British American Tobacco Cuts 2019 New Category Revenue Guidance

By Anthony O. Goriainoff

British American Tobacco PLC (BATS.LN) on Wednesday cut its guidance for new category products, blaming the recent slowdown in the U.S. vapor market.

The company--which houses a number of electronic and vape products as well as traditional cigarettes--said it now expects new category revenue on a constant currency basis to grow at the lower end of the 30% to 50% range for the year. This compares with guidance given in August for growth to be in the middle of the range.

The company, which houses Kent, Dunhill and Lucky Strike brands, added that adjusted operating profit--which strips out exceptional and other one-off items--is expected to grow at the upper half of its 5% to 7% long-term guidance range.

Despite the fall in the U.S. vapor market, BAT said it still expects to report strong constant currency revenue growth for the region in line with the 3% to 5% guidance range, supported by good pricing and reduced discounting.

President Trump said in September that the U.S. plans to pull most vaping products from the market, citing growing concerns about health hazards and rising use by teenagers. BAT has previously said it doesn't sell flavors that mimic children's food or appeal to youth.

Write to Anthony O. Goriainoff at [e-mail]

(END) Dow Jones Newswires

November 27, 2019 03:15 ET (08:15 GMT)

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