British American Tobacco (LON: BATS) has raised its full-year revenue guidance.
Previously, the group estimated a 3% fall in revenue. The expected fall in revenue is now 2.5%. Meanwhile, global cigarette and tobacco sales are expected to fall by a smaller 5%.
Jack Bowles, the group’s chief executive, said in a statement: “We are transforming our business in order to build A Better Tomorrow. Reducing the health impact of our business through providing a range of enjoyable and less risky products is the
greatest contribution we can make to society. We continue to be clear that combustible cigarettes pose serious health risks, and the only way to avoid these risks is not to start or to quit.
“British American Tobacco encourages those who would otherwise continue to smoke to switch completely to
scientifically substantiated reduced risk alternatives. We are growing our New Category
business as fast as possible and we are proud to now have around 13 million non-combustible
product consumers. We are continuing to increase investment in our three New Categories of
potentially reduced risk cigarette alternatives, capitalising on our momentum, while continuing
to deliver on our financial commitments.”
British American Tobacco has seen strong trading in the US market with continued strong value share performance.
The group has announced a dividend pay-out ratio of 65%.