LONDON, (Reuters) – British American Tobacco reported Friday a 7% increase in adjusted full-year revenue to 25.7 Billion Pounds ($34.8 Billions). This was largely due to sales of e-cigarettes as well as oral nicotine.

The world’s second-largest tobacco company also announced a dividend increase of 1.0% to 217.8 pence and a 2 billion pound share repurchase programme for 2022.

It posted a 51% rise to 2.05 billion pounds in adjusted sales of its “new categories” product line which includes e-cigarettes, heated tobacco and oral nicotine. Though it has not yet turned a profit from the division, BAT(LON:) stated that they were on track for revenue and profitability of at least 5 billion pounds by 2025.

Ross Hindle from Third Bridge said, “Continued growth is a cornerstone for BAT’s longer-term plans of success.” With over 1.1 billion people still smoking, it is very attractive to convert them towards New Categories.

According to Vuse, the number of non-combustible items used by consumers was 4.8 millions more than in 2013.

BAT predicted that global tobacco industry volumes would fall by approximately 2.5% this fiscal year. These volumes are expected to stay flat in 2021 according to BAT.

Adjusted diluted earnings per share (EPS), before adjusting items and including dilutive effects of employee stock schemes, fell 0.8% from 331.7 pence to 329.0 pence.

Lucky Strike, Camel, and Camel cigarettes are made by Lucky Strike. They expect steady currency revenue growth to be between 3% and 5.5%, with high-single-figure constant currency adjusted EBIT growth weighted towards second half.

BAT shares were flat during morning trading, despite having risen by more than 20% over the last year.

($1 = 0.7388 pounds)