TOBACCO giant British American Tobacco has said it's on track to deliver its previously stated guidance for 2024 thanks to the continued strong performance of its new categories.

The company said its Vuse and Glo reduced-risk product categories had both maintained or expanded market share in key markets during the period.

Vuse, the world's number-one global vaping brand, maintained its share of global vaping markets at 41.1 per cent. The group said it expected Vuse's market share and profitability to expand in the second half of the financial year as it rolled out new products However, British American Tobacco warned that its financial performance would "be impacted by the continued growth of illicit single-use vapes."

At the group's Glo heated tobacco division, market share held up well during the period with an "encouraging early consumer response to our new innovations Glo Hyper Pro and improved consumables."

On the other side of the portfolio, combustibles, British American Tobacco reported a 30 basis point increase in market share in its key cigarette markets.

In the US, a key market for the tobacco giant, volumes across the industry fell nine per cent in the first half of 2024, and the group said it would be impacted by this as well as "continued investment in our commercial actions and related phasing of wholesaler inventory movements." These headwinds would "unwind" in the second half of the year, it added.

For 2024 as a whole, British American Tobacco said it expected global tobacco industry volume to fall three per cent. Against this backdrop the group has projected low-single-figure organic constant currency revenue growth for the year, weighted to the second half.

Shares closed down 0.53 per cent.

(c) 2024 City A.M., source Newspaper