British American Tobacco said on Thursday it expects full-year revenue growth of between 2% and 4% at constant currency rates, as more people are using its e-cigarettes and oral nicotine products.
BAT forecast mid-single digit adjusted diluted earnings per share growth on a constant currency basis for the year ending 31 December.
The Lucky Strike cigarette maker also expects 'strong adjusted operating margin improvement despite increasing inflation in our supply chain.'
BAT estimated that 3.2 million more consumers began using its non-combustible products in the first nine months of the year, bringing the total number of users to about 21.5 million people.
The company added that sales of its combustible cigarette brands were flat in the third quarter but did not provide a full-year sales forecast for that business.
British American Tobacco said on 6 October that a year-long study evaluating the potential harm reduction of using heated tobacco products compared to cigarettes will help expand the category of alternative 'smoke-free' products.
Tobacco companies are trying to attract new customers with alternative tobacco products as governments and public health campaigners make a concerted push towards a tobacco-free world.
But scientists remain sceptical about the long-term health benefits.
Heated tobacco products (HTPs) - such as BAT's glo and key rival Philip Morris International's – are envisioned to reduce the likelihood of developing diseases like lung cancer and cardiovascular conditions in smokers of traditional cigarettes who would not otherwise quit.
BAT's HTP study included more than 300 healthy adults who were divided into groups, including those who either continued smoking cigarettes or switched to using only glo, as well as never-smokers.
The study, published in a medical journal, tracked biological indicators called biomarkers of the impact of certain cigarette smoke chemicals, via samples of blood, urine and other measurements taken every month.
Researchers found 'significant' reductions in biomarkers of select toxins in glo users, compared to those on conventional cigarettes.