By Matteo Castia
--British American Tobacco expects 2021 revenue to rise more than previously thought
--The company targets revenue of GBP5 billion at its new-category division by 2025
--The global travel retail business is unlikely to recover until 2022
British American Tobacco PLC on Tuesday raised its full-year revenue guidance but said it doesn't expect its travel retail business to recover from the coronavirus pandemic before next year.
The FTSE 100 company said it expects revenue growth for 2021 to be above 5% at constant currency, building on strong pricing and volumes for combustible tobacco. This compares with previous views of 3%-5% revenue growth for the year.
Adjusted diluted earnings per share for the year are anticipated to increase at constant currency by mid-single digit, the company said.
"We continue to expect 2021 to be a pivotal year for the business, with accelerating New Category revenue growth [and] a clear pathway to New Category profitability by 2025," the owner of Camel and Lucky Strike cigarettes said. It said it aims to reach revenue of 5 billion pounds ($7.09 billion) for that division by 2025.
So far in 2021, new-category revenue and volumes have accelerated and the division has gained further market share, the company said.
However, British American Tobacco said no recovery is expected until 2022 for its global travel-retail unit.
The company also said it expects a 2% negative impact on first-half and full-year adjusted profit due to transactional headwinds.
Write to Matteo Castia at email@example.com
(END) Dow Jones Newswires
June 08, 2021 03:05 ET (07:05 GMT)Copyright (c) 2021 Dow Jones & Company, Inc.