BAT shares fall as group keeps annual profit guidance

BRITISH AMERICAN TOBACCO PLC shares fell 4% after the company maintained its annual profit forecast despite raising revenue targets for its vaping division. The tobacco giant expects full-year adjusted operating profit growth at the lower end of its 4-6% guidance range. Investors sold off the stock as the group failed to upgrade its overall outlook following a major regulatory shift in the United States.

### U.S. Regulatory Shift Boosts Vaping Outlook The United Kingdom-based company increased its revenue growth forecast for smoking alternatives to the mid-teens, up from previous low double-digit estimates. This revision follows an FDA decision to use enforcement discretion for unlicensed products that meet specific standards. BAT CEO Tadeu Marroco told analysts on a call that unlicensed vape sales in the U.S. are worth 7 billion pounds ($9.43 billion).