Chairman Richard Burrows at British American Tobacco (BAT) has announced that the company anticipates another year of good earnings growth in 2019, despite investor sentiment being adversely influenced by concerns over possible regulation in the US and competitor dynamics in new categories, according to a company press release.

Burrows reported that 2018 results indicate that the business is in “good shape”. According to the statement, BAT’s revenues in vapour and tobacco heating products nearly doubled this past year, with a 26 per cent increase in its vapour category and an over 180 per cent increase in its tobacco heating products category.
“In the combustible category, our overall market share increased 40 basis points, powered by the strong performance of our Strategic Portfolio which grew volume by 4.8 per cent,” Burrows added.
“Against a backdrop of a strong set of results and consequently rising share price, all of this, I believe, puts us is a strong position to deliver long-term sustainable growth, reflected in our continued annual dividend increases, this year’s of 4 per cent,” Burrows said.
The company expects its combustible products to continue to generate “the bulk of our revenues and profit” in coming years, and that “these profits will drive sustainable returns and dividends for [. . .] shareholders," as BAT continues to invest in its potentially reduced-risk products business.