British American Tobacco (BAT) has reported its 2022 full-year results with revenue up 2.3 per cent, driven by new category growth and pricing.

“We continue to accelerate our A Better Tomorrow™ transformation at speed,” the company said in a press release.

BAT reported a 2.3 per cent year-on-year increase in revenues to GBP 27.655 billion and a 4.3 per cent increase in operating profits to GBP 12.408 billion on a constant currency basis for 2022.
New Categories revenue grew 37 per cent to GBP 2.813 billion with growth in Vapour (+43.8 per cent), THP (+26.7 per cent) and Modern Oral (+45.6 per cent). “Our New Category business delivered strong volume, revenue and market share growth and has become a significant contributor to the Group’s financial delivery. In 2022, we invested more than GBP 2bn in New Categories to drive long-term sustainable growth, while making excellent progress in reducing operating losses by 62 per cent,” said Chief Executive Jack Bowles. “Our results show that our strategy is working. We have strong, global New Category brands, targeted geographic expansion plans and an unwavering commitment to innovation that ensures we are delivering for the consumer. We now have 22.5 million consumers of noncombustible products and revenue from these products account for c.15 per cent of Group revenue.”

For 2023, BAT expects the global tobacco industry volume to decline by about 2 per cent and expects 3-5 per cent organic constant currency revenue growth, with reported growth impacted by timing of the transfer of the Russian and Belarusian businesses expected to close in 2023. “I am also pleased to confirm that we are in advanced discussions with a joint management-distributor consortium with a view to completing the transfer of our Russian and Belarusian businesses in 2023,” Bowles said.