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Tag: Tadeu Marroco

  • BAT Reaffirms FY26 Guidance at Low End of Target

    BAT Reaffirms FY26 Guidance at Low End of Target

    British American Tobacco reaffirmed its full-year 2026 guidance with its presentation at the Consumer Analyst Group of New York Conference today (Feb. 18), signaling results will land at the lower end of its previously issued targets. BAT CEO Tadeu Marroco and Reynolds American President David Waterfieldhe said the group expects constant-currency revenue growth of 3–5%, adjusted profit from operations growth of 4–6% (adjusted for Canada and weighted toward the second half) and adjusted diluted EPS growth of 5–8%. BAT said its smokeless portfolio — including Vuse, glo and Velo — reached more than 31 million adult consumers globally by the end of 2025, contributing 18.2% of its £25.6 billion annual revenue. The company is targeting 50 million smokeless consumers by 2030 and aims for these products to generate half of group revenue by 2035, as it continues its transition toward reduced-risk categories.

    “We are committed to actively encouraging adult smokers, who would otherwise choose to continue to smoke, to make a full switch to smokeless alternatives,” Marroco said. “Regulation is not homogeneous globally. This affects not only which products are legally available for consumers, but also communication freedoms and excise levels.

    “BAT has taken a consumer-led, multi-category approach from the outset.  While initially more complex and costly to execute, it has proven to be the right strategy. Together with leveraging our brand building expertise, and global distribution reach, this enables us to maximize our opportunity – to switch smokers who would otherwise choose to continue to smoke, drive harm reduction, and create value.”

  • U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    U.S. Vape Block on Imports Could Cut Illicits by a Third: BAT

    A potential U.S. ban on imports of certain disposable e-cigarettes could reduce illegal vape sales by as much as one-third, according to British American Tobacco CEO Tadeu Marroco. BAT estimates unauthorized products, largely manufactured in China, account for roughly 70% of U.S. e-cigarette sales, undermining both regulated vape brands and traditional cigarette businesses. The company is pursuing two cases before the U.S. International Trade Commission (ITC) seeking to block imports of products that infringe its patents. An ITC judge previously recommended an exclusion order, with a final decision expected in March, followed by a 60-day presidential review.

    “What we want to see in the US is a level playing field because in a level playing field, we know that we can win,” Marroco said.

    Marroco cautioned that any market impact would likely be delayed due to existing supply chains and inventory levels, suggesting significant effects may not occur until 2027. He also indicated that the U.S. Food and Drug Administration could consider alternative regulatory approaches for e-cigarettes, potentially including flavored products, as the agency evaluates ways to streamline product authorization processes.

  • Momentum Driving BAT Confidence in 2026 Delivery

    Momentum Driving BAT Confidence in 2026 Delivery

    British American Tobacco reported “accelerating momentum” in 2025, driven by strong U.S. combustible sales and rapid growth of its Velo nicotine pouch brand, while total smokeless consumers rose to 34.1 million. The company said new category revenue returned to double-digit growth in the second half of the year and now accounts for 18.2% of total revenue, as BAT continues investing in products such as Vuse, glo and Velo to support long-term transformation.

    BAT expects 2026 performance to fall at the lower end of its mid-term growth targets, projecting 3–5% revenue growth and 5–8% adjusted EPS growth amid continued investment and foreign exchange headwinds, while maintaining dividend increases and launching a £1.3 billion share buyback.

    “Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions and enhanced execution,” company CEO Tadeu Marroco said. “Our New Categories revenue is accelerating, returning to double-digit growth in H2, driven by strong Velo growth in all regions. We continue to prioritize accelerating growth in category contribution through investment in our most profitable markets.”

  • BAT CEO Talks Investment in Italy

    BAT CEO Talks Investment in Italy

    British American Tobacco CEO Tadeu Marroco was recently in Rome meeting with stakeholders, and spoke with Milano Finanza about how the company views Italy as a strategically important market, citing its stable regulatory and taxation framework, strong supplier base, and growing adoption of next-generation products, which now account for around 45% of BAT’s Italian revenue compared with 18% globally.

