- Tobacco giant British American Tobacco upgraded its outlook on revenue on accelerating growth in non-combustible products including vaping and stronger cigarette volume.

The company upgraded its outlook on revenue for 2021, to above above 5% at constant currency, ahead of its previous 3-to-5% guidance.

The company reported a continued acceleration of new category volume and revenue growth in the first half of its fiscal year, with market share gains across all three New Categories in all key markets.

Acquisition of non-combustible product consumers was up 1.4 million to 14.9m in the first quarter, driven by vape brand Vuse.

Vuse was approaching global leadership in vapour, reaching 31.4% category value share in top 5 vapour markets April year to date, up 5.9% versus FY 2020, the company said.

In combustibles, the company reported value and volume share gains, with strong pricing partially offset by geographic mix amid an recovery in emerging markets including Bangladesh, Pakistan and Vietnam.

'We continue to expect 2021 to be a pivotal year for the business, with accelerating new category revenue growth, a clear pathway to new category profitability by 2025, and leverage reducing to c.3x by year end,' the company said.

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