BAT sees profit, revenue growth in upper half of forecast ranges

The company on Wednesday added that full year constant currency revenue growth for its vaping products would be at the lower end of its 30% - 50% range, reflecting the recent slowdown in the US market.

US health officials have reported 47 deaths and more than 2,000 cases of vaping-related lung illness.

BAT, which makes Lucky Strike and Dunhill cigarettes said it now expected currency adjusted revenue growth in the upper half of its 3% - 5% long term target range, while adjusted operating profit earnings per share growth would be at the top end of a 5% - 7% range.

The growth would be driven by higher prices prices and gains in market share in the traditional combustible cigarette market, BAT said.

Chief executive Jack Bowles said BAT believed the US vaping issues “should lead to a better and stronger regulatory environment in which we are well placed to succeed”.

Rival tobacco company Imperial warned on profits in September in part due to pressures in the US where there are moves to to potentially raising the legal age for vaping to 21.

In September, BAT said it planned to axe 2,300 jobs, including a 20% of senior posts, to focus on new product categories as cigarette sales fall.