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Tag: British American Tobacco

  • BAT Hosts Capital Markets Day

    BAT Hosts Capital Markets Day

    British American Tobacco hosted its Capital Markets Day for institutional investors and analysts today (Sept. 29) in Winston-Salem, North Carolina, outlining its Horizon 2030 strategy. Chief Executive Tadeu Marroco and members of BAT’s management team highlighted the company’s global multi-category nicotine portfolio and capabilities. BAT said it expects New Category revenue to grow at a mid-teens rate through 2030 and New Category contribution margin to reach at least 30% by 2030, driven by premiumization, improved product mix, increased scale, and more targeted resource allocation.

    BAT said it remains on track to deliver toward the lower end of its 3%-5% revenue growth and 4%-6% adjusted profit from operations growth targets for 2026, with adjusted diluted EPS growth toward the middle of its 5%-8% range, all at constant currency rates. The company also expects to reach its 2.0-2.5x target leverage range by year-end and said it expects a 2%-2.5% translational foreign-exchange headwind to 2026 adjusted diluted EPS growth based on current spot rates.

  • BAT Completes CFO Leadership Transition   

    BAT Completes CFO Leadership Transition   

    Dragos Constantinescu officially began his position as Chief Financial Officer and Executive Director of British American Tobacco today (Sept. 1), according to separate LinkedIn posts by BAT and CEO Tadeu Marroco. The appointment was first announced in April. Constantinescu returns to BAT after previously spending 16 years with the company across senior finance, strategy and general management roles before leaving in 2019, where he most recently served as CEO of Asahi Europe & International.  

    Constantinescu’s return completes BAT’s CFO leadership transition, with interim CFO Javed Iqbal moving to his permanent role as Director, Digital and Information. BAT said Constantinescu’s international experience across the nicotine and broader FMCG sectors, combined with his previous knowledge of the company, will support its ongoing “A Better Tomorrow” transformation, strategic priorities and focus on sustainable growth and shareholder returns.  

  • BAT Expands Technology Partnership with ITC Infotech

    BAT Expands Technology Partnership with ITC Infotech

    British American Tobacco (BAT) signed a multi-year strategic technology agreement with ITC Infotech to accelerate the transformation of its technology operations, with a focus on AI-assisted innovation, skills development, and efficiency improvements.

    Under the expanded partnership, ITC Infotech will provide technology services to BAT in Poland, Romania, and India, while continuing to scale capabilities at BAT’s Future Capabilities Centre in India. The company will also support BAT’s technology centers in Malaysia and Mexico.

  • BAT Announces Marketing Board Changes

    BAT Announces Marketing Board Changes

    British American Tobacco announced a series of senior leadership changes, with Chief Marketing Officer Luciano Comin set to retire on Feb. 28, 2027, after a 34-year career with the company. Comin, who has served on the Management Board for eight years, including the past three as CMO, will be succeeded by Pascale Meulemeester, currently regional director for Asia Pacific, Middle East, and Africa (APMEA). Meulemeester will become Chief Marketing Officer Designate on Jan. 1, 2027, and assume the role on March 1, 2027.

    The company also appointed Celina Li as regional director designate for APMEA, effective Sept. 1. Li, currently Chief Commercial Officer and general manager, International & Ingredients at Ocean Spray Cranberries, will take over as APMEA Regional Director and join BAT’s management board on Jan. 1, 2027. CEO Tadeu Marroco said the appointments support BAT’s ongoing transformation strategy, highlighting Meulemeester’s brand-building expertise and Li’s international leadership and consumer business experience.

  • BAT Reports H1 Growth, Raises Confidence in 2026 Outlook

    BAT Reports H1 Growth, Raises Confidence in 2026 Outlook

    British American Tobacco reported H1 2026 revenue of £12.24 billion, up 1.4% on a reported basis and 2.9% at constant currency, with growth led by the U.S. and AME (Americas, Middle East, and Africa). New Categories revenue increased 18% at constant currency to £1.93 billion, driven by Modern Oral and a return to double-digit growth in U.S. Vapor. Smokeless products reached 35 million consumers and accounted for 19.8% of group revenue, while New Category contribution rose 54.7% to £257 million.

    U.S. revenue increased 8.5%, including 58.1% growth in New Categories, while AME revenue rose 0.9% and APMEA declined 6.3%. Modern Oral revenue grew 65.9%, extending BAT’s leadership with a 39.2% volume share in its top markets. Combustibles revenue increased 2.1%, helping fund the company’s transformation. Adjusted diluted EPS rose 7.9% on a Canada-adjusted constant-currency basis, while adjusted operating profit increased 3.5%.

    BAT expects full-year adjusted diluted EPS growth toward the middle of its 5%-8% guidance range and plans to roll out Velo Max nationally and selected adult-focused Vuse flavors in the U.S. during H2.

  • BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya Says Illicit Cigarettes Costing $92M in Lost Taxes

    BAT Kenya warned that illicit cigarettes now account for about 45% of Kenya’s cigarette market, costing the government an estimated Sh12 billion ($92.4 million) annually in lost tax revenue. The company said the illegal trade is undermining legitimate manufacturers and threatening an industry that supports about 80,000 livelihoods across farming, manufacturing, distribution, and retail.

