Business
2025 H2 Pre-Close Trading Update
British American Tobacco PLC is on track for its full-year 2025 delivery, expecting approximately 2% revenue and adjusted profit from operations growth, with New Category revenue accelerating to double-digit growth in the second half. The company is reaffirming its 2026 guidance and announcing a £1.3 billion share buy-back program for 2026, aiming to reduce leverage to within the 2.0-2.5x range by the end of 2026. Strong momentum is noted in the U.S. market, with Velo Plus performing well and showing signs of profitability, while Vuse volumes and revenue are improving due to enforcement actions against illicit products. The company remains confident in delivering its mid-term growth algorithm from 2026. Disclaimer*
About this update from British American Tobacco P.l.c.
[{"type":"text","content":"\n\n9 December 2025\nOn track for FY25 delivery; Reaffirming 2026 guidance and announcing a £1.3bn share buy-back\n· Now expect c.2% revenue and adjusted profit from operations1 growth for FY25\n· New Category revenue growth accelerating to double-digit in H2, driving mid-single digit for FY\n· Strong U.S. revenue and profit2 momentum, driven by ongoing combustibles delivery and an excellent Velo Plus performance, which is on track for full-year profitability3\n· Early signs of Federal and State enforcement actions tackling U.S. illicit Vapour products support recent Vuse volume and revenue improvement\n· Velo driving strong global growth in Modern Oral, the fastest growing New Category\n· AME delivery remains strong; APMEA impacted by ongoing fiscal and regulatory headwinds in Bangladesh and Australia\n· Further acceleration in New Category contribution3, in line with our Quality Growth approach\n· Confident in sustainably delivering mid-term growth algorithm from 2026 (+3-5% revenue, +4-6% APFO1 and +5-8% adj. diluted EPS1), with 2026 performance expected at the lower end of the range\n· Strong cash generation and balanced capital allocation; on track to reduce leverage4 to within 2.0-2.5x by end 2026, alongside progressive dividends and sustainable share buy-backs - FY26: £1.3bn\n\nTadeu Marroco, Chief Executive\n\"Full-year delivery remains on track.\nI am particularly pleased with our momentum in the U.S., the world's largest nicotine value pool. Strengthened combustibles performance and enhanced commercial execution reinforce our future confidence. Velo Plus continues to deliver excellent results, reaching number 2 in volume and value share, with profitability3 on-track for full year.\nRecent Vuse volume and revenue improvement in the U.S. is encouraging, although the Vapour category continues to be impacted by illicit proliferation. Over time, we believe Vuse is well positioned to benefit from stronger Federal and State level enforcement.\nGroup New Category revenue is accelerating to double-digit growth in H2.\nVelo continues to grow strongly in all three regions, in the fastest growing New Category with the lowest risk*† profile, relative to c...