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  • U.S. Momentum Keeps BAT FY25 On Track

    U.S. Momentum Keeps BAT FY25 On Track

    BAT released its 2025 full-year pre-close trading update today (December 9), saying it expects around 2% revenue and adjusted operating profit growth in FY25, with New Category revenues accelerating to double-digit growth in H2 to deliver mid-single-digit growth for the full year. Performance is being led by the U.S., where stronger combustibles results and Velo Plus momentum are driving revenue and profit, with Velo Plus on track to be profitable for the full year. Early federal and state enforcement efforts against illicit vapor products are also supporting recent improvements in Vuse volumes and revenues.

    Growth in New Categories is being driven primarily by Velo, now the “fastest-growing Modern Oral brand globally,” with strong share gains across priority markets and accelerating U.S. performance. While glo revenue remains broadly flat due to competitive pressure and platform transitions, the company is launching glo Hilo in premium heated tobacco markets. Vuse is showing improving H2 trends, supported by enforcement against illicit products, and early traction for the premium Vuse Ultra platform in Canada, Germany, and France, despite ongoing headwinds in the U.S. and Canada.

    Looking ahead, the company remains confident in its mid-term growth targets from 2026, guiding for 3–5% revenue growth, 4–6% profit growth, and 5–8% EPS growth, with 2026 likely at the lower end of the range. Strong cash generation continues, with operating cash flow conversion expected to exceed 95% and leverage targeted to fall to 2.0–2.5x by end-2026. Capital returns remain a priority, with progressive dividends and an expanded £1.3bn share buyback program for FY26.

  • BAT Completes $420M Block Trade of ITC Hotel Shares

    BAT Completes $420M Block Trade of ITC Hotel Shares

    On December 4, British American Tobacco announced that its subsidiaries planned to sell between 7% and 15.3% of their shares in ITC Hotels through an accelerated bookbuild, with the exact number of shares to be determined by optimal pricing. Proceeds from the sale, CEO Tadeu Marroco said, would help BAT move toward its “target 2–2.5x net debt/EBITDA leverage” by the end of 2026.

    On December 5, the trade was completed, with 187.5 million ordinary shares going to investors by way of an accelerated bookbuild process. The Block Trade Shares represent 9% of ITC Hotels’ issued ordinary share capital, and amounted to INR 38.2 bn ($420 million). Following the trade, BAT still retains a 6.3% holding in ITC Hotels.

    Established in 1975, the business of ITC Hotels has grown to encompass over 140 hotels across more than 90 destinations in the Indian subcontinent.

  • Pakistan’s Pouch Market Reshaping Tobacco Landscape

    With a smoking rate of 19.5% and high instances of smoking-related illnesses, Pakistan is beginning to embrace the shift to lower-risk alternative products, including a quickly expanding nicotine pouch market that is not only good news for health advocates but is creating business opportunities as well.

    Philip Morris (Pakistan) Limited recently began local production of ZYN at its Sahiwal facility, following British American Tobacco’s early entrance with Velo in 2019, solidifying Pakistan as a key growth market for modern oral nicotine products. Industry momentum is being driven by strong demand from adult tobacco users seeking alternatives to cigarettes and traditional oral products such as paan, naswar, and gutka. A recent LMIC case study cited Pakistan as having the world’s largest consumer base for nicotine pouches, noting toxicant levels far lower than in conventional oral tobacco.

    Local production is boosting jobs, tax revenue, and regulatory oversight, but authorities are expected to weigh stricter age controls, product standards, and monitoring as the category scales.

  • BAT to Sell Stake in ITC Hotels to Reduce Debt

    BAT to Sell Stake in ITC Hotels to Reduce Debt

    British American Tobacco announced that its subsidiaries plan to sell between 7% and 15.3% of their shares in ITC Hotels through an accelerated bookbuild. The exact number of shares will be set to optimize pricing. Established in 1975, the business of ITC Hotels has grown to encompass over 140 hotels across more than 90 destinations in the Indian subcontinent.

    Proceeds from the sale will help BAT move toward its “target 2–2.5x net debt/EBITDA leverage” by the end of 2026. BAT’s stake in ITC Hotels arose from a recent demerger and is not considered a strategic holding, CEO Tadeu Marroco said. Final sale details will be disclosed after the transaction closes.

  • VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO and the McLaren Formula 1 Team have unveiled a special, fan-created livery for the 2025 Abu Dhabi Grand Prix. Designed by nine McLaren superfans from around the world, the livery features bespoke icons inspired by personal memories, team milestones, and McLaren’s broader community spirit.

    VELO, McLaren Unveil Fan-Created Livery for Abu Dhabi GP

    VELO and the McLaren Formula 1 Team have unveiled a special, fan-created livery for the 2025 Abu Dhabi Grand Prix. Designed by nine McLaren superfans from around the world, the livery features bespoke icons inspired by personal memories, team milestones, and McLaren’s broader community spirit.

    The project is part of the “Live Your Fandom” campaign, which has delivered unique fan experiences throughout the season. In August, the selected superfans visited the McLaren Technology Centre for a behind-the-scenes tour, a design workshop, and sessions with McLaren Racing CEO Zak Brown and driver Lando Norris—where they unknowingly helped shape the final livery.

    “VELO is proud to celebrate these experiences that allow fans to embrace their own unique fandom as part of a community,” said Luca Angiolillo, Global Head of Partnerships at BAT, “and we can’t wait to see this special fan-driven takeover take center stage at the season finale.” In August, the selected superfans visited the McLaren Technology Centre for a behind-the-scenes tour, a design workshop, and sessions with McLaren Racing CEO Zak Brown and driver Lando Norris—where they unknowingly helped shape the final livery.

