Imperial Brands has warned over annual sales after a sharp slowdown in sales of vaping products in the United States following a crackdown on the flavoured e-cigarettes and tighter regulation.
Imperial said it had seen a "marked" slowdown in the vaping market in recent weeks, with rising numbers of wholesalers and retailers not ordering or not allowing the promotion of vaping products.
The group said it expects overall revenue growth of its cigarette alternatives - or so-called next generation products - at a lower-than-expected 50% this year.
This, together with tougher trading conditions across Africa, Asia and Australasia, means it now sees group revenues growing by slower-than-forecast 2% and earnings per share to be "broadly flat".
Imperial said: "Whilst this is disappointing for the current year, we believe that NGP (next generation products) provides a significant opportunity to deliver additive growth to complement our tobacco business.
"We continue to refine our investment behind building a strong and profitable NGP business in a rapidly evolving market."
