Pre-close statement sends British American shares up in smoke

The price of shares in FTSE 100 tobacco giant British American Tobacco (LON:BATS) has fallen by 5.51% to 2,932.50p (as of 13:30 BST) as the company reported that it expected global industry volumes to sink by 3.5% this year. The company said its full-year volumes in North America would be down by between 4% and 5% this year, but new product categories were beginning to gain a foothold.

Chief executive Jack Bowles commented: “We are creating a stronger, simpler business and driving a step change in New Categories, built on the foundation of a strong combustible business. With our focus on building global brands, we intend to consolidate our New Category portfolio into fewer brands. Our Strategic Brands continue to take share, while new product launches and a sharpened focus on priority markets and products are expected to drive stronger New Category growth in the second half. We are on track for a good performance in 2019 with revenue and adjusted operating profit growth in line with our guidance and delivery of high single figure FY adjusted diluted EPS growth at constant rates of exchange“.