    “Italy represents one of the most strategic markets for BAT and [is] one of the countries in which the group can concretely realize its vision for the future,” he said. “From Italy, we continue to buy tobacco up to 15 thousand tons, which will be purchased in the three-year period 2026-2028, supporting over 400 small and medium-sized enterprises that employ 6,000 people.”

    Marroco said BAT is reinforcing its European innovation and production footprint through its Trieste Innovation Hub, where the company is investing €500 million through 2027 to expand non-combustible product manufacturing. The facility is expected to reach full capacity with 16 production lines and generate employment growth linked to BAT’s broader supply chain investments, including continued tobacco sourcing agreements supporting domestic agriculture and SMEs. The company maintains its target of deriving 50% of global revenue from smoke-free products by 2035, while also navigating regulatory complexity and illicit market growth in key regions, which BAT argues can hinder innovation and undermine public health and fiscal outcomes.

  • 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.

  • BAT Announces Management Board Changes

    BAT Announces Management Board Changes

    BAT today (September 11) announced upcoming changes to its management board. After 23 years with the group, including 11 as general counsel and board member, Jerome Abelman will step down as Director, Legal and General Counsel on effective December 31. Paul McCrory, currently Director, Corporate and Regulatory Affairs, will become Director, Legal and General Counsel Designate on October 1 before assuming the role fully on January 1, 2026. McCrory has been with BAT for over 18 years and joined the board in 2023.

    From October 1, Corporate and Regulatory Affairs will transfer to Kingsley Wheaton, Chief Corporate Officer. CEO Tadeu Marroco thanked Abelman for his leadership and welcomed McCrory to his new role, citing his deep experience and collaborative leadership.

  • BAT Issues First-Half Update

    BAT Issues First-Half Update

    BAT published its 2025 First Half Pre-Close Trading Update yesterday (June 3), followed by a short conference call and Q&A session hosted by Tadeu Marroco, Chief Executive, Soraya Benchikh, Chief Financial Officer, and Victoria Buxton, Group Head of Investor Relations.

    “Our revenue performance in H1 is slightly ahead of our previous guidance, and we now expect to deliver FY revenue growth of 1-2%, supporting 1.5 to 2.5% adjusted profit from operations growth,” Marroco said. “2025 is a deployment year and, as previously highlighted, we expect our performance to be H2 weighted, mainly driven by the roll-out of New Category innovations in key markets from the middle of the year.”

    Improved performance in the modern oral category and U.S. combustibles led the company to raise 2025 revenue growth guidance to 1%-2% from just 1% prior, analysts said. BAT’s shares went up 2% after the reporting.

    Click here for the full update and a transcript of Marroco’s comments.

  • Potential Compensation Boon for BAT CEO

    Potential Compensation Boon for BAT CEO

    A newly proposed incentive scheme by British American Tobacco could make its chief executive, Tadeu Marroco, one of the highest-paid executives in the world. According to the Financial Times, “The chief executive of British American Tobacco could receive up to £18.2mn in a new three-year pay deal, making him one of the highest earning FTSE bosses as big UK companies move to narrow the pay gap with US rivals.” The compensation package would be based on BAT hitting certain targets — such as increasing the profitability of cigarette alternatives — and if its share price rose 50% over that time span.

    Marroco, who has been chief executive since May 2023, will be guaranteed a minimum of £1.8 million in salary, pension, and benefits annually the company said. He received £6 million in total last year.

    “The increasingly competitive global market for senior talent has resulted in upward pressure on pay . . . With many US-based candidates, we observe that pay disparities are particularly evident with incentive opportunities, which tend to be far above typical UK levels,” BAT said in its annual report.

    It added that one-third of its senior hires over the past three years had been from the U.S. and that it had “an elevated vacancy rate across senior management levels, with lengthening times to hire”.

    Shareholders will vote on the new pay deal, which was first reported in The Sunday Times, at the company’s annual general meeting in April.