British American Tobacco (BAT) has said that it has revised its expectation on its smoking alternative products which it now expects to make £100 million short of expectations.
The London-based tobacco company, which previously announced a revenue target of £1 billion, said that its THP and vapour revenue is showing strong growth and is expected to reach £900m of reported revenue in 2018, driven mainly by THP sales.
BAT said that its revision is largely driven by a reduction in planned year-end stocks in Japan as the THP category remains flat, and the effect of the Vuse Vibe recall in the US.
However, BAT’s global vapour business, it said, is expected to deliver double-digit volume and constant currency revenue growth for the year.
The business continues to perform well and BAT remains confident of delivering good adjusted revenue growth on a constant currency representative basis, driven by the Strategic Brand Portfolio (which includes its Strategic Combustible and Potentially Reduced Risk Products (PRRP) brands)
“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,” Nicandro Durante, CEO, said.
“At the same time, our combustible tobacco business continues to perform well. We remain on track for a strong performance in 2018.”
© 2018 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click subscribe to sign up for the Checkout print edition.