British American Tobacco says vaping sales are growing and remains confident in its future product p

British American Tobacco says returns on investment in new-category products are arriving two years ahead of schedule, with growing confidence in e-cigarette sales performance and oral products.

According to a recent report by industry media outlet Journalnow, British American Tobacco reiterated on Wednesday that it remains confident in its future portfolio of smoke-free nicotine and tobacco products, led by the U.S. vape brand Vuse.

In its FY2023 trading update, the tobacco company said it expects new-category products to reach “broadly breakeven” in 2023—two years earlier than originally projected.

British American Tobacco is increasingly confident in e-cigarettes, GLO heated tobacco, and oral products, and expects these categories to account for 50% of its revenue by 2035. Vuse products are currently available in 50 markets worldwide.

British American Tobacco also confirmed that it expects to deliver its projected 3% to 5% revenue growth guidance for FY2023. The company plans to release its FY2023 financial report in February 2024.

Tadeu Marroco, who was promoted to Director and Chief Executive Officer of British American Tobacco in May, said he was encouraged by the strong performance of Vuse and Velo, as well as the robust volume-driven revenue and profit growth they generated. At the same time, British American Tobacco continues to support the recovery of its traditional cigarette sales in the U.S.

He said: “We have made it clear that the recovery of combustibles in the U.S. will take time.” However, he expressed confidence in the actions to be taken, believing they will strengthen the company’s portfolio over the long term.

Marroco added that British American Tobacco has completed a “deep and comprehensive review” of its U.S. business.

He said: “Accordingly, we have started—and will continue—to invest in improving our portfolio management, strengthening our route to market, and further enhancing our broad, digitally enabled revenue growth management capabilities. We are confident this will deliver greater resilience across economic cycles.”