British American Tobacco (BAT) and its peers breathed a sigh of relief when Rishi Sunak decided to call an early general election just over a week ago.
This is because the Government’s proposed law to clamp down on smoking by banning those born after 2009 from purchasing cigarettes did not reach the statutes in time.
Investors in the tobacco giant will have to wait to see if BAT sheds any light on this in its update on Tuesday.
Cigarette maker Pall Mall is focusing on new smoking alternatives, such as vaporizers.
But the task is far from simple, given that in February it revealed it had fallen to an annual loss after taking a hit to its US business.
BAT’s U.S. brands have suffered from falling smoking rates, lower sales amid a broader decline in the cost of living and uncertainty surrounding a possible ban on menthol cigarettes in the United States. The company also expects its group revenue to rise slightly this year.
BAT, valued at £53bn, wants to make half its revenue from non-traditional cigarettes by 2035.
Derren Nathan, head of equity research at brokerage Hargreaves Lansdown, said: “Progress on net debt repayment will also be the focus.”