(Reuters) - British American Tobacco (LON:BATS), the world's No. 2 tobacco company, on Wednesday forecast sales of vaping and e-cigarette products to accelerate in the second half of the year and announced plans to consolidate the business into fewer brands.
The maker of Lucky Strike and Dunhill cigarettes flagged slowing global industry volumes, but forecast improved margins and further investments in its "New Category" portfolio, which includes vaping and e-cigarette brands.
The business makes tobacco heating product glo and Vype e-cigarettes as well as snuff and nicotine pouches.
Tobacco firms around the world have been investing heavily in e-cigarettes and vaping products as demand for traditional cigarettes wanes.
BAT, which also reaffirmed its full-year targets, said first-half revenue growth for the "New Category" business was approaching its annual target range.
The company said it expects revenue growth for the year at the business to be around the middle of the 30% to 50% range on a constant currency basis.