    BAT Kenya Managing Director Sidney Wafula said illicit cigarettes, particularly those entering through porous borders including Uganda, are the company’s biggest challenge. “The continued rise in illicit cigarette trade remains the most significant threat to the sustainability of the legitimate industry and its value chains,” Wafula said, calling for sustained enforcement and stronger border controls.

    The warning came as BAT Kenya reported half-year revenue growth of 5% to Sh12.3 billion ($94.7 million), supported by export recovery and growth in nicotine pouches. The company said it expects continued growth in modern oral nicotine products while urging predictable tax policies and stronger action against illicit tobacco trade.

  • Velo and McLaren Offer F1 Dream Competition for Fans

    Velo and McLaren Offer F1 Dream Competition for Fans

    British American Tobacco’s Velo nicotine pouch brand and the McLaren Mastercard Formula 1 Team launched a global “Live Your Fandom” competition for the second half of the 2026 Formula 1 season, inviting adult fans to submit creative ideas for exclusive McLaren-themed experiences. The campaign, which builds on last year’s partnership, will reward selected entrants with fan-inspired experiences ranging from behind-the-scenes access to custom merchandise and meetings with McLaren executives.

    BAT said the promotion is designed to strengthen engagement with adult nicotine consumers while reinforcing Velo’s branding through its ongoing Formula 1 sponsorship with McLaren.

  • WSJ Optimistic with Tobacco Stocks

    WSJ Optimistic with Tobacco Stocks

    Reporting for The Wall Street Journal’s business section, Carol Ryan wrote that tobacco companies with growing smoke-free product portfolios are increasingly attracting investors, helping to narrow the stigma traditionally associated with cigarette stocks.

    “The taboo against owning cigarette stocks hasn’t gone away, but new gray areas are emerging,” she wrote. “Companies that make a big share of their sales from smoke-free products like vapes appear to be rejoining polite society, and are getting a boost to their stock-market valuations as a result.”

    Ryan said shares of British American Tobacco have roughly doubled over the past two years, outperforming many major technology stocks, as investors respond to a more favorable U.S. regulatory environment under the Trump administration and recent FDA guidance allowing new vapes and nicotine pouches to remain on the market while their premarket applications are under review. She said the policy could help legal manufacturers compete more effectively against the illicit vape market, which Jefferies Financial Group estimates accounts for more than two-thirds of U.S. vape sales.

    Ryan said the shift toward smoke-free products is also improving tobacco companies’ market valuations. Philip Morris International, which generated 41% of 2025 sales from non-combustible products, trades at a significant valuation premium to peers, while BAT —whose smoke-free portfolio represented nearly 20% of revenue last year — is targeting 50% by 2035. She said BAT has gained U.S. market share with its Velo Plus nicotine pouches and could benefit from the FDA’s new approach as it launches updated Vuse products. Ryan concluded that, as traditional cigarette volumes continue to decline and other consumer staples sectors struggle with weak growth, a broader group of investors is beginning to reconsider tobacco stocks, particularly companies demonstrating growth in reduced-risk nicotine products.

  • BAT’s Fit2Win Program Cutting Expenses, Jobs

    BAT’s Fit2Win Program Cutting Expenses, Jobs

    British American Tobacco said its Fit2Win transformation program remains on track to deliver approximately £600 million in annual cost savings by the end of 2028 as it simplifies operations, expands technology partnerships, and streamlines its global manufacturing footprint. Launched in 2025, BAT has already transitioned selected roles to partners, including Accenture, Systems Limited, and ITC Infotech, while launching a new Future Capabilities Centre in India and continuing to optimize its manufacturing network, including the previously announced closure of its Heidelberg factory in South Africa.

    Reuters reports that as part of the initiative, BAT plans to eliminate about 5,500 roles and transfer approximately 3,500 positions to strategic partners, affecting around 9,000 employees globally, excluding the United States. The company said the changes are intended to create a more agile, technology-enabled organization capable of responding more quickly to changing market conditions and accelerating its transition toward reduced-risk products.

    CEO Tadeu Marroco said Fit2Win is creating a “simpler, faster BAT,” adding that the company is supporting affected employees throughout the transition. The restructuring comes as BAT continues to adapt to declining cigarette volumes and invest in next-generation products such as Vuse e-cigarettes and Velo nicotine pouches.

  • BAT Repositions Vuse Alto on U.S. Price Tier

    BAT Repositions Vuse Alto on U.S. Price Tier

    British American Tobacco is repositioning its Vuse Alto vaping brand deeper into the U.S. mass market through lower retail pricing and promotional offers, according to industry channel checks cited by Ad Hoc News. Starter kits have been promoted for under $10 at some convenience chains, alongside discounted multi-pack pod offers aimed at adult smokers switching from cigarettes.

    The strategy, according to the report, strengthens Alto’s role as BAT’s core mid-priced closed-system vape product and supports the company’s broader effort to grow revenue from reduced-risk products. Vuse remains a key contributor to BAT’s New Categories business, with the company relying on pricing, retail distribution and repeat pod sales to drive volume growth in the highly regulated U.S. vapor market.