British American Tobacco's Revenue Growth Forecast

(Reuters) – British American Tobacco (BAT) on Wednesday forecast stronger revenue growth in its new category, which includes vapes and oral nicotine products, as well as combustibles in the second half of the year. This growth is driven by increased investments in the United States.

The maker of Lucky Strike and Dunhill cigarettes stated that it remains on track to meet its 2024 outlook of low-single-digit organic revenue and adjusted profit growth.

CEO Tadeu Marroco expressed optimism, saying, "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."

BAT (LON:BATS), along with Philip Morris (NYSE:PM) and Japan Tobacco (OTC:JAPAF), is set to pay C$32.5 billion ($22.94 billion) to settle a long-running tobacco lawsuit in Canada. This settlement is part of a proposed plan by a court-appointed mediator, as mentioned by Philip Morris in October.

The British firm indicated on Tuesday that it expects clearer details on the financial impact of the settlement when it releases its 2025 forecast in February.

($1 = 1.4169 Canadian dollars)