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LONDON (Reuters) – British American Tobacco (BATS.L), the world's second largest tobacco producer in terms of turnover, on Tuesday reduced its annual sales target for next-generation products, citing a sluggish market in Japan and a product recall in the United States. United.
FILE PHOTO: Cigarettes were seen during the manufacturing process at the British American Tobacco Cigarette Factory (BAT) in Bayreuth, southern Germany on April 30, 2014. REUTERS / Michaela Rehle / File Photo
The company said it expects the replacement products of cigarettes – tobacco heaters and electronic cigarettes – to reach 900 million pounds ($ 1.18 billion) this year, down from the previous year. Previous goal of a billion pounds.
This is due to a reduction in inventories in Japan, the most developed market for tobacco heaters, whose growth has eased, and the effect of the recall of its Vuse Vibe in the United States.
Lucky Strike and Dunhill cigarette manufacturers also said that exchange rate fluctuations would have a 7% negative impact on adjusted full-year earnings per share growth, assuming rates remain unchanged for the rest of the year. 39; year.
On a constant currency basis, the Company indicated that it planned to exceed its high single digit earnings per share growth target.
The company made these comments in a commercial update ahead of analyst meetings in the coming weeks.
Regarding cigarettes, BAT stated that it was gaining market share in a global market whose volume is expected to decrease by about 3.5% this year, as more people quit smoking. .
In the United States, the volume of the industry is expected to fall from 4 to 4.5% this year, with a slight improvement in the second half.
Report by Martinne Geller; Edited by Edmund Blair
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