British American Tobacco (BAT) reaffirmed its 2022 guidance for revenue and earnings growth.

For the full year, the company expects a revenue growth of 2 to 4 per cent at constant currency. BAT also continues to project a mid-single figure adjusted EPS growth at constant currency. By applying current foreign exchange rates, the tobacco company would expect a translation tailwind of 2 per cent on adjusted diluted EPS growth for the first half and 5 per cent for the full year.
BAT expects further growth in its non-combustible product consumer base which reached 19.4 million in Q1. Performance is expected to include continued New Category investment, with over GBP 1 billion invested in the first half, building strong global brands and capitalising on BAT’s momentum. The global tobacco industry volume is expected to be c.-3 per cent (previously c.-2.5 per cent) due to the macro-economic impact of continuing global uncertainty over Ukraine and Russia.
Vuse global value share is up 1.1 ppts April YTD vs. FY 2021, reaching 34.4 per cent. THP category volume share is up 1.5 ppts in the Top 9 THP markets to reach 19.6 per cent April YTD. “We have strong investment plans in H2 including additional launches and further market roll outs, supported by strong marketing activation initiatives,” Bat said. Furthermore, BAT reports continued volume share leadership in Modern Oral in Europe at 69.3 per cent with Velo remaining volume share leader in 15 Modern Oral markets in Europe, driven by continued innovation and strong activation.
Jack Bowles, Chief Executive, said: “We are proud that BAT's transformation continues at pace, with strong revenue and volume growth in all three New Categories driving share gains across our key markets. We are leveraging the strength and increasing scale of our three global drive brands, and are continuing to reduce New Category losses. Our New Category business is increasingly contributing to Group performance, and we are confident in delivering our GBP 5 billion New Category revenue and profitability targets by 2025.”