British American Tobacco (BAT) reported annual profit of $15.36 billion on Thursday, up 2.3 per cent year-on-year, powered by growing sales of its Velo nicotine pouch and heated tobacco products.
The Velo pouch gained market share in the US partly due to its higher nicotine strengths and introductory offers, helping BAT expand its market position.
The portfolio of newer products, including vapour and heated tobacco, saw double-digit growth, contributing to 7 per cent overall growth.
BAT CEO Tadeu Marroco stated that Velo now holds the second-highest market share in the US, trailing only Zyn, and that Vuse vape uptake was improving despite pressure from unregulated products available in the market.
The company’s total revenue rose 2.1 per cent to £25.61 billion, with smoking alternatives now representing more than 18 per cent of its total sales.
BAT reiterated its medium-term target, aiming for 3 to 5 per cent revenue growth and 4 to 6 per cent operating profit growth by 2026.
