British American Tobacco (LON: BATS) has warned that its full-year earnings growth has fallen 7%.
In a trading update released on Tuesday, the FTSE 100 company said blamed the fall in earnings on currency headwinds.
expected revenue from products including e-cigarettes and tobacco-heating devices is down from £1 billion to £900 million.
Chief executive Nicandro Durante said: “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.”
“At the same time, our combustible tobacco business continues to perform well. We remain on track for a strong performance in 2018,” he added.
Graham Spooner, investment research analyst at The Share Centre, said: “BAT is a share with an excellent long-term track record but it has come under pressure this year and hit a four-year low last week.”
“But overall the group stated that it continues to perform well and is still is confident to achieve good adjusted revenue growth mainly as a result of its strategic brand portfolio,” he added.
Shares fell 1.4% to 3,283p in morning trading. They are currently trading down 3.17% at 3,225p.
