StockMarketWire.com - British American Tobacco said Wednesday it was on track to meet full-year performance expectations driven by its combustibles and vaping businesses, though a stronger pound was expected to stifle gains.

Full year adjusted earnings per share growth was expected to be impacted by a currency translation headwind, around 6% for full-year 2018, at current exchange rates, the company said.

The company said it expected full-year industry volume to decline around 3.5%.

Market share grew 40 basis points year-to-date from a year earlier driven by the strategic brands growth of 180 basis points year-to-date, the company said.

The company delivered 'good' adjusted revenue and adjusted operating profit growth, on a constant currency representative basis, but said performance would be second-half weighted.

THP and Vapour remained on track to reach £900m of full year reported revenue, while oral tobacco was expected to deliver 'strong constant currency revenue growth on a representative basis,' the company said.

In the US, British American tobacco had market share growth 20 basis points year-to-date with NAS, Camel and Newport all growing share, while Vuse volume was up over 30% year-to-date despite the Vuse Vibe recall.

US industry volume decline remained in line with historic ranges down 4.4% year-to-date and 'we continue to expect an industry decline of around 4.0-4.5% for the full year 2018,' it added.

'We remain on track for a strong performance in 2018 - driven by both our combustible and PRRP businesses.'

'In the US, we are performing well, with positive pricing and continued value share growth.'

'Our de-leveraging remains on track and we remain committed to a dividend pay-out ratio of at least 65%.'

'We expect to exceed our high single figure adjusted diluted EPS growth at constant rates of exchange,' said Nicandro Durante, CEO.

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