A seven percent rise in full-year adjusted revenue to 25.7 billion pounds ($34.8 billion) was reported by BAT Friday, helped by sales of e-cigarettes and oral nicotine.
The world’s second-largest tobacco company also announced a dividend increase of 1.0 percent to 217.8 pence and a 2 billion pound share repurchase program for 2022, according to Reuters.
It posted a 51 percent rise to 2.05 billion pounds in adjusted sales of its “new categories” product line which includes e-cigarettes, heated tobacco and oral nicotine. Though the division has yet to turn a profit, BAT said it was on track to report revenue of 5 billion pounds and profitability by 2025.
“Continued growth in new categories is a cornerstone of BAT’s long-term plans for success,” Third Bridge analyst Ross Hindle said. “With over 1.1 billion smokers still using combustibles, the opportunity to convert consumers towards New Categories is highly attractive.”
The company said 4.8 million more consumers than last year used non-combustible products such as Vuse e-cigarettes, glo heated tobacco and Velo oral nicotine.