🔍 British American Tobacco's current outlook: steady growth despite challenges! 📈

British American Tobacco $BTI today released its first half results, which met expectations. 🔍 The maker of iconic brands such as Kent, Dunhill and Lucky Strike maintains its outlook for2024, with low single-digit revenue and adjusted operating profit growth forecast, despite 2% negative impact of currency transactions.

The company's shares respond by rising more than 4,5 %.

📊 Key numbers:

Revenue expectations for 2024: £26.25 billion

Expected adjusted operating profit: £12 billion

First half results: Adjusted operating profit £5.56 billion, revenue £12.34 billion

CEO Tadeu Marroco believes new product launches and investment in cigarettes in the US market will deliver growth in the second half of the year. 🌱 "We are targeting 3-5% revenue growth and mid-single digit growth in adjusted operating profit by 2026," He said.

🚬 Challenges and opportunities:
The company is facing a decline in e-cigarette market share due to illegal disposable vaporizers. Yet BAT is recovering its share of the U.S. market, although the economic situation remains difficult. The ambition is to achieve by 2025 of revenues of £5 billion from alternative smoking is now unlikely.

🌿 Competition and regulation:
Competitor Philip Morris International is more advanced in the transition to alternative products. Strict regulation and declining smoking rates are pushing companies to innovate. Investors appreciate the recovering share of BAT in the cigarette market and the strong performance of nicotine sachets in the US.

What's your view of the cigarette industry, and who do you see as the favourite in the transition to e-cigarettes?