettes that took effect in December 2022, BAT has stated that the long-term impact of the flavor prohibition remains difficult to predict.

 

According to reports, mint-flavored products are continuing to be sold illegally due to lax law enforcement. We have also observed an increase in sales of flavored products in neighboring states.

 

Analysts believe that this may indicate a possibility of relaxation in the "flavor ban".

 

Currently, the disposable flavored electronic cigarette product, Vuse Go, is sold in 40 markets and is expanding sales in emerging markets such as Colombia and Peru. The initial results are "encouraging.

 

It is noteworthy that in the past year, the stock prices of BAT have dropped by 10%, which has left investors disappointed with the company's decision to suspend its new stock buyback plans.

 

Reference(s):

 

British American Tobacco maintains its profit outlook despite challenging conditions in the US cigarette market, despite suffering losses in its global operations.

 


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.

JTI’s Nordic Spirit Signs Co-op Live Partnership Ahead of New UK Nicotine Sponsorship Restrictions
JTI’s Nordic Spirit Signs Co-op Live Partnership Ahead of New UK Nicotine Sponsorship Restrictions
JTI nicotine pouch brand Nordic Spirit has entered a long-term partnership with Manchester’s Co-op Live, becoming the venue’s Official Nicotine Pouch Partner. The 23,500-capacity venue is the UK’s largest indoor live entertainment arena. Nordic Spirit will run in-venue activations for existing adult nicotine consumers and sell products at selected arena bars. The agreement was entered into before the relevant UK sponsorship restrictions were introduced, while the government intends to implement a comprehensive ban on advertising and sponsorship of vaping and nicotine products from June 1, 2027.
Sep.07
Ireland’s Vape Tax Raises €22 Million in Nine Months as Government Considers 2027 Budget Changes
Ireland’s Vape Tax Raises €22 Million in Nine Months as Government Considers 2027 Budget Changes
According to Irish media outlets Highland Radio and BreakingNews.ie, the Irish government is considering whether to adjust vape tax policy in the 2027 Budget. The tax has generated about €22 million ($24 million) in revenue during its first nine months. While no increase has been confirmed, the revenue performance could influence future fiscal discussions. Any tax rise could increase product costs and potentially affect retail prices.
Aug.12
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan files patent for cellulose-free nicotine pouch scaffold to replace microcrystalline cellulose
China Tobacco Yunnan Industrial Co., Ltd. has filed a patent application for a cellulose-free scaffold material for nicotine pouches, proposing a combination of bioceramic material, polydextrose and sugar alcohols to replace conventional microcrystalline cellulose and cellulose derivatives. The filing aims to address issues including powdery mouthfeel, residue and limited release control, while also reducing reliance on existing cellulose-based patent portfolios. In patent examples, one fast-release formulation reached a nicotine release rate of 50% at 10 minutes and more than 90% at 20 minutes.
Sep.02
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
From Product Innovation to Integrated Solutions: NEXTECH Expands Its Global Heated Tobacco Solutions
NEXTECH launched its NEXE Pro circumferential-heating tobacco stick globally at InterTabac 2026, as the company expands from product innovation into broader heated tobacco solutions. Amid intensifying competition across global HTP markets, NEXTECH is strengthening its R&D, manufacturing and pre-launch support capabilities to serve different types of business customers.
Industry Insight
Sep.15
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-Listed Consumer Goods Group Supreme Sees Vape Duty as Potential Consolidation Opportunity, Holds FY27 Outlook
UK-listed consumer goods group Supreme plc says it continues to expect FY27 trading to meet market expectations as the Vaping Products Duty takes effect on October 1, while maintaining a comparatively positive view of the new tax and compliance regime. Supreme has said the framework could increase compliance complexity for smaller operators and contribute to market consolidation, while its manufacturing, compliance and distribution scale may allow it to gain share. Its 88Vape brand will retain its value positioning.
Sep.18
Special Report | Can Nicotine Be Replaced? 6-MN Is Already on the Market While Key Human Evidence Is Still Missing
Special Report | Can Nicotine Be Replaced? 6-MN Is Already on the Market While Key Human Evidence Is Still Missing
Nicotine analogues such as 6-methylnicotine are already appearing in e-cigarettes and oral pouches, even as key human evidence remains limited. A new Nixodine-S study adds nonclinical data showing differences from nicotine in cytotoxicity and receptor activity, while independent studies point to a more complex toxicological picture. With supply-chain activity growing and FDA seeking clearer authority over nicotine analogues, the industry now faces a larger question: what evidence is needed before these substances can credibly replace nicotine?
SCIENCE
Sep.23