BAT Predicts a 2-4% Sales Growth on E-Cigarettes and Nicotine Pouches

As more people are switching from cigarettes to safer nicotine alternatives, British American Tobacco (BATS.L) has just announced it expects a revenue growth of between 2% to 4% at constant currency rates for 2022.

BAT has recently estimated that approximately 3.2 million new consumers have started using its non-combustible nicotine products in the first nine months of the year. This brings the total number of users to about 21.5 million people.

To this effect, the tobacco giant is forecasting single digit adjusted diluted earnings per share growth on a constant currency basis for the year ending Decemeber 31st, reported Reuters. The manufacturer is also expecting “strong adjusted operating margin improvement despite increasing inflation in our supply chain.” BAT also said that sales of its combustible cigarette brands were flat in the third quarter.

BAT’s efforts to reduce carbon emissions
Meanwhile, as part of its efforts to become a more sustainable business, BAT has also recently announced the plans and actions it aims to take in order to reach its climate targets. Part of the plan includes reducing emissions across its value chain by half until 2030, from a 2020 baseline, with the aim of reaching net zero by 2050. The publication of the plan follows receiving approval of its 1.5ºC-aligned trajectory last July, from the Science Based Targets initiative (SBTi).

BAT’s Chief Growth Officer, Kingsley Wheaton, said that this latest plan is part of the tobacco company’s commitment to demonstrate that it wants to contribute to a sustainable future. “We’re proud to take this latest step in our sustainability journey. By outlining the measures we will take to live up to our Net Zero targets through our Low-Carbon Transition Plan, we’re demonstrating our continuing commitment to building A Better Tomorrow. As a global company, we know minimising impacts across our value chain is the right thing to do, as well as making sound business sense. That is why we have set stretching science-based climate-related targets and continue to embed sustainability across our business.”