    “VELO is proud to celebrate these experiences that allow fans to embrace their own unique fandom as part of a community,” said Luca Angiolillo, Global Head of Partnerships at BAT, “and we can’t wait to see this special fan-driven takeover take center stage at the season finale.”

  • Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya Stays Defamation Case Based on ‘Tobacco Bribes’

    Kenya’s Court of Appeal temporarily halted the defamation case filed by National Assembly Speaker Moses Wetang’ula against the BBC, which he accused of defaming him in the 2015 documentary Panorama: The Secret Bribes of Big Tobacco. Wetang’ula seeks damages and costs over allegations that British American Tobacco bribed him while he served as Bungoma Senator.

    The BBC argued that continuing the High Court case would undermine its appeal and block access to crucial evidence from UK courts. Wetang’ula opposed the request, calling it procedurally flawed and delayed.

    The appellate court agreed the BBC raised an arguable point, noting the delay was not excessive and emphasizing the constitutional right to a fair trial. It granted the stay, pausing the High Court proceedings until the appeal is resolved, with costs to follow the outcome.

  • BAT Malaysia Adjusts Prices, Eyes Market Stability

    BAT Malaysia Adjusts Prices, Eyes Market Stability

    British American Tobacco (Malaysia) Bhd announced new cigarette prices ranging from RM12.40 to RM18.40 per pack, effective November 21, following the government’s Budget 2026 excise duty increase. The move, approved by the Ministry of Health, marks the first excise adjustment in a decade and comes at a critical time for the company’s market positioning.

    BAT Malaysia managing director Nedal Salem said the moderate increase was a “step in the right direction” given Malaysia’s economic environment, but warned that steep hikes in the past have fueled the tobacco black market, which now accounts for 54% of total cigarette consumption. With illicit trade eroding legitimate sales, BAT Malaysia’s ability to maintain market share hinges on balancing affordability with regulatory compliance.

    Industry analysts note that while higher prices could pressure consumer demand, BAT Malaysia stands to benefit from stronger enforcement against contraband. Government crackdowns saved RM15.5 billion ($3.7 billion) in lost revenue over the past two years, and a new RM700 million ($168 million) allocation for enforcement in 2026 is expected to further curb illegal trade. Salem emphasized that BAT Malaysia fully supports these initiatives, positioning the company to protect its sales base and stabilize market share despite the excise-driven price adjustment.

  • BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    BAT Zambia Defends ‘Utter Hypocrisy’ Criticism

    British American Tobacco (BAT) was criticized for lobbying against elements of Zambia’s proposed Tobacco Control Bill, which includes restrictions similar to those already in place in the UK, home to BAT’s global headquarters. According to The Guardian, a letter from BAT Zambia to government ministers requested delays or amendments to proposed bans on advertising and sponsorship, reductions in the size of graphic health warnings, and the removal of restrictions on flavored tobacco products. The company also suggested lighter penalties for industry violations.

    Health advocates, including campaigner Master Chimbala, called the company’s stance “utter hypocrisy,” noting that similar measures have long been enforced in the UK. The draft bill would expand Zambia’s regulations to include e-cigarettes and require graphic warnings covering 75% of packaging.

    In response, BAT Zambia said it supports “progressive regulation” and participates in the legislative process in line with local law, emphasizing the need to balance public health goals with concerns about illicit trade and market realities.

    “The company participates in the country’s legislative process in line with the relevant frameworks which provide for stakeholder participation in policymaking,” a BAT Zambia spokesperson said. “We advocate for progressive regulation to achieve intended public health goals, while acknowledging the spectrum of rights and obligations on industry, consumers, and related stakeholders.”

  • BAT Launches Year-End Vape Promotion in Korea

    BAT Launches Year-End Vape Promotion in Korea

    Today (November 12), BAT Rothmans announced a promotion for its Glo Hyper series in South Korea, running both online and in-store through the end of the year. First-time buyers can purchase devices from the Glo Hyper Series, including the flagship Glo Hyper Pro, at special discounted prices. “The Hyper Pro features an EasyView screen and TasteSelect Dial for personalized heating control, while all neo sticks use StickSeal technology to prevent tobacco leaf residue.”

    A BAT Rothmans spokesperson said the year-end promotion aims to let more consumers experience the brand’s “innovative technology and differentiated experience at a reasonable price,” at the time of the year when colder weather drives people indoors. The company said surveys show odor reduction is a leading reason for smokers switching to vapes.  

    Government data shows e-cigarette sales in South Korea rose 8.3% year-on-year, capturing 18.4% of the total tobacco market in 2024—up from just 2.2% in 2017.

  • European Patent Office Sides with Nicoventures on Vape Dispute

    European Patent Office Sides with Nicoventures on Vape Dispute

    The European Patent Office’s Board of Appeal upheld British American Tobacco subsidiary Nicoventures Trading Ltd.’s vape patent EP3354144, rejecting a challenge by Philip Morris Products S.A., according to Law360. The board found that the patent’s method—activating a heater based on predetermined parameters independent of puff counts—was “inventive.” It also ruled that the patent’s description of vaporization without combustion and general thermal insulation was sufficiently supported by the original filing.

    Additionally, the board clarified that the term “predetermined period of use” referred to a fixed timeframe, not puff duration, distinguishing it from prior patents. All of Philip Morris’s objections were dismissed.