British American Tobacco (BAT) said Tuesday it remains on track to meet its full-year 2025 targets as growth in its newer nicotine products strengthens.
The London-based maker of Vuse e-cigarettes and Velo oral nicotine pouches said it expects about 2% growth in both revenue and adjusted profit from operations for fiscal 2025.
The company said it is encouraged by its momentum in the United States. The company added that Velo Plus continues to post strong results.
“Velo continues to grow strongly in all three regions, in the fastest growing new category with the lowest risk profile, relative to cigarettes,” BAT CEO Tadeu Marroco said.
Reynolds American Inc., a subsidiary of BAT, in March announced it is expanding production at its operations center in Tobaccoville, North Carolina, to accommodate the company’s brand of smokeless nicotine pouches, Velo Plus.
BAT also reported strong momentum in other new categories, including vapor product Vuse, from BAT’s subsidiary R.J. Reynolds Vapor Co., Winston-Salem, North Carolina.
“Recent Vuse volume and revenue improvement in the U.S. is encouraging, although the vapor category continues to be impacted by illicit proliferation,” Marroco said. “Over time, we believe Vuse is well positioned to benefit from stronger federal and state level enforcement.”
In February, BAT warned that without stronger enforcement, illicit vapors products will continue to impact the legal market.
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