Half-year Report

About this update from British American Tobacco P.l.c.

[{"type":"text","content":"\n \n \n \n \n \n 31 July 2025 - Press Release/Interim Results \n \n \n \n \n \n \n \n British American Tobacco p.l.c. \n \n \n \n \n Half-Year Report for the six months to 30 June 2025 \n \n \n \n \n On Track for Full-Year Guidance led by the U.S. and Velo's global growth \n \n \n \n \n Half-Year Summary \n - Revenue down 2.2% (due to currency headwinds), up 1.8% at constant FX, driven by a return to growth in the U.S. (led by combustibles and Velo Plus), continued growth in AME, partly offset by APMEA \n - New Categories revenue in line with 2024 at £1,651 million - an increase of 2.4%  at constant FX \n - Smokeless products now 18.2% of Group revenue, up 70 bps vs FY24 \n - Phased roll-out of innovations is expected to drive an accelerated H2 New Category performance  \n - New Categories contribution margin increased by 2.8 ppts to 10.6% at constant FX \n - Improved combustibles financial performance (at constant FX), driven by price/mix \n - Reported profit from operations up 19.1% (with reported operating margin up 7.5 ppts to 42.0%), partly due to the update of the Canadian settlement provision while the prior year was negatively impacted by non-repeating impairment charges \n - Adjusted profit from operations (as adjusted for Canada) up 1.9% at constant FX , adjusted operating margin (as adjusted for Canada and at constant FX)  flat at 43.2% \n - Reported diluted EPS up 1.6% to 203.6p , with adjusted diluted EPS (as adjusted for Canada) up 1.7% at constant FX \n - Increased 2025 share buy-back programme by £200 million to £1.1 billion \n Tadeu Marroco, Chief Executive \n \"Our H1 performance is slightly ahead of expectations. 2025 is a deployment year and we are firmly on track to deliver our FY guidance. \n We added 1.4 million consumers (to 30.5 million) of our smokeless brands. Our smokeless portfolio now accounts for 18.2% of Group revenue, an increase of 70 bps vs FY24. \n I am very pleased with our performance in the U.S. Revenue and profit are both up for the first time since 2022 and, alongside the successful launch of Velo Plus, our combustibles volume and value share performance have returned to growth. AME continued to perform strongly, while our performance in APMEA has been impacted by fiscal and regulatory challenges in Bangladesh and Australia. \n Velo continues to go from strength-to-strength in the fastest growing New Category. Our Quality Growth focus, prioritising investment in the largest profit pools, delivered higher returns, with New Category contribution up 38.6% at £179 million at constant FX, and further improvement expected for the FY. \n Our continued strong cash conversion and the recent partial monetisation of our ITC stake has enhanced our capital flexibility, whilst further financial discipline will drive additional cost savings and smart re-investment. \n I am confident that the investments we have made and actions we are taking, will drive a return to our mid-term algorithm in 2026. Alongside rewarding shareholders through strong cash returns, I am committed to delivering sustainable value for our shareholders.\" \n   \n \n   \n Summary Information \n \n \n \n \n Performance highlights \n \n \n Reported \n \n \n   \n \n \n Adjusted 2 \n \n \n   \n \n \n Adjusted for Canada 3 \n \n \n \n \n For six months to 30 June 2025 \n \n \n Current \n \n \n vs 2024 \n \n \n   \n \n \n Current \n \n \n vs 2024 \n \n \n   \n \n \n vs 2024 \n \n \n \n \n   \n \n \n rates \n \n \n (current) \n \n \n   \n \n \n rates \n \n \n (constant) \n \n \n   \n \n \n  (constant) \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cigarette and HP volume share \n \n \n   \n \n \n -20 bps \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cigarette and HP value share \n \n \n   \n \n \n -10 bps \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Consumers of smokeless products 1 \n \n \n 30.5m \n \n \n +1.4m \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Revenue (£m) \n \n \n £12,069m \n \n \n -2.2% \n \n \n   \n \n \n £12,069m \n \n \n +1.8% \n \n \n   \n \n \n +1.8% \n \n \n \n \n Revenue from New Categories (£m) \n \n \n £1,651m \n \n \n flat \n \n \n   \n \n \n £1,651m \n \n \n +2.4% \n \n \n   \n \n \n +2.4% \n \n \n \n \n Smokeless revenue as % of total revenue (%) 4 \n \n \n 18.2% \n \n \n +70 bps \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Profit from operations (£m) \n \n \n £5,069m \n \n \n +19.1% \n \n \n   \n \n \n £5,394m \n \n \n +0.6% \n \n \n   \n \n \n +1.9% \n \n \n \n \n Adjusted gross profit growth (%) \n \n \n   \n \n \n   \n \n \n   \n \n \n -1.6% \n \n \n +2.1% \n \n \n   \n \n \n +3.0% \n \n \n \n \n Category contribution - New Categories (£m) \n \n \n   \n \n \n   \n \n \n   \n \n \n £174m \n \n \n +38.6% \n \n \n   \n \n \n +38.6% \n \n \n \n \n Category contribution margin - New Categories (%) \n \n \n   \n \n \n   \n \n \n   \n \n \n 10.6% \n \n \n +2.8 ppts \n \n \n   \n \n \n +2.8 ppts \n \n \n \n \n Operating margin (%) \n \n \n 42.0% \n \n \n +7.5 ppts \n \n \n   \n \n \n 44.7% \n \n \n -60 bps \n \n \n   \n \n \n flat \n \n \n \n \n Diluted EPS (pence) \n \n \n 203.6p \n \n \n +1.6% \n \n \n   \n \n \n 162.0p \n \n \n -0.1% \n \n \n   \n \n \n +1.7% \n \n \n \n \n Net cash generated