British American Tobacco (LON:BATS) shares edged up slightly at market open on Tuesday, after it confirmed trading in line with expectations but warned on currency pressures going forward.
The group said it expected earnings growth to come under pressure amid a stronger pound going into the second half of 2018, with first half earnings per share also expected to be impacted by a currency translation headwind of 9 percent.
Lower industry volume in the US is also likely to hit revenue in the first half, despite the group setting to benefit from US tax reform.
The cigarette maker updated markets on Tuesday ahead of the release of its half year results on July 26. Looking ahead, it aims to grow its market share to next generation products (NGPs), aided by significant funding from US tax reform benefits.
Shares in British American Tobacco are currently 0.78 percent at 3,775.82 (0814GMT).
