Despite global tobacco industry volumes expected to be down about 2%, British American Tobacco (BAT) expects to grow revenue and adjusted profit from operations by about 2% for the 2025 financial year.
In an update on Tuesday, CEO Tadeu Marroco said the company’s full-year delivery remained on track, and it was increasing its share buyback programme to £1.3bn for 2026.
“I am particularly pleased with our momentum in the US, the world’s largest nicotine value pool. Strengthened combustibles performance and enhanced commercial execution reinforce our future confidence,” he said.
He said the nicotine pouch product Velo Plus continued to deliver excellent results, reaching number two in volume and value share, with profitability on track for the full year.
He added that recent Vuse volume and revenue improvement in the US was encouraging, though the vapour category continued to be affected by illicit proliferation.
“Over time, we believe Vuse is well positioned to benefit from stronger federal and state-level enforcement,” he said. Vuse is BAT’s flagship global vapour brand.
The group’s New Category revenue is accelerating to double-digit growth in the second half, he added.
Velo, BAT’s popular brand of tobacco-free nicotine pouches, continues to grow strongly in all three regions.
The group remains focused on establishing its new-generation heated tobacco device, glo Hilo, as a premium offering across three priority markets in the second half. Further roll-outs are planned in 2026.
Vuse Ultra, its premium vaping platform, was driving encouraging early results in priority launch markets of Canada, Germany and France, he said.
“While there is more to do, we continue to prioritise investment in our most profitable markets and categories,” he said.
In October, Reuters reported that BAT said it has paused a pilot plan to launch an unlicensed disposable vape in the US, as the Food and Drug Administration moves to crack down on unregulated products and speed up licences.
BAT’s move reveals the complex battle big tobacco faces to compete with a wave of unregulated products, largely from China, that have dented profits in the $22bn US market for smoking alternatives, the news agency said.
Business Day previously reported that BAT, whose brands include Lucky Strike, Rothmans, Dunhill and Kent, reported an increase in its first-half earnings, which were driven by a recovery in its US operations and growth in its smokeless business, despite facing foreign exchange headwinds.
The company said adjusted diluted earnings per share, excluding Canada, for the six months ended June rose 1.7% at constant exchange rates thanks to improved operating performance and cost discipline.
Group revenue declined 2.2% to £12.07bn on a reported basis due to currency pressures but rose 1.8% at constant exchange rates. Profit from operations increased 19.1% to £5.07bn, helped by a favourable adjustment to the Canadian litigation provision.
The group will release its annual results on February 12.
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