from operating activities (£m) \n \n \n £2,309m \n \n \n -27.0% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Free cash pre-dividend (£m) \n \n \n   \n \n \n   \n \n \n   \n \n \n £1,234m \n \n \n -42.1% \n \n \n   \n \n \n   \n \n \n \n \n Adjusted cash generated from operations (£m) \n \n \n   \n \n \n   \n \n \n   \n \n \n £1,483m \n \n \n -32.3% \n \n \n   \n \n \n   \n \n \n \n \n Cash conversion (%) \n \n \n 45.6% \n \n \n -28.7 ppts \n \n \n   \n \n \n 74.6% \n \n \n -4.5 ppts \n \n \n   \n \n \n   \n \n \n \n \n Borrowings including lease liabilities (£m) \n \n \n £35,208m \n \n \n -12.3% \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Adjusted net debt (£m) \n \n \n   \n \n \n   \n \n \n   \n \n \n £29,749m \n \n \n -5.1% \n \n \n   \n \n \n   \n \n \n \n \n The use of non-GAAP measures, including adjusting items and constant currencies, are further discussed from page 49 , with reconciliation from the most comparable IFRS measure provided. \n Notes: \n 1. Internal estimate. 2. See page 25 for discussion on adjusting items. 3. As adjusted for Canada excludes the performance of the Canadian business (excluding New Categories) given the requirement to use the profits earned to settle the litigation liability - see page 13. There is no adjustment to revenue. 4. Movement in smokeless revenue as a % of total revenue compared to full year 2024. \n   \n On Track for Full-Year 2025 Guidance \n - Global tobacco industry volume expected to be down c.2%. \n - Revenue growth at the top end of 1.0-2.0% guidance range*, with mid-single digit New Category revenue growth*. \n - 1.5-2.5% adjusted profit from operations growth (adj. for Canada)* including an expected c.1.0-1.5% transactional FX headwind. \n - We expect a translational FX headwind of c.4% on adjusted profit from operations (adj. for Canada). \n - Net finance costs expected to be c.£1.8 billion (adj. for Canada)*, subject to interest rate volatility. \n - Gross capital expenditure in 2025 of approximately £650 million. \n - Operating cash flow conversion conversion that exceeds 90%. \n - Continue to deleverage to our 2.0-2.5x adjusted net debt/adjusted EBITDA (adj. for Canada)* corridor by 2026. \n -   Commitment to dividend growth in sterling terms and £1.1 billion share buy-bac k. \n * at constant rates of exchange \n   \n Enquiries \n \n \n \n \n For more information, please contact \n Investor Relations: \n Victoria Buxton +44 (0)20 7845 2012 \n Amy Chamberlain +44 (0)20 7845 1124 \n John Harney+44 (0)20 7845 1263 \n BAT IR Team [email protected] \n \n \n   \n Press Office: \n +44 (0)20 7845 2888 | @BATplc \n BAT Media Team \n \n \n \n \n   \n Webcast and Q&A session: \n BAT will hold a live webcast for investors and analysts at 9.30am (BST) on 31 July 2025, hosted by Tadeu Marroco, Chief Executive, and Soraya Benchikh, Chief Financial Officer. The presentation will be followed by a Q&A session. \n The webcast and presentation slides will be available to view on our website at www.bat.com/latestresults . \n If you prefer to listen via conference call, please use the following dial-in details (participant passcode: BAT - HY25). \n \n \n \n \n \n \n \n Standard International: +44 (0) 20 3147 4669 \n \n \n SA (toll free): 0 800 981 672 \n \n \n \n \n UK (toll free): 0808 238 9062 \n \n \n U.S. (toll free): + 1 877 269 7600 \n \n \n \n \n   \n   \n   \n Video: Chief Executive and CFO's take on Half-Year 2025 Results: To watch highlights of this year's results, please visit: www.bat.com/highlights-video-hy25 \n \n \n \n Group Operating Review \n Total Group volume and revenue \n \n Reported revenue decreased 2.2% to £12,069 million, negatively impacted by a translational foreign exchange headwind of 4.0%. \n On a constant currency basis, revenue grew by 1.8%, as: \n - The U.S. grew revenue (up 3.7%) driven by combustibles price/mix (up 11.4%) and the success of the Velo Plus launch (with revenue of Modern Oral up 384% to £105 million). These more than offset lower combustibles volume (down 7.6%); \n - AME increased by 3.5% led by combustibles price/mix (+6.8%) and the growth of Modern Oral (16.5% higher), which drove New Categories revenue up 1.3%; and \n - APMEA (down 4.8%) faced regulatory and fiscal challenges in Australia and Bangladesh, which more than offset higher revenue in the remainder of the region, notably in Pakistan, Nigeria and Indonesia. \n New Categories continued to grow, with revenue up 2.4% on a constant rates basis driven by Modern Oral (up 40.6%) and HP (up 3.1%). However, Vapour declined 13.0% due to the continued impact of illicit products in the U.S. and Canada and evolving market dynamics (in the UK and France). Our New Categories performance is expected to accelerate in the second half of 2025, driven by the phasing of innovation launches. \n Group cigarette volume share declined 10 bps, with value share down 10 bps despite improvement in the U.S. where the Group  volume share grew 10 bps and value share grew 20 bps. \n Please refer to pages 5 to 7 for discussion on regional performance and pages 8 to 9 for a further discussion on the performance by category. \n Profit from operations, operating margin and category contribution \n \n Profit from operations on a reported basis was up 19.1%, with reported operating margin up 7.5 ppts  to 42.0%. These were driven by lower adjusting items of £325 million (compared to £1,306 million in 2024). This was largely due to a net credit of £575 million as the provision recognised in relation to the Canadian litigation settlement was updated following a change to the forecasted Canadian combustibles industry performance impacting the present value of the future liability described on page 13.  