British American Tobacco said on Thursday that it was still working towards transferring its Russian business and that it was confident in delivering its financial targets irrespective of how long it takes to offload the unit.
The maker of Lucky Strike and Newport cigarettes, which stuck to its 2022 revenue and earnings forecast, said annual global tobacco industry volume is seen down about 3% due to the uncertainty over the Ukraine-Russia conflict.
BAT, which makes Pall Mall and Rothman's cigarettes, controls just under 25% of the Russian tobacco market.
The tobacco giant said the war in Europe was increasing global uncertainty and disruption, making inflationary pressures on supply chains worse and hitting consumption, while increasing costs.
Its distributor, SNS Group of Companies, said in March the two firms were in advanced talks over the transfer of the business after Moscow suggested that it could nationalise assets of foreign firms that left the country.
BAT in early March had cut its 2022 forecast due to the planned exit.