British American Tobacco PLC

Latest Results (30.01.2026):

British American Tobacco PLC — Half‑Year 2025 (six months to 30 June 2025): reported revenue £12,069m (‑2.2% reported, +1.8% at constant FX). Reported profit from operations £5,069m (+19.1% year‑on‑year) and reported diluted EPS 203.6p (+1.6%). On an adjusted basis (as adjusted for Canada and at constant currency) BAT delivered modest underlying operational growth: adjusted profit from operations +1.9% at constant FX and adjusted diluted EPS (as adjusted for Canada, at constant FX) +1.7% to 162.1p. Management says the group is on track to deliver full‑year 2025 guidance.

Headline revenue and mix

Revenue £12,069m (reported ­‑2.2%; +1.8% at constant rates). New Categories revenue £1,651m (flat reported; +2.4% at constant FX). Smokeless products now 18.2% of Group revenue (up 70bps vs FY24).

Profit, margins and adjusted performance

Reported profit from operations £5,069m (+19.1%) and reported operating margin 42.0% (+7.5 ppts). Adjusted profit from operations (as adjusted for Canada) grew +1.9% at constant FX; adjusted operating margin (as adjusted for Canada, at CC) was flat at c.43.2%.

Earnings per share

Reported diluted EPS 203.6p (+1.6%). Adjusted diluted EPS at constant rates 169.1p (‑0.1%); adjusted diluted EPS as adjusted for Canada at constant rates 162.1p (+1.7%).

New Categories — momentum and profitability

New Categories contribution £174m (category contribution up 38.6% to £179m at constant FX per commentary); New Categories contribution margin 10.6% (+2.8 ppts at constant FX). Modern Oral and Velo were key drivers.

Product highlights

Modern Oral: revenue +40.6% at constant FX (volume +42.2%), with strong U.S. roll‑out (Velo Plus). Vapour: revenue down ~13.0% at constant FX (illicit single‑use devices cited as a headwind, especially in U.S./Canada). Heated Products (HP): revenue +3.1% at constant FX with glo Hilo roll‑outs planned H2.

Regional performance

U.S.: revenue +3.7% at constant FX; combustibles price/mix +11.4%; Modern Oral in U.S. up strongly (Velo Plus). AME: +3.5% at constant FX (strength in Brazil, Türkiye, Romania). APMEA: down 4.8% at constant FX (Australia and Bangladesh regulatory/fiscal headwinds).

Cash, balance sheet and shareholder returns

Net cash generated from operations £2,309m (‑27%); free cash flow before dividends £1,234m (‑42%). Borrowings (incl. leases) £35,208m; adjusted net debt £29,749m (‑5.1%). Monetised part of ITC stake for ~£1.1bn and increased 2025 buy‑back programme by £200m to £1.1bn (£450m of buybacks executed in H1; 14.08m shares cancelled in H1).

Canada litigation update

Group recorded a net credit of £575m in H1 2025 following an update to the Canadian settlement provision assumptions (present‑value effect); a provision of £6.2bn was recognised in 2024. BAT excludes Canada (excluding New Categories) when presenting certain adjusted performance metrics (“as adjusted for Canada”).

Outlook and guidance

Management: “on track” for FY2025 guidance. Key 2025 guidance items at constant rates include revenue growth at the top end of 1.0–2.0%, mid‑single digit New Category growth, adjusted PFO growth 1.5–2.5% (adj. for Canada), gross capex ~£650m, operating cash conversion target >90%, and commitment to dividend growth and £1.1bn share buy‑back.