Furthermore, the prior year included impairment charges that did not repeat (as discussed on page 25). \n This was partly offset by a translational foreign exchange headwind of 3.6% or £205 million. \n On an adjusted, constant currency basis and also as adjusted for Canada, profit from operations increased by 1.9% to £5,435 million. Despite inflation on our product costs estimated to be 6.2% (or £166 million), this improvement was largely due to: \n - An increase in New Categories contribution by £50 million to £179 million; and \n - The U.S., which grew by 3.2%, and AME, up 10.4%. These partially offset APMEA which was down 12.3%, with the regional performance largely driven by the respective revenue performance discussed above. \n Adjusted operating margin declined 60 bps to 44.5% at constant rates of exchang e, and flat at 43.2% when adjusted for Canada. \n For a full discussion on the performance by region, please see pages 5 to 7. \n Group Operating Review \n Continued \n \n \n Basic earnings per share were up 1.7% to 204.6p (30 June 2024: 201.1p) partly driven by higher profit from operations and by: \n - A gain of £333 million in respect of the demerger of the hotels division of the Group's Indian associate ITC described on page 28 and offset by: \n - A lower provisional gain arising on the partial sale of the Group's investment in ITC in 2025 (£904 million) compared to \n£1,361 million in 2024 due to a lower number of shares disposed of (2025: 313.0 million shares; 2024: 436.9 million shares) as discussed on page 28; and \n - A credit in 2024, that did not repeat in 2025, of £590 million related to the debt liability management exercise (see page 27). \n Basic earnings per share were also positively impacted by the reduction in the number of shares due to the cumulative effect of the 2024 and  2025 share buy-back programme, with 14,075,158 ordinary shares repurchased and cancelled in the six months ended 30 June 2025. \n Before adjusting items, the impact of translational foreign exchange and including the dilutive effect of employee share schemes, adjusted diluted earnings per share, at constant rates, declined 0.1% to 169.1p (30 June 2024: 169.3p). \n Adjusting for the profit 1 performance of Canada, which will largely be paid to the claimants in the settlement arrangement discussed on page 13 and does not form part of Management's assessment of the underlying performance of the Group, adjusted diluted earnings per share (as adjusted for Canada) and at constant rates of exchange were 1.7% higher at 162.1p (30 June 2024: 159.4p) . \n For a full reconciliation of diluted earnings per share to adjusted diluted earnings per share and adjusted diluted earnings per share (as adjusted for Canada), both at constant rates, see page 56. \n 1. The adjustment in respect of Canada is discussed on page 13, and is based upon the profit after interest and tax from all sources, excluding New Categories, in Canada. \n Analysis of profit from operations and diluted earnings per share by segment \n Prior year data is provided in the table on page 47. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Reported \n \n \n vs \n 2024 \n \n \n Adj Items 1 \n \n \n Adjusted \n \n \n vs \n 2024 \n \n \n Exch. \n \n \n Adjusted at CC 2 \n \n \n vs \n 2024 \n \n \n   \n \n \n vs \n 2024 (Adjusted for Canada 3 at CC 2 ) \n \n \n \n \n £m \n \n \n % \n \n \n £m \n \n \n £m \n \n \n % \n \n \n £m \n \n \n £m \n \n \n  % \n \n \n   \n \n \n % \n \n \n \n \n Profit from Operations \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n U.S. \n \n \n 2,255 \n \n \n +27.1% \n \n \n 808 \n \n \n 3,063 \n \n \n +0.3% \n \n \n 87 \n \n \n 3,150 \n \n \n +3.2% \n \n \n   \n \n \n +3.2% \n \n \n \n \n AME \n \n \n 1,969 \n \n \n +33.6% \n \n \n (495) \n \n \n 1,474 \n \n \n -0.9% \n \n \n 76 \n \n \n 1,550 \n \n \n +4.3% \n \n \n   \n \n \n +10.4% \n \n \n \n \n APMEA \n \n \n 845 \n \n \n -16.3% \n \n \n 12 \n \n \n 857 \n \n \n -16.3% \n \n \n 42 \n \n \n 899 \n \n \n -12.3% \n \n \n   \n \n \n -12.3% \n \n \n \n \n Total Region \n \n \n 5,069 \n \n \n +19.1% \n \n \n 325 \n \n \n 5,394 \n \n \n -3.0% \n \n \n 205 \n \n \n 5,599 \n \n \n +0.6% \n \n \n   \n \n \n +1.9% \n \n \n \n \n Net finance costs \n \n \n (969) \n \n \n +218% \n \n \n 98 \n \n \n (871) \n \n \n +6.1% \n \n \n (14) \n \n \n (885) \n \n \n +7.8% \n \n \n   \n \n \n +4.8% \n \n \n \n \n Associates and joint ventures \n \n \n 1,474 \n \n \n -10.5% \n \n \n (1,242) \n \n \n 232 \n \n \n -17.1% \n \n \n 13 \n \n \n 245 \n \n \n -12.7% \n \n \n   \n \n \n -12.7% \n \n \n \n \n Profit before tax \n \n \n 5,574 \n \n \n -0.5% \n \n \n (819) \n \n \n 4,755 \n \n \n -5.3% \n \n \n 204 \n \n \n 4,959 \n \n \n -1.3% \n \n \n   \n \n \n +0.5% \n \n \n \n \n Taxation \n \n \n (1,009) \n \n \n -3.1% \n \n \n (95) \n \n \n (1,104) \n \n \n -4.6% \n \n \n (47) \n \n \n (1,151) \n \n \n -0.5% \n \n \n   \n \n \n +1.7% \n \n \n \n \n Non-controlling interests \n \n \n (53) \n \n \n -20.9% \n \n \n (3) \n \n \n (56) \n \n \n -16.4% \n \n \n (1) \n \n \n (57) \n \n \n -15.7% \n \n \n   \n \n \n -15.7% \n \n \n \n \n Coupons relating to hybrid bonds net of tax \n \n \n (22) \n \n \n +4.3% \n \n \n - \n \n \n (22) \n \n \n +4.3% \n \n \n - \n \n \n (22) \n \n \n +4.3% \n \n \n   \n \n \n +4.3% \n \n \n \n \n Profit attributable to shareholders \n \n \n 4,490 \n \n \n +0.4% \n \n \n (917) \n \n \n 3,573 \n \n \n -5.5% \n \n \n 156 \n \n \n 3,729 \n \n \n -1.3% \n \n \n   \n \n \n +0.4% \n \n \n \n \n Diluted number of shares (m) \n \n \n 2,205 \n \n \n -1.2% \n \n \n   \n \n \n 2,205 \n \n \n -1.2% \n \n \n   \n \n \n 2,205 \n \n \n -1.2% \n \n \n   \n \n \n -1.2% \n \n \n \n \n Diluted earnings per share (pence) \n \n \n 203.6 \n \n \n +1.6% \n \n \n   \n \n \n 162.0 \n \n \n -4.3% \n \n \n   \n \n \n 169.1 \n \n \n -0.1% \n \n \n   \n \n \n +1.7% \n \n \n \n \n 1.   Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence - see pages 25 to 28. \n 2.   CC: constant currency - measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments . \n 3.   As adjusted for Canada excludes the performance of the Canadian business (excluding New Categories). \n   \n Regional Review \n The performances of the regions are discussed below. The following discussion is based upon the Group's internal reporting structure. \n All references to volume share or value share movement in the following discussion are compared to FY 2024. See page 40 for a discussion on the use of these measures. \n Our products as sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance. \n United States (U.S.): \n - Reported revenue up 1.0%, being an increase of 3.7% at constant rates. \n - Velo category volume share up 6.8 ppts to 13.2%, with Velo Plus driving strong revenue growth in Modern Oral, up 372%. \n - Vuse maintained value share leadership in tracked channels - despite a 14.5% decline in revenue, being a decrease of 12.3% at constant rates of exchange, mainly driven by lower volume due to the continued impact of illicit single-use vapour products. \n - Combustibles revenue up 1.1% (up 3.8% at constant rates) as price/mix more than offset a 7.6% decline in volume which benefited from a lower comparator. Volume share grew 10 bps with value share up 20 bps. \n - Smokeless now represents 19.5% of total revenue. \n   \n Volume/Revenue \n Please see page 51 for a full reconciliation to constant currency metrics, including prior year data. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Volume \n \n \n   \n \n \n Revenue \n \n \n \n \n Reported \n \n \n   \n \n \n Reported \n \n \n \n \n   \n \n \n   \n \n \n Current \n \n \n Exchange \n \n \n Constant \n \n \n \n \n Unit \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n vs 2024 \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n \n \n New Categories \n \n \n   \n \n \n   \n \n \n   \n \n \n 536 \n \n \n +1.3% \n \n \n 14 \n \n \n 550 \n \n \n +3.9% \n \n \n \n \n Vapour (units mn) \n \n \n 123 \n \n \n -13.8% \n \n \n   \n \n \n 434 \n \n \n -14.5% \n \n \n 11 \n \n \n 445 \n \n \n -12.3% \n \n \n \n \n HP (sticks bn) \n \n \n - \n \n \n -% \n \n \n   \n \n \n - \n \n \n -% \n \n \n - \n \n \n - \n \n \n -% \n \n \n \n \n Modern Oral (pouches bn) \n \n \n 1.1 \n \n \n +206% \n \n \n   \n \n \n 102 \n \n \n +372% \n \n \n 3 \n \n \n 105 \n \n \n +384% \n \n \n \n \n Traditional Oral (stick eq bn) \n \n \n 2.5 \n \n \n -9.5% \n \n \n   \n \n \n 521 \n \n \n -2.9% \n \n \n 14 \n \n \n 535 \n \n \n -0.4% \n \n \n \n \n Total Smokeless \n \n \n   \n \n \n   \n \n \n   \n \n \n 1,057 \n \n \n -0.8% \n \n \n 28 \n \n \n 1,085 \n \n \n +1.8% \n \n \n \n \n Total Combustibles (bn sticks) \n \n \n 21 \n \n \n -7.6% \n \n \n   \n \n \n 4,328 \n \n \n +1.1% \n \n \n 114 \n \n \n 4,442 \n \n \n +3.8% \n \n \n \n \n Other \n \n \n   \n \n \n   \n \n \n   \n \n \n 47 \n \n \n +52.5% \n \n \n 1 \n \n \n 48 \n \n \n +57.1% \n \n \n \n \n Total \n \n \n   \n \n \n   \n \n \n   \n \n \n 5,432 \n \n \n +1.0% \n \n \n 143 \n \n \n 5,575 \n \n \n +3.7% \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n See page 44 for a discussion on the preparation of the U.S. financial information, initially based on U.S. GAAP as the primary financial record and converted to IFRS for the purpose of consolidation within the results of the Group. \n   \n Reported revenue increased 1.0%, despite a translational foreign exchange headwind, negatively impacting revenue by 2.7%. \n On a constant currency basis, revenue increased 3.7%. This was driven by the performance in: \n - Combustibles, where revenue increased 3.8%, as price/mix (+11.4%) more than offset a 7.6% reduction in volume. While this was marginally lower than the industry volume decline of 8%, our volume was negatively impacted in 2024 by the phasing of wholesaler inventory. Our volume share was up 10 bps and value share was up 20 bps following the actions taken in 2024 to improve performance; \n - Vapour, where the U.S. is the world's largest Vapour market. The Group maintained leadership in value share (of Vapour closed systems consumables in tracked channels) despite a decline in value share of 20 bps to 49.5%. Revenue was down 12.3%, as price/mix (+1.5%) was offset by a 13.8% decline in consumables volume mainly due to the continued impact of illicit single-use vapes which we estimate to be more than 50% of the total Vapour market; \n - Modern Oral, where revenue increased by 384%, driven by higher volume (up 206%) following the successful national roll-out of Velo Plus, with Velo category volume share almost doubling, up 6.8 ppts to 13.2% 1 ; and \n - Traditional Oral, where revenue declined 0.4%, as price/mix (+9.1%) was more than offset by lower volume (down 9.5%) due to the continued cross-category use of Modern Oral. \n 1.   