LONDON (Reuters) – British American Tobacco on Thursday forecast low-single digit organic revenue growth, adding it expected a slow recovery in the United States economy.
The maker of Dunhill and Lucky Strike cigarettes also reported a 5.2% rise in full-year profits, beating analyst expectations.
BAT’s core cigarette business is grappling with falling smoking rates in some countries, in particular the U.S. market, which accounts for a lot of its sales.
U.S. smokers are swapping to cheaper brands amid a tough economy or switching away altogether to alternatives such as vapes.
CEO Teadeu Marroco said its plans to revive performance in the United States were showing early signs of progress, and it was investing further.
“We expect these investments, together with the U.S. macro-economic pressures, will impact 2024,” he said.
Its adjusted diluted earnings per share stood at 3.86 pounds ($4.87), compared with a 3.76 pounds consensus from analysts polled by the company.
($1 = 0.7918 pounds)
(Reporting by Emma Rumney; editing by David Goodman and Jason Neely)
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