5
A woman poses with a cigarette in front of BAT (British American Tobacco) logo in this illustration taken July 26, 2022. REUTERS
LONDON, Sept 29 (Reuters) – British American Tobacco expects revenue growth from smoking alternatives like vapes and nicotine pouches in the mid-teens in percentage terms each year until 2030, it said on Tuesday.
Keep up with the latest medical breakthroughs and healthcare trends with the award-winning Reuters Health Rounds newsletter. Sign up here.
- The world’s second-largest tobacco maker by market value will host an investor day later on Tuesday, where it will outline its strategy for growth until the end of the decade
- It had already forecast mid-teens revenue growth from smoking alternatives for 2026 and now expects this to continue in the years ahead
- It also expects the “contribution margin” of these products — a measure of how profitable they are — to reach at least 30% by 2030, against 13.3% in June 2026.
- BAT, which makes cigarette brands like Dunhill and Lucky Strike, has been trying to grow revenues from other nicotine products amid long-term declines in smoking in some key markets
- Its rising ambitions reflect fast-growth in its nicotine pouch label Velo, after years of difficulties with its vape and heated tobacco brands
- The company also said it remains on track to deliver at the lower end of its guidance for revenue growth of between 3% and 5% and growth of 4% to 6% in adjusted profit from operations in its 2026 financial year
Reporting by Emma Rumney; Editing by Jan Harvey