Please refer to page 40. \n   \n Profit from operations and operating margin \n Please see page 47 for a full reconciliation to constant currency metrics, including prior year data. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Reported \n \n \n   \n \n \n Adj. \n \n \n Exchange \n \n \n Adjusted \n \n \n \n \n Current \n \n \n   \n \n \n   \n \n \n   \n \n \n Constant \n \n \n \n \n £m \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n \n \n Profit from Operations \n \n \n 2,255 \n \n \n +27.1% \n \n \n   \n \n \n 808 \n \n \n 87 \n \n \n 3,150 \n \n \n +3.2% \n \n \n \n \n Operating Margin \n \n \n 41.5% \n \n \n +8.5 ppts \n \n \n   \n \n \n   \n \n \n   \n \n \n 56.5% \n \n \n -30 bps \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n Reported profit from operations increased by 27.1%, as both an impairment charge of £472 million in respect of Camel Snus (see page 25) and income (£132 million) related to Fox River recognised in 2024 did not repeat. Accordingly, reported operating margin was up 8.5 ppts to 41.5%. \n Excluding adjusting items (largely in respect of amortisation and impairment charges and income related to Fox River recognised in 2024) and a translational foreign exchange headwind of £87 million, our performance was positively impacted by the growth in revenue (described above). \n Adjusted profit from operations, at constant rates of exchange was up 3.2% to £3,150 million. \n   \n Regional Review \n Continued \n Americas and Europe (AME): \n - Reported revenue down 2.2%, up 3.5% at constant rates. \n - New Category revenue declined 0.8%, but up 1.3% at constant rates of exchange. \n - Resilient combustibles revenue performance - down 3.5% due to currency, being an increase of 2.8% at constant rates of exchange driven by price/mix. \n - Combustibles volume share down 30 bps and value share down 80 bps. \n - Multi-category region with smokeless now representing 19.9% of revenue. \n Volume/Revenue \n Please see page 51 for a full reconciliation to constant currency metrics, including prior year data. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Volume \n \n \n   \n \n \n Revenue \n \n \n \n \n Reported \n \n \n   \n \n \n Reported \n \n \n \n \n   \n \n \n   \n \n \n Current \n \n \n Exchange \n \n \n Constant \n \n \n \n \n Unit \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n vs 2024 \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n \n \n New Categories \n \n \n   \n \n \n   \n \n \n   \n \n \n 832 \n \n \n -0.8% \n \n \n 17 \n \n \n 849 \n \n \n +1.3% \n \n \n \n \n Vapour (units mn) \n \n \n 112 \n \n \n -7.3% \n \n \n   \n \n \n 267 \n \n \n -11.4% \n \n \n 7 \n \n \n 274 \n \n \n -9.1% \n \n \n \n \n HP (sticks bn) \n \n \n 3.9 \n \n \n -8.3% \n \n \n   \n \n \n 218 \n \n \n -7.4% \n \n \n 5 \n \n \n 223 \n \n \n -4.8% \n \n \n \n \n Modern Oral (pouches bn) \n \n \n 3.3 \n \n \n +24.9% \n \n \n   \n \n \n 347 \n \n \n +14.7% \n \n \n 5 \n \n \n 352 \n \n \n +16.5% \n \n \n \n \n Traditional Oral (stick eq bn) \n \n \n 0.3 \n \n \n -16.8% \n \n \n   \n \n \n 21 \n \n \n +11.4% \n \n \n (1) \n \n \n 20 \n \n \n +10.1% \n \n \n \n \n Total Smokeless \n \n \n   \n \n \n   \n \n \n   \n \n \n 853 \n \n \n -0.6% \n \n \n 16 \n \n \n 869 \n \n \n +1.5% \n \n \n \n \n Total Combustibles (bn sticks) \n \n \n 115 \n \n \n -4.0% \n \n \n   \n \n \n 3,216 \n \n \n -3.5% \n \n \n 211 \n \n \n 3,427 \n \n \n +2.8% \n \n \n \n \n Other \n \n \n   \n \n \n   \n \n \n   \n \n \n 212 \n \n \n +15.2% \n \n \n 22 \n \n \n 234 \n \n \n +26.4% \n \n \n \n \n Total \n \n \n   \n \n \n   \n \n \n   \n \n \n 4,281 \n \n \n -2.2% \n \n \n 249 \n \n \n 4,530 \n \n \n +3.5% \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n Reported revenue was down 2.2% due to a translational foreign exchange headwind of 5.7%. \n On a constant currency basis, which we believe reflects the operational performance, revenue increased by 3.5% to £4,530 million, driven by: \n - Higher revenue from combustibles (up 2.8%), largely driven by higher volume and pricing in both Brazil and Türkiye. These factors combined with robust pricing in Romania and Poland to more than offset a reduction in revenue in Canada; and \n - Modern Oral, where we are category leaders, with volume up 24.9%. Revenue grew 16.5%, while volume share of the Modern Oral category was down 30 bps. \n The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia and markets that are more recent adopters of Modern Oral, such as the UK, Austria and Switzerland.  \n These more than offset: \n - Lower revenue from Vapour (down 9.1%), largely driven by lower revenue in Canada (due to the continued  lack of enforcement against illegal flavoured vapour products) and evolving market dynamics (in the UK and France). Our value share leadership was up 30 bps with gains in Europe partly offset by value share loss in Canada; and \n - HP (down 4.8%), as higher revenue in Poland and Portugal was more than offset by declines in the Czech Republic, Germany and Romania partly due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo. \n   \n Profit from operations and operating margin \n Please see page 47 for a full reconciliation to constant currency and as adjusted for Canada metrics, including prior year data. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Reported \n \n \n   \n \n \n Adj. \n \n \n Exchange \n \n \n Adjusted \n \n \n   \n \n \n Adjusted for Canada 1 \n \n \n \n \n Current \n \n \n   \n \n \n   \n \n \n   \n \n \n Constant \n \n \n   \n \n \n Constant \n \n \n \n \n £m \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n   \n \n \n vs 2024 \n \n \n \n \n Profit from Operations \n \n \n 1,969 \n \n \n +33.6% \n \n \n   \n \n \n -495 \n \n \n 76 \n \n \n 1,550 \n \n \n +4.3% \n \n \n   \n \n \n +10.4% \n \n \n \n \n Operating Margin \n \n \n 46.0% \n \n \n +12.3 ppts \n \n \n   \n \n \n   \n \n \n   \n \n \n 34.2% \n \n \n +20 bps \n \n \n   \n \n \n +1.9 ppts \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n 1.   Adjusted for Canada excludes the performance of the Canadian business (excluding New Categories) \n Reported profit from operations increased by 33.6% mainly due to a  net credit of £575 million as the provision recognised in relation to the Canadian litigation settlement was updated following a change to the forecasted Canadian combustibles industry performance impacting the present value of the future liability described on page 13. H1 2025 was also impacted by a translational foreign exchange headwind. \n Excluding the impact of foreign exchange, adjusting items and also adjusting for the performance of Canada, adjusted profit from operations was up 10.4% to £1,386 million, driven by an improved financial performance in: \n - Brazil, due to combustibles with higher volume and pricing; \n - Romania, due to pricing in combustibles; \n - Türkiye, due to the revenue performance in combustibles; and \n - An improved financial performance across our New Categories, notably in Modern Oral (driven by Sweden, the UK, Switzerland and Norway), and a reduction in losses in HP (in Germany, Switzerland and Poland) driven by resource allocation. \n   \n Regional Review \n Continued \n Asia-Pacific, Middle East and Africa (APMEA): \n - Reported revenue declined 8.9%, being a decrease of 4.8% at constant rates. \n - New Category revenue up 0.4%, or 2.5% at constant rates of exchange, driven by HP in Japan. \n - Headwinds to volume and financial performance due to regulatory and fiscal challenges in Australia and Bangladesh. \n - Combustibles value share down 20 bps with volume share down 10 bps. . \n - Smokeless now represents 12.0% of total revenue. \n   \n Volume/Revenue \n Please see page 51 for a full reconciliation to constant currency metrics, including prior year data. \n \n \n \n \n For six months to 30 June 2025 \n \n \n Volume \n \n \n   \n \n \n Revenue \n \n \n \n \n Reported \n \n \n   \n \n \n Reported \n \n \n \n \n   \n \n \n   \n \n \n Current \n \n \n Exchange \n \n \n Constant \n \n \n \n \n Unit \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n vs 2024 \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n \n \n New Categories \n \n \n   \n \n \n   \n \n \n   \n \n \n 283 \n \n \n +0.4% \n \n \n 7 \n \n \n 290 \n \n \n +2.5% \n \n \n \n \n Vapour (units mn) \n \n \n 18 \n \n \n -33.4% \n \n \n   \n \n \n 36 \n \n \n -40.5% \n \n \n 1 \n \n \n 37 \n \n \n -38.4% \n \n \n \n \n HP (sticks bn) \n \n \n 6.2 \n \n \n +8.7% \n \n \n   \n \n \n 226 \n \n \n +10.1% \n \n \n 5 \n \n \n 231 \n \n \n +12.3% \n \n \n \n \n Modern Oral (pouches bn) \n \n \n 0.6 \n \n \n +15.1% \n \n \n   \n \n \n 21 \n \n \n +29.7% \n \n \n 1 \n \n \n 22 \n \n \n +32.7% \n \n \n \n \n Traditional Oral (stick eq bn) \n \n \n - \n \n \n -% \n \n \n   \n \n \n - \n \n \n -% \n \n \n - \n \n \n - \n \n \n -% \n \n \n \n \n Total Smokeless \n \n \n   \n \n \n   \n \n \n   \n \n \n 283 \n \n \n +0.4% \n \n \n 7 \n \n \n 290 \n \n \n +2.5% \n \n \n \n \n Total Combustibles (bn sticks) \n \n \n 98 \n \n \n -14.1% \n \n \n   \n \n \n 1,971 \n \n \n -12.0% \n \n \n 93 \n \n \n 2,064 \n \n \n -7.9% \n \n \n \n \n Other \n \n \n   \n \n \n   \n \n \n   \n \n \n 102 \n \n \n +63.1% \n \n \n 6 \n \n \n 108 \n \n \n +73.0% \n \n \n \n \n Total \n \n \n   \n \n \n   \n \n \n   \n \n \n 2,356 \n \n \n -8.9% \n \n \n 106 \n \n \n 2,462 \n \n \n -4.8% \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n Reported revenue declined 8.9% largely due to the regulatory and fiscal challenges in Australia and Bangladesh, which more than offset higher revenue in the remainder of the region, notably in Pakistan, Nigeria and Indonesia. Translational foreign exchange was a further headwind of 4.1%. \n On a constant currency basis, which we believe reflects the operational performance, revenue was down 4.8%. \n However, New Categories increased by 2.5% at constant rates, driven by: \n - HP, largely driven by Japan and Kazakhstan; and \n - Modern Oral, fuelled by robust growth from Global Travel Retail and a performance that further demonstrates Modern Oral's potential in Emerging Markets. \n This was offset by lower revenue in Vapour, as volume declined 