British American Tobacco (BAT) expects good results for 2018, driven mainly by its key cigarette brands and sales growth in its Next Generation Product (NGP) portfolio, the multinational said in a press release ahead of investor meetings.

NGPs, which BAT refers to as ‘Potentially Reduced Risk Products’, are expected to generate GBP 900 million (EUR 1.02 billion) in revenues in 2018, the company said, adding that heated tobacco sales would lead revenue growth in NGPs. BAT said its glo heated tobacco platform had increased its market share in Japan to 4.4 per cent from 3.3 per cent this year, despite “flat” heated tobacco sales in the country. And BAT’s global vapour business is expected to deliver double digit volume growth, the company said.
The company said it was “performing well” in the US cigarette market, but that it expects US industry volume decline to be between 4 per cent and 4.5 per cent.
BAT CEO Nicandro Durante commented, “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.”