âBenefiting from a continued strong performance in new categories, which now contributes significantly to the group’s revenue growth, we are making excellent progress towards our revenue target ($ 6.62 billion) by 2025 . “
Bowles said that “by taking advantage of our increased scale, new categories will contribute to earnings growth for the first time as their losses begin to decline, a key step on our path to profitability by 2025.”
Part of Bowles’ optimism comes from the fact that BAT added 3.6 million new consumers of non-combustible products through September 30, which is more than what it gained for all of 2020.
âIt is interesting to compare the profitability of cigarettes and new category products,â said David Sweanor, adjunct professor of law at the University of Ottawa and author of several studies on e-cigarettes and health.
âBAT has said for some time that this category is a year or two away from profitability, but the market keeps changing and profitability is eluding them. The losses are still very important.
Barclays analyst Jain Gaurav said on Tuesday that “with the loss of new categories and the trend towards profitability and (potential) share buybacks of ($ 1.32 billion in 2022), We believe BAT can achieve 8-9% EPS growth in FY 2022.