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  • BAT to Shut Down Only South African Plant

    BAT to Shut Down Only South African Plant

    BAT South Africa (BATSA) announced it will cease local production of factory-manufactured cigarettes and close its sole manufacturing facility in Heidelberg, Gauteng, by the end of 2026, citing the overwhelming growth of illicit cigarettes in the market. The company estimates that illegal products now account for about 75% of cigarette sales in South Africa, rendering local manufacturing commercially unviable. The plant is currently operating at just 35% of capacity due to sustained volume losses linked to the illicit trade.

    “We have tried everything to ensure we don’t have to close this facility, which has been a part of the Heidelberg community since 1975, including implementing various efficiency initiatives over the years,” said Johnny Moloto, head of corporate and regulatory affairs at BAT Sub-Saharan Africa.  “But when three-quarters of your market is illicit, there’s a limit to what any company can do. We’ve reached that limit.”

    BATSA said the closure will directly affect approximately 230 employees and their families and will also have knock-on effects across the local value chain, including suppliers, logistics providers, and contractors in the Lesedi community. The company has initiated a formal consultation process with employees and unions in line with labor law and expects this process to conclude by the end of March 2026, ahead of the full shutdown later in the year. Despite the closure, BATSA stressed it is not exiting South Africa and will transition to an import-based supply model to continue serving adult consumers.

    The company said it has spent more than a decade engaging with government and law-enforcement authorities, warning that policy decisions such as the 2020 tobacco sales ban, above-inflation excise increases, and proposed new tobacco legislation have widened the gap between legal and illegal products. BATSA argued that enforcement efforts have been insufficient to protect legitimate businesses and jobs, with illicit cigarettes costing an estimated R28 billion ($1.7 billion) a year in lost tax revenue. BATSA also warned that illicit trade is increasingly affecting other sectors, including alcohol, pharmaceuticals, and consumer goods.

    The growth of illicit trade accelerated after a Covid-era ban on tobacco sales in 2020, from which BATSA says the legal market never recovered. BATSA said it could reconsider local manufacturing if there is sustained progress in curbing illicit trade but cautioned that proposed new tobacco legislation and rising excise duties risk further worsening the problem.

  • BAT to Cut 59% of Jobs from Belgium Facility

    BAT to Cut 59% of Jobs from Belgium Facility

    Yesterday morning (January 14) at a special works council meeting, BAT Belgium announced plans to cut up to 51 of its 87 jobs at its Groot-Bijgaarden facility as part of a proposed restructuring driven by mounting regulatory and economic pressures, according to Retail Detail. The company said it has initiated a collective redundancy procedure, with 48 of the 74 roles in its commercial unit and three of 13 positions in other departments potentially affected, subject to consultations with social partners.

    According to BAT, increasing regulation, bans on certain nicotine products, rising excise duties, and the expansion of the illegal tobacco market have led to a sustained erosion of revenue and weighed heavily on business performance. The company said the restructuring aims to create a more efficient and agile organization in response to these challenges.

  • British American Tobacco Share Buyback Update

    British American Tobacco Share Buyback Update

    According to Tip Ranks, British American Tobacco repurchased 146,615 of its ordinary shares yesterday (January 5) under its shareholder-approved buyback program, paying a volume-weighted average price of 4,101.38 pence per share. The company plans to cancel the repurchased shares, reducing its outstanding ordinary shares with voting rights to 2,179,187,085 while maintaining 132,988,352 shares in treasury. The move is expected to slightly enhance earnings per share and signals continued capital return discipline to shareholders.

  • BAT Malaysia Designates New Chairman

    BAT Malaysia Designates New Chairman

    British American Tobacco (Malaysia) Bhd redesignated Datuk Sri Mohd Nizom Sairi as chairman of the board, effective January 1, 2026. He succeeds Tan Sri Aseh Che Mat, who will step down on December 31, after completing the maximum nine-year tenure as an independent non-executive director under the group’s governance rules.

    Mohd Nizom was appointed as an independent non-executive director of BAT Malaysia on October 1. He previously spent 38 years with the Inland Revenue Board of Malaysia, serving as CEO and director general from 2021 until his retirement from public service in December 2023. He currently serves as independent non-executive chairman of Varia Bhd and as an independent non-executive director of Jati Tinggi Group Bhd.

