(Adds detail, analyst, updates shares)
LONDON, Feb 11 (Reuters) - British American Tobacco
on Friday reported a 7% rise in full-year adjusted revenue to
25.7 billion pounds ($34.8 billion), helped by sales of
e-cigarettes and oral nicotine.
The world’s second-largest tobacco company also announced a
dividend increase of 1.0% to 217.8 pence and a 2 billion pound
share repurchase programme for 2022.
It posted a 51% rise to 2.05 billion pounds 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, BAT said it was on track to
report revenue of 5 billion pounds and profitability by 2025.
"Continued growth in new categories is a cornerstone of
BAT's long-term plans for success," Third Bridge analyst Ross
Hindle said. "With over 1.1 billion smokers still using
combustibles, the opportunity to convert consumers towards New
Categories is highly attractive."
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% this year. For 2021, the company had
estimated those volumes to remain flat.
Before adjusting items and including the dilutive effect of
employee share schemes, adjusted diluted earnings per share
(EPS) fell 0.8% to 329.0 pence from 331.7 pence.
The maker of Lucky Strike and Camel cigarettes said it
expects constant currency revenue growth of 3%-5% this year, and
high-single figure constant currency adjusted EPS growth,
weighted towards the second half of the year.
BAT shares, which have risen more than 20% in the past year,
were flat in morning trade.
($1 = 0.7388 pounds)
(Reporting by Richa Naidu in London and Siddharth Cavale in
Bengaluru; editing by Philippa Fletcher and Jason Neely)