British American Tobacco expects to return to profit growth in the US for the first time in three years by mid-2025, saying demand for nicotine pouches had boosted sales.
The maker of Lucky Strike and Dunhill cigarettes increased its annual revenue growth target to between 1 and 2 per cent, from a previous 1 per cent target, forecasting strong sales in its “modern oral” category, which includes the pouches.
Chief executive Tadeu Marroco said that the company had had “a very good response” to the pouches, flavoured bags of nicotine that are held behind the lip. “We are seeing it in different geographies in the US and we are seeing different types of consumers getting into it.”
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