British-American tobacco has boosted its momentum of commercial growth after reporting new users on its products.
The FTSE 100 company on Tuesday said demand for “non-combustible” products, such as its vapse Vuse device, continues to grow, with new 1.4m new customers added by the end of June.
Tobacco companies are pushing for market share on so-called “modern products” as public health services have lowered smoking prices around the world.
BAT now has about 15m buyers of items such as breathing apparatus, hot cigarettes and nicotine oral bags. This compares with the 638bn cigarettes the company sold last year to smokers about 140m.
“Consumer registration history” prompted BAT to raise the annual display by more than 5%. Previous recommendations were 3% to 5%.
Shared earnings are based on the previous notion of “mid-single digit” growth as the company grows its investment in technology, a group that hopes to make a profit by 2025.
Jack Bowles, head of BAT, said 2021 would be a very important year for the business, which has a variety of brands including Lucky Strike and Dunhill cigarettes.
The tobacco industry has been under pressure, possibly because of concerns over certain regulations. Some countries, however, have limited anti-smoking laws, including Pakistan, Bangladesh and Vietnam, which BAT on Tuesday designated as areas of significant growth.
The share price of BAT, which fell by about 10% last year, rose 2% on Tuesday morning.
Alicia Forry, a researcher at Investec, said Vuse’s BAT is “approaching global leadership” with a growing, market share of more than 31% in the world’s five largest markets.
Billions billionaire Kenneth Dart has been silent in recent months Third largest shareholder in BAT, Generating an average cost of about $ 4.5bn.