BAT posts strong revenue as vape sales soar

British American Tobacco on Friday reported a 6.9 per cent rise in full-year adjusted revenue to £25.68 billion, helped by sales of e-cigarettes and oral nicotine.

The tobacco giant also announced a dividend increase of 1.0% to 217.8 pence and a £2bn share repurchase programme for 2022.

It posted a 50.9 per cent rise to £2.05bn in adjusted sales of its “new categories” product line which includes e-cigarettes, heated tobacco and oral nicotine. Though the division has yet to turn a profit, losses reduced for the first time and BAT said it was on track to report revenue of £5bn and profitability by 2025.

The company said 4.8 million more consumers than last year used non-combustible products such as Vuse e-cigarettes, glo heated tobacco and Velo oral nicotine.

BAT said it expects global tobacco industry volumes to decline by around 2.5 per cent this year. For 2021, the company had estimated those volumes to remain flat.

The company said it expects constant currency revenue growth of 3-5 per cent this year, and high-single figure constant currency adjusted EPS growth, weighted towards the second half of the year.

“It has been a pivotal year: we accelerated new category revenue, with growth of over 50 per cent and reached a total of 18.3m consumers (up 4.8m) of our non-combustible products,” Jack Bowles, chief executive, said.

“Putting ESG at the heart of our strategy and corporate purpose is delivering sustainable growth, encouraging more consumers to transition to reduced risk products and reducing the health impact of our business,” he added.