British American Tobacco said it sees 2021 as a "pivotal year" as it backed its full-year profit and sales forecasts on Tuesday buoyed by strong demand for its "new categories" products as reported in Reuters. The company said an additional 3.6 million customers used its "new categories" products - e-cigarette, tobacco heating and oral nicotine - in the year to end-September, bringing its total non-combustible user base to 17.1 million.
"2021 is the pivotal year in our transformation journey," c.e.o. Jack Bowles said in a statement, highlighting that after years of losses, products from its new categories business would contribute to overall profits for the first time this year.
Philip Morris will reach its target of 50% sales from smoke-free products by 2025 through organic revenue growth rather than mergers and acquisitions, its c.e.o. Jake Olczak told Reuters. About 30% of revenue at Philip Morris now comes from "smoke-free" products such as iQOS tobacco heating devices.
"The way we look at these targets, we achieved the current 30% organically and I believe we can get to 50% by continuing this organic growth," Olczak said, adding: "Our $1 billion target of achieving sales from non-nicotine products we can also to a very large extent achieve organically."
Olczak's comments come nearly two months after Philip Morris bought British inhaler-maker Vectura, a deal which faced opposition from public health experts who questioned whether a tobacco group should own a company that cures the respiratory illnesses.