  • BAT Piloting Facial Age Verification in Italy

    BAT Piloting Facial Age Verification in Italy

    BAT Italia announced that it is partnering with digital identity firm Yoti to pilot facial age-verification technology aimed at preventing minors from purchasing nicotine products. The collaboration uses Yoti’s age-estimation service, which verifies whether a customer is over 18 through facial scanning without storing images or identifying individuals, in line with privacy regulations. The testing phase has begun in 119 BAT pop-up stores across Italy. Customers scan a QR code with their smartphone to initiate the process, adding an additional layer to standard ID checks. BAT said the system is designed to strengthen responsible sales practices for nicotine products.

    According to BAT, data from an earlier rollout in Croatia showed a 99% accuracy rate. BAT Italia said the introduction of the technology supports compliance with age-restriction laws and reflects the company’s stated commitment to preventing youth access to nicotine products.

  • Tobacco Industry Alarmed at Bangladesh’s Policy-Making Exclusion

    Tobacco Industry Alarmed at Bangladesh’s Policy-Making Exclusion

    Bangladesh’s three largest tobacco companies—British American Tobacco, Philip Morris, and JT International—issued a rare joint statement criticizing the government’s move to advance amendments to the Tobacco Control Act without broad stakeholder consultation. The companies said several provisions in the draft ordinance are not evidence-based and would create “far-reaching, negative consequences” for the economy, tax revenue, foreign investment and millions of people connected to the industry.

    The firms argued that proposed ingredient bans would threaten cigarette production entirely, while new retail licensing requirements could disrupt sales for 1.5 million small retailers and impact the livelihoods of 150,000 tobacco farmers. They also warned that prohibiting smokeless nicotine and tobacco products would remove alternatives for adult consumers and likely expand an already growing illicit market, citing experiences in India and Australia.

    Industry leaders urged the government to re-engage manufacturers, farmers, retailers, and other affected groups, noting that previous reforms in 2005 succeeded because of inclusive dialogue. With tobacco tax revenue growth slowing and the sector supporting an estimated 4.4 million livelihoods, the companies called for a “balanced and comprehensive solution” to avoid unintended economic and public-health setbacks.

  • Tobacco Industry Alarmed at Bangladesh’s Policy-Making Exclusion

    In a unified statement, the industry leaders, British American Tobacco Bangladesh (BATB), Philip Morris Bangladesh, and JT International Bangladesh, said:
    “While we fully support the Government’s commitment to public health, we believe that the certain measures proposed in the draft ordinance are not evidence-based, and will jeopardize the local livelihoods, further fuel an already growing illicit tobacco market, result in government tax revenue leak, and discourage further foreign investment – ultimately severely impacting an already declining industry.

    “Amongst multiple detrimental clauses, the draft includes an ingredient ban, which poses direct threat to the current cigarette operations in the country entirely. The ingredients included in the proposal for ban are essential for processing, manufacturing, and preservation, and are critical to ensure product integrity. In addition, other business-critical clauses, such as mandating retailers license to sell cigarettes, will impact the current 1.5 million retailers and disrupt the legal sales of tobacco products to the retailers and the operations of associated 150,000 tobacco farmers, until the licenses are made available to all the impacted parties and this requires a fair and transparent process with proper consultation.

    “Furthermore, the proposed prohibition of smokeless nicotine and tobacco products will take away legitimate choices for adult nicotine consumers, who are looking for reduced risk profile alternatives compared to combustible cigarettes, to transition from combustible tobacco. A de-facto ban on these important product categories will further boost an existing illicit market with compromised quality products, as seen in other countries such as India and Australia. The illicit products will not be controlled by any standards to ensure product quality, further increasing the risk for consumer access to these products.”

    “Enacting the proposed Bill without a holistic stakeholder-inclusive consultation poses significant risks to Bangladesh’s economy and public health objectives. We urge the Government to consider the views of manufacturers, impacted farmers, marginalized retailers, hawkers, printers, and others in the value chain, to avoid the negative, unintended consequences caused by these proposed amendments. We are fully committed to collaborating with the Government, alongside other stakeholders, to find a balanced and comprehensive solution.”

  • BAT Extends £1.3B Share Buyback for 2026

    BAT Extends £1.3B Share Buyback for 2026

    British American Tobacco extended its 2024 share buyback program by up to £1.3 billion for 2026. The company has entered an irrevocable, non-discretionary agreement with UBS AG London Branch to execute the next tranche, expected to run from January 2 to February 11, 2026, during the company’s closed period.

    UBS will act independently in making trading decisions. All repurchased shares will be cancelled to reduce the company’s share capital, with purchases carried out under existing shareholder authority and in line with UK market regulations.

  • 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.