British American Tobacco PLC

Latest Results (17.12.2025):

British American Tobacco p.l.c. — Full year 2024 results (year ended 31 December 2024): reported revenue £25,867m (‑5.2% vs 2023), adjusted organic revenue +1.3% at constant rates; reported profit from operations £2,736m (2023: loss £15,751m) with adjusted organic profit from operations up 1.4% at constant rates; New Categories and Smokeless continue to grow (Smokeless now 17.5% of Group revenue) while the Group recognises a £6.2bn provision in respect of the proposed Canada settlement.

Revenue

Reported revenue £25,867m, down 5.2% (translational FX headwind and sale of Russia/Belarus); on an organic constant‑rate basis revenue rose 1.3%. New Categories revenue £3,432m (+8.9% organic at constant rates).

Profit from operations & EPS

Reported profit from operations £2,736m (2023: loss £15,751m) reflecting large prior‑year impairments and lower amortisation/impairment in 2024; adjusted organic profit from operations +1.4% at constant rates. Reported diluted EPS 136.0p; adjusted diluted EPS 362.5p (adjusted organic diluted EPS +3.6% at constant rates).

New Categories / Smokeless

Smokeless consumers +3.6m to 29.1m; Smokeless revenue 17.5% of Group sales (up 1.0ppt). New Categories contribution increased by £251m on an adjusted organic constant‑rate basis; category contribution margin for New Categories 7.1% (improvement of c.7.1 ppts vs 2023). Modern Oral showed very strong growth (volume +55%, US volume +234%).

Combustibles & volume

Total combustibles volume down 9.0% (‑5.2% on an organic basis); total combustibles organic revenue essentially flat (+0.1% at constant rates) with Group price/mix +5.3% offsetting lower volumes. Group cigarette & HP volume share in Top markets +10bps; value share −30bps.

Cash, leverage & returns

Free cash flow before dividends £7,901m; operating cash conversion 101%. Adjusted net debt / adjusted EBITDA 2.44x (down 0.13x). Dividend increased 2.0% to 240.24p and a £900m share buy‑back is planned for 2025.

Canada settlement provision

Following the Proposed Plans in Canada, BAT recognised a £6,203m charge (included in reported items) comprising £2,456m of cash/cash equivalents/investments on the balance sheet and £3,747m estimate of remaining liability. Management will present certain 2025 measures “as adjusted for Canada” to aid comparability.

U.S. market and regulatory risks

U.S. performance impacted by illicit single‑use vapour products that depressed legal vapour consumables; cigarette volume in the U.S. down c.10.1%. BAT reports recovery actions underway and strong Modern Oral traction (Velo, Grizzly) but notes enforcement and regulatory uncertainty remain key headwinds.

Guidance & outlook for 2025

Expect industry volume down c.2%. Group guidance: ~1% revenue growth at constant rates; adjusted profit from operations growth 1.5–2.5% (adjusted for Canada) with H2 weighting; net finance costs ~£1.8bn (adjusted for Canada); gross capex ~£650m; continue to target 2.0–2.5x adjusted net debt/EBITDA by 2026 and maintain dividend growth.

Sustainability & transformation

BAT reiterates strategic goal “Building a Smokeless World” and sets out progress: product initiative Omni™, SBT submissions, reduced Scope 1/2 emissions, and circularity pilots. Management emphasises ongoing investment in New Categories while prioritising returns and deleveraging.