BAT sees full year driven by strong vaping sales

12th Jun 2019 07:10

(Sharecast News) - British American Tobacco on Wednesday said new product sales would accelerate in the second half as traditional cigarettes become less popular, adding that it was consolidating brands.The company, which faces a global decline in the use of traditional cigarettes as people switch to e-cigarettes and vapes, said it expected revenue growth to be in the upper half of its 3% - 5% forecastFirst half revenue growth in new products was approaching full year guidance, with an expected acceleration in the second half leading to growth around the middle of its 30% - 50% range, it said.BAT added that the growth in new category products would be driven by new product launches and focus on priority markets."We are creating a stronger, simpler business and driving a step change in new categories, built on the foundation of a strong combustible business," said chief executive Jack Bowles."With our focus on building global brands, we intend to consolidate our new category portfolio into fewer brands. We are on track for a good performance in 2019 with revenue and adjusted operating profit growth in line with our guidance.