British American Tobacco (BAT) has raised its revenue forecast for its 'New Categories' segment, which includes vapes and nicotine pouches, expecting growth in the mid-teens percentage range. This adjustment reflects the company's ongoing transition from traditional tobacco products as it aims to become predominantly smokeless by 2035. Currently, smokeless products account for approximately 18% of BAT's total revenues, with significant contributions from its Velo nicotine pouch and Vuse vape brand. Despite these positive developments, BAT's overall revenue growth forecast remains at the lower end of 3 to 5%, and adjusted profits are projected to increase by 4 to 6%. The company anticipates a 2.5% decline in global cigarette volumes this year, which is a steeper drop than previously expected. BAT's CEO, Tadeu Marroco, expressed confidence in the company's financial trajectory, which supports its £1.3 billion share buyback program and progressive dividend policy, despite a 3.1% drop in shares during early trading.