33.4%, leading to a 40.5% reduction in revenue (being down 38.4% at constant rates), largely driven by the Group exiting the category in a number of markets (including Malaysia, Japan and Saudi Arabia) and a change in competitive dynamics in other markets (such as South Africa and New Zealand). \n   \n Profit from operations and operating margin \n Please see page 47 for a full reconciliation to constant currency metrics, including prior year data. \n   \n \n \n \n \n For six months to 30 June 2025 \n \n \n Reported \n \n \n   \n \n \n Adj. \n \n \n Exchange \n \n \n Adjusted \n \n \n \n \n Current \n \n \n   \n \n \n   \n \n \n   \n \n \n Constant \n \n \n \n \n £m \n \n \n vs 2024 \n \n \n   \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n vs 2024 \n \n \n \n \n Profit from Operations \n \n \n 845 \n \n \n -16.3% \n \n \n   \n \n \n 12 \n \n \n 42 \n \n \n 899 \n \n \n -12.3% \n \n \n \n \n Operating Margin \n \n \n 35.9% \n \n \n -3.2 ppts \n \n \n   \n \n \n   \n \n \n   \n \n \n 36.5% \n \n \n -3.1 ppts  \n \n \n \n \n Constant currency measures are calculated based upon a re-translation, at the prior year's exchange rates, of the current year's results of the Group and, where applicable, its segments. \n Profit from operations was 16.3% lower, including a translational foreign exchange headwind of 4.0%. \n Excluding adjusting items and translational foreign exchange, adjusted profit from operations at constant rates was down 12.3% to £899 million driven by: \n - Australia due to continued increases in the illicit segment which we estimate now accounts for more than 50% of the combustibles industry volume, with the duty paid combustibles industry volume down more than 30% in 2025; and \n - Bangladesh, driven by the increase in excise and minimum price in January 2025, necessitating an increase in consumer prices by 20-30%, which has resulted in a reduction in the duty paid combustibles industry volume by an estimated 27%. \n However, these were partly offset by an increase in Pakistan (led by the growth of Modern Oral and pricing in combustibles), Nigeria (driven by higher combustibles volume and improved combustibles pricing) and Indonesia where combustibles volume was up. \n   \n Category Performance Review \n Vapour \n - Continued value share* leadership (in tracked channels) despite flat performance . \n - Vapour revenue down 15.3% or 13.0% (at constant rates), with volume down 12.9%, impacted by illicit products in the U.S. and Canada and evolving market dynamics (in the UK and France).  \n - In Europe, Vapour value share up 30 bps, with industry rechargeable closed systems back in growth . \n - Vuse Ultra, our new premium product, continues to be rolled out in H2 2025, with expected acceleration in vapour revenue. \n   \n Group Vapour performance was negatively impacted by: \n - The U.S., the world's largest Vapour market, where Group volume was down 13.8% mainly due to the continued proliferation of illicit single-use vapes and inventory movements.  Accordingly, revenue was down 14.5% (or 12.3% on a constant currency basis). The Group maintained leadership in value share (of Vapour closed systems consumables in tracked channels) despite a decline in value share of 20 bps to 49.5%. \n - AME, where revenue declined 11.4% (or 9.1% on a constant currency basis), largely driven by lower revenue in Canada (due to the continued  lack of enforcement against illegal flavoured vapour products) and evolving market dynamics (in the UK and France) . Our value share leadership was up 30 bps with gains in Europe partly offset by value share loss in Canada; and \n - APMEA, where volume declined 33.4%, leading to a 40.5% reduction in revenue (being down 38.4% at constant rates), largely driven by the Group exiting the category in a number of markets (including Malaysia, Japan and Saudi Arabia) and a change in competitive dynamics in other markets (such as South Africa and New Zealand). \n Our new premium innovation, Vuse Ultra, offers consumers a highly differentiated, connected and customisable experience. We are encouraged by the early performance in Canada and will continue the roll-out in a targeted way through H2 2025. \n * Based on Vuse estimated value share in measured retail for Vapour (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top global markets** . \n **Top Vapour markets are defined as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024. \n   \n   \n Heated Products (HP) \n - Revenue up 0.8%, or 3.1% at constant rates, driven by Quality Growth focus in largest profit pools. \n -  Volume share ***, down 70 bps, impacted by competitive pressure in Japan and phase-out of legacy super-slims. \n - AME volume share down 10 bps with growth in Poland and the Czech Republic, stable share in Italy more than offset by Germany and Romania. \n - Momentum building with successful pilot of glo Hilo ahead of phased roll-out in key markets in H2 2025, with expected acceleration in revenue. \n   \n In APMEA, volume was up 8.7%, with revenue up 10.1%, or 12.3% at constant rates, largely driven by Japan and Kazakhstan. \n In AME, volume was down 8.3%, with revenue down 7.4% (being a decline of 4.8% at constant rates), as higher revenue in Poland and Portugal was more than offset by declines in the Czech Republic, Germany and Romania partly