British American Tobacco (BATS) increased its 2026 revenue growth forecast for its 'New Categories' division. This division features Vuse vapes and Velo nicotine pouches.
BATS now anticipates mid-teens percentage growth for the full year. This upgrades its previous low double-digit projection. The company cites accelerating demand and strong U.S. market performance.
BATS maintained its overall group guidance for the year. It expects results at the lower end of its 3-5% revenue growth forecast.
The company noted a steeper than anticipated decline in global cigarette industry volumes. It now projects a 2.5% drop for 2026. This reflects an ongoing shift from traditional combustibles to next-generation products.