Full-year guidance at British American Tobacco remains on track, revealed the group in a trading update.
British American Tobacco released a trading update on Wednesday, confirming expectations to exceed the target for high single-digit growth in adjusted earnings per share for the year.
“We remain on track for a strong performance in 2018 – driven by both our combustible and potentially reduced risk products businesses,” said Nicandro Durante, the chief executive.
“In the US, we are performing well, with positive pricing and continued value share growth. Our deleveraging remains on track and we remain committed to a dividend payout ratio of at least 65%”.
“We expect to exceed our high single-figure adjusted diluted earnings per share growth at constant rates of exchange.”
The group, which owns brands including Dunhill and Lucky Strike, has also stood by expectations that cigarette alternatives will reach £900 million of revenue this year.
“I am delighted with the progress we are making with our Potentially Reduced Risk Products business and we have a great pipeline of new product launches over the coming months which will build on this success,” said Durante earlier this year.
Shares in British American Tobacco have fallen almost 47% this year, amid the uncertainty around menthol cigarettes menthol in the US.
In other news from the group, Lionel Nowell will retire from the board with effect from 12 December 2018.
Shares in the group (LON: BATS) are trading +1.96% (1351GMT).