Posted By Global Banking and Finance Review
Posted on December 11, 2024
(Reuters) -British American Tobacco on Wednesday forecast stronger revenue growth in its new category, which includes vapes and oral nicotine products, and combustibles in the second half of the year, driven by increased investments in the United States.
The maker of Lucky Strike and Dunhill cigarettes said it remains on track to meet its 2024 outlook of low-single-digit organic revenue and adjusted profit growth.
"In the United States, I am encouraged that our investment approach, taken over the last 18 months to strengthen our business, is working despite a challenging macro-economic backdrop," CEO Tadeu Marroco said in a statement.
BAT, along with Philip Morris and Japan Tobacco, is set to pay C$32.5 billion ($22.94 billion) to settle a long-running tobacco lawsuit in Canada, as part of a proposed plan by a court-appointed mediator, Philip Morris said in October.
The British firm said on Tuesday it expects clearer details on the financial impact of the settlement when it releases its 2025 forecast in February.
($1 = 1.4169 Canadian dollars)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Sherry Jacob-Phillips)