British American Tobacco (BAT) on Thursday lifted its annual earnings growth forecast as surging demand for its Velo nicotine pouches and a strong US performance offset a sharp decline in Asia.The maker of Lucky Strike and Dunhill cigarettes said it now expects full-year adjusted earnings per share growth towards the middle of its 5%-8% medium-term guidance range, a step up from its earlier guidance of the lower end of that range.It maintained its guidance for revenue and adjusted operating profit growth at the lower end of their respective 3-5% and 4-6% ranges, a move that had disappointed investors in June.BAT has been grappling with a decline in demand for traditional cigarettes and has poured investment into smoking alternatives to boost profits.It also undertook a sweeping AI-driven overhaul last month under which it plans to cut about 5,500 jobs and shift roughly 3,500 roles to third parties, including consultancy Accenture, in a restructuring that excludes the US, its biggest market.BAT is also expected to benefit from a US FDA move that now allows the sale of some unlicensed vapes, which the company has said opens up a market worth as much as £7bn (R156bn).Its new categories revenue — spanning vapour, heated products and modern oral — accelerated to 18% growth at constant currencies, with modern oral volume share in its top markets rising 8.4 percentage points to 39.2%.The company reported adjusted earnings of 164 pence per share for the six months ended June, a 7.9% rise from a year ago, and above a company-compiled consensus of 158.5p.Reuters