BAT surpassed analysts’ expectations in the first half of 2025, reporting adjusted diluted earnings of 162 pence per share (vs. 159.4p in 2024 and consensus estimate of 154.8p). U.S. revenues, which represent roughly 44% of the group’s total, posted 3.7% constant-currency growth, the first uptick in three years. Driven by strong sales in its new-category offerings like Velo pouches, these smokeless products delivered a 3.9% rise and now account for over 18% of group revenue.
BAT reaffirmed full-year 2025 guidance, expecting top-line growth at the upper end of its 1–2% range, and adjusted operating profit growth of 1.5–2.5% (excluding Canada). The company faces headwinds from a 4% FX translation penalty and a roughly 2% decline in global tobacco industry volume. However, management remains confident about achieving mid-single-digit growth in its new categories moving forward.
To support shareholder value, the board has initiated a new share buyback program valued at £1.1 billion, expanding its previous plan by £200 million. Leaders also highlighted a partnership with Accenture aimed at operational efficiencies, including delivering £500 million in annual savings by 2028.
