British American Tobacco (BAT) has raised its full-year revenue guidance after the cigarette maker’s focus on new products such as e-cigarettes paid off.
The world’s second-biggest cigarette maker, which owns brands such as Dunhill and Lucky Strike, said its revenue will grow by more than five per cent, exceeding its original three to five per cent guidance.
BAT said its “new category” products, including tobacco-heating devices, had gained shares in all key markets.
This included the US where menthol cigarettes and flavoured cigars are facing a possible ban.
Following the trading update, shares in BAT surged 1.6 per cent as markets opened.
Jack Bowles, chief executive of British American Tobacco, said that he expects 2021 to be a “pivotal year for the business.
“We are investing and building strong, fast growing international brands in each segment, rapidly accelerating our reach and consumer acquisition.
“This, together with our strong business performance, is reflected in our upgraded group revenue growth guidance of above five per cent for 2021.”