By Michael Susin

 

British American Tobacco PLC said Wednesday that first-half pretax profit fell on higher expenses, despite a robust increase of new categories revenue.

The tobacco company posted a pretax profit of 3.06 billion pounds ($3.68 billion) in the first half of 2022 compared with GBP4.38 billion in the prior-year period and falling short of an expectation of GBP5.15 billion from one analyst's forecast taken from FactSet.

Revenue rose to GBP12.87 billion from GBP12.18 billion, in line with market expectations. Revenue from the company's new categories segment--which includes vaping products and oral tobacco--rose 45% to GBP1.28 billion.

BAT said it is on track to meet 2022 guidance of revenue growth in the range of 2% to 4% at constant currency, and mid-single-digit growth in adjusted diluted earnings per share--which strips out exceptional and other one-off items .

The company said it expects to deliver GBP5 billion new categories revenue by 2025.

"We continued to invest in our transformation, with over GBP1 billion invested in new categories in the first half. In addition, we improved the contribution from new categories, with losses down for the second consecutive period, reducing by a further GBP281 million, at constant rates. Our new category business is already delivering a positive financial contribution in nine markets," BAT said.

 

Write to Michael Susin at michael.susin@wsj.com

 

(END) Dow Jones Newswires

July 27, 2022 02:48 ET (06:48 GMT)

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