Overseas new tobacco information: British American Tobacco updates its new tobacco sales in 2022

Overseas new tobacco information: British American Tobacco updates its new tobacco sales in 2022

Recently, British American Tobacco (BAT) updated its new tobacco sales in the second half of 2022, and the number of new tobacco consumers of the company increased by 3.2 million in the first three quarters of 2022.

Benefiting from the growth in the number of new tobacco consumers, BAT expects the revenue growth rate to be 2% to 4% in 2022

The number of new tobacco consumers of the Company will increase by 3.2 million in the first three quarters of 2022, and the number of new tobacco consumers will reach 21.5 million by the end of September, mainly thanks to product innovation and promotion and market expansion. The Company expects that the annual revenue based on constant exchange rate will increase by 2% to 4% year on year in 2022; The new tobacco business is continuing to drive the growth of the company's sales, revenue and market share, and has become an important source of BAT's performance.

In addition, the Company expects that the adjusted operating profit margin will be significantly improved in 2022, mainly based on strong pricing, brand size and marketing investment; The three-year "quantum plan" is expected to achieve annual cost savings of £ 1.5 billion for the company by the end of 2022. In the pre disclosure, the company said that it is continuing to invest in new tobacco business to promote sustainable growth. It is expected that the new tobacco business will grow in all regional markets in 2022, with the goal of achieving a new tobacco business revenue of 5 billion pounds by 2025, and accelerating business transformation.

All new types of tobacco keep ahead in the segment market and develop modern oral tobacco business in emerging markets

Specific to each new tobacco category:

Atomized electronic cigarette: Vuse strengthened its global leading position, with a market share of 35.7% in key markets

As of September 2022, the market share of Vuse products in the top five atomized electronic cigarette markets (the United States, Canada, Britain, France and Germany) has reached 35.7%, an increase of 2.2 pct over the same period in fiscal year 2021. Driven by disposable smoke cartridge products, the company's atomized electronic smoke continues to grow in the international market; Vuse has achieved a leading position in 35 states of the United States. The volume of atomized electronic cigarettes in the United States reached 39.3%, with a year-on-year growth of 6.8 pct, ranking first in the United States. In addition, Vuse Go recently launched by the company has been sold in 12 regional markets around the world, and its value share in Britain and France has jumped to the second place.

Heating does not burn: GLO's market share continues to grow, reaching 19.5% in key markets

By September 2022, the sales share of the company's glo brand in Japan, South Korea, Italy, Hungary, Greece, Ukraine, Poland and other top nine heating non combustion markets had reached 19.5%, an increase of 1.6 pct compared with the same period in fiscal year 2021. In the European market, the sales share of glo reached 20.4%; In the Japanese market, the sales volume of Hyper driven glo in the  consumer market increased by 0.5 pct to 7.3% year on year, and the sales volume of all heating and non burning products in Japan accounted for 20.2%. In addition, Hyper X2 was launched in the national market of Japan in October this year, and recently in 19 key markets around the world. The company plans to further promote it at the end of the year.

Modern cigarettes in mouth: Velo continues to lead the European market and further explore emerging markets

As of September 2022, the company's market share of modern oral cigarettes in Europe is 69.1%, and Velo brands including Velo Mini and Velo Max maintain a leading position in 15 European oral cigarette markets. Globally, the company's sales share in the five major cigarette markets of the United States, Sweden, Denmark, Norway and Switzerland was 30.6%, down 4.1 pct compared with the same period in the 2021 fiscal year, mainly because the company gave priority to investing in the development of atomized electronic cigarette products in the United States market. In addition, Pakistan has become the company's third largest market for modern oral cigarettes. Velo's monthly sales in Pakistan exceeded 40 million, reflecting the development of exported cigarette products in emerging markets.