British American Tobacco PLC on Dec. 12 maintained its fiscal 2018 guidance and said it expects to surpass its "high single-figure constant-currency adjusted diluted EPS growth target" for the year.

In a trading update for the fiscal second half, the tobacco products maker said it anticipates continued strong market share growth in its combustibles and tobacco heating products (THP), vapor and oral businesses. Specifically, its THP and vapor categories are on track to reach £900 million in reported revenue, with oral tobacco expected to deliver strong constant-currency revenue growth on a representative basis.

Furthermore, BAT said its performance in the U.S. is in line with its expectation that industry volumes will decline about 4% to 4.5% in 2018.

It is also in ongoing discussions with U.S. regulators about the proposed ban on menthol cigarettes, insisting that the regulation "should be developed through a comprehensive rule-making process, be based on a thorough review of the science and consider the unintended consequences, in order to withstand judicial review."

BAT said its deleveraging plan was on-track, with net debt to adjusted EBITDA expected to fall by 0.4x to 3.9x by the end of the fiscal year, excluding the impact of foreign exchange.

Separately, the company announced that non-executive director Lionel Nowell III will retire from its board, effective Dec. 12.

In mid-morning trading in London, BAT's shares were up 56 pence, or 2.1%, at 2,781 pence.