British American Tobacco plans to increase investment in next-generation products such as e-cigarettes and devices that heat tobacco without burning it, this year, with a large number of launches planned for the end of third quarter.
The world's second-biggest international tobacco company by revenue has thrown itself into the fiercely competitive battleground of alternatives, but it trails Philip Morris International in tobacco-heating devices that some see as more appealing to smokers.
'Dynamic Period Of Change'
“Today we are entering a dynamic period of change to our industry,” Richard Burrows, BAT chairman, told shareholders.
“An unprecedented confluence of technology, consumer demand, societal change and public health awareness has created a unique opportunity; the opportunity to make a substantial leap forward in our long-held ambition to provide consumers with less risky tobacco and nicotine choices.”
Burrows added that the company’s range of next generation products makes it “ideally positioned to further shape the future of the business during a period of profound change which can deliver benefits for: consumers, who will have a range of potentially safer choices; society, which could benefit from real progress in tobacco harm reduction; and shareholders, who will own a sustainable and profitable business.”
BAT said foreign currency exchange rates would be a headwind for the business in 2018, but said it was on track for "another good year" of earnings growth, excluding the impact of currency translation.
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