British American Tobacco, the second-biggest international tobacco company by revenue, today cut its full-year revenue target for next-generation products.
It blamed the cut on a flat market in Japan and a product recall in the US.
The company said it expected revenue from cigarette alternatives - tobacco-heating devices and e-cigarettes - to reach £900m this year, down from a previous target of £1 billion.
The revision is due to a reduction in planned inventories in Japan, the most developed market for tobacco-heating devices, as to growth there has flattened, and the effect of a recall in the US of its Vuse Vibe.
The maker of Lucky Strike and Dunhill cigarettes also said currency fluctuations would hurt its full-year adjusted earnings per share growth by 7%, assuming rates were unchanged for the rest of the year.
On a constant currency basis, the company said it expected to exceed its target for high single-digit adjusted earnings per share growth.
The company made the comments in a trading update ahead of analyst meetings in coming weeks.
In cigarettes, BAT said it was gaining share in an overall market whose volume is expected to shrink about 3.5%this year, as more people quit smoking.
In the US, industry volume is expected to fall 4-4.5% this year, with a slight improvement in the second half of the year.