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Tuesday 08 June 2021 7:32 am  |  Updated:  Tuesday 08 June 2021 9:26 am

British American Tobacco lifts guidance as smokers switch to less harmful products

By: Damian Shepherd

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British American Tobacco (BAT) is reportedly set to begin a begin a partial sale of its stake in Indian partner ITC as early as this week.
Under the buyback plan, BAT plans to repurchase £1.6bn worth of its ordinary shares, with £700m slated for 2024 and £900m to follow in 2025. (Credit: Getty)

British American Tobacco (BAT) has raised its full-year revenue guidance after the cigarette maker’s focus on new products such as e-cigarettes paid off.

The world’s second-biggest cigarette maker, which owns brands such as Dunhill and Lucky Strike, said its revenue will grow by more than five per cent, exceeding its original three to five per cent guidance.

BAT said its “new category” products, including tobacco-heating devices, had gained shares in all key markets.

This included the US where menthol cigarettes and flavoured cigars are facing a possible ban.

Following the trading update, shares in BAT surged 1.6 per cent as markets opened.

‘Pivotal year’

Jack Bowles, chief executive of British American Tobacco, said that he expects 2021 to be a “pivotal year for the business.

“We are investing and building strong, fast growing international brands in each segment, rapidly accelerating our reach and consumer acquisition.

“This, together with our strong business performance, is reflected in our upgraded group revenue growth guidance of above five per cent for 2021.”

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Banning vape shops won’t fix scuzzy high streets

High street vape shop Ecigwizard next to Costa Coffee and Subway, with people walking and sitting outside.

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