- British American Tobacco said trading was in line with expectations but warned it expected earnings growth would come under pressure amid a stronger pound, while lower US industry volumes would weigh on revenues.

The group's strategic brand portfolio was expected to produce strong adjusted revenue growth, while its global drive brands were expected to support market share growth.

Adjusted revenue and adjusted profit growth would be weighted to the second half of the year amid the impact of a number of significant events, the company said.

First half earnings per share were expected to be impacted from a significant currency translation headwind of 9%.

Revenue in the first half would likely be impacted by lower US industry volume, mainly seen in the first quarter of the year, the company warned.

The benefit of the US tax reform, meanwhile, would help to fund significantly increased investment in next generation products, the company said.

While the strong volume growth in Pakistan is expected to drive greater first half geographic mix dilution but this momentum would likely unwind in the second half.

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