due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo. \n Our new premium connected device, glo Hilo, offers superior heating technology and an integrated display combined with a new consumables range, Virto and tobacco-free Rivo. We will continue the roll-out through H2 2025 in a targeted way focused on the largest profit pools. \n ***Volume share is based upon the Top HP markets which are defined as the Top markets by industry revenue. Top markets are Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024. \n   \n   \n Modern Oral \n - Revenue up 38.1%, or 40.6% at constant rates, with volume growth of 42.2%. \n - Growth in volume share* up 3.3 ppts in Total Oral and up 4.4 ppts in Modern Oral. \n - AME volume share leadership maintained, with strong financial performances in Scandinavia and the UK. \n - Triple-digit volume and revenue growth in the U.S. following the national roll-out of Velo Plus. \n   \n In AME, we are category leaders, with volume up 24.9%. Revenue grew 14.7% (or 16.5% at constant rates) while volume share of the Modern Oral category was down 30 bps. \n The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia and markets that are more recent adopters of Modern Oral, such as the UK, Austria and Switzerland. \n In the U.S., revenue increased by 372% (or 384% at constant rates), driven by higher volume (up 206%) following the successful national roll-out of Velo Plus, with Velo category volume share almost doubling, up 6.8 ppts to 13.2%. \n In APMEA, our volume grew 15.1% and our revenue grew 29.7% (or 32.7% at constant rates), fuelled by robust growth from Global Travel Retail and a performance that further demonstrates Modern Oral's potential in Emerging Markets.  \n *Volume share is based uoon the Top Oral and Modern Oral markets which are defined as the Top markets by industry revenue, being the U.S., Sweden,  Denmark, Norway, Switzerland, UK and Poland, accounting for c.90% of total industry Modern Oral revenue in 2024 . \n   \n Category Performance Review \n Continued \n   \n Combustibles \n - Volume and value share down 10 bps* , growth in the U.S. more than offset by AME and APMEA. \n - Excluding currency, positive revenue and category contribution growth driven by the U.S. and AME. \n - Return to growth in the U.S., with revenue up 1.1% (or 3.8% at constant rates) as price/mix more than offset volume decline . \n - Resilient AME performance with revenue down 3.5%, or up 2.8% at constant rates, driven by Brazil, Türkiye and Romania. \n - APMEA revenue declined 12.0%, or 7.9% at constant rates, impacted by Australia and Bangladesh with volume down 14.1%. \n   \n Group cigarette volume was down 8.7% to 229 billion sticks as volume growth in Brazil and Türkiye was more than offset by lower volume in a number of markets, mainly driven by Bangladesh, the U.S. and Poland and market exits (including Mali). \n Revenue from combustibles declined 3.5% to £9,515 million. Our performance was negatively impacted by a translational foreign exchange headwind, with revenue up 0.8% at constant rates as continued robust price/mix of 9.6% was partly offset by the lower volume (down 8.8%). \n Excluding the impact of translational foreign exchange: \n - In the U.S., revenue increased 3.8%, as price/mix (+11.4%) more than offset a 7.6% reduction in volume. While this was marginally lower than the industry volume decline of 8.3%, our volume was negatively impacted in 2024 by the phasing of wholesaler inventory. Our volume share was up 10 bps and value share was up 20 bps following the actions taken in 2024 to improve performance; \n - In AME, higher revenue (up 2.8%) was largely driven by higher volume and pricing in both Brazil and Türkiye. These factors combined with robust pricing in Romania and Poland to more than offset a reduction in revenue in Canada; and \n - In APMEA, revenue declined 7.9% due to fiscal and regulatory headwinds in Australia and Bangladesh, which more than offset higher revenue in the remainder of the region, notably in Pakistan, Nigeria and Indonesia. \n *Volume and value share are based upon the Top cigarette markets which are defined as the Top cigarette markets by industry revenue, being the U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.60% of total industry cigarettes revenue in 2024 . \n   \n Traditional Oral \n Group volume declined 10.4% to 2.8 billion stick equivalents. Total revenue was £542 million, down 2.4% but flat at constant rates. \n In the U.S., which accounts for 96% of the Group's revenue from the category, revenue declined 0.4% at constant rates, as price/mix (+9.1%) was more than offset by lower volume (down 9.5%) due to the continued cross-category use of Modern Oral. \n Value share in Traditional Oral decreased 40 bps, with volume share down 20 bps. \n   \n Beyond Nicotine \n Btomorrow Ventures has completed 29 investments since its launch in 2020 and continues to invest in innovative, consumer-led brands, new science and technologies. \n The Group has continued its  exploration in the Wellbeing and Stimulation category with Ryde: functional shots now selling in the U.S. on Amazon and in Texas retailers in addition to Australia and Canada. \n   \n Other Financial Information \n Cash flow \n We continue to make good progress on de-leveraging our balance sheet and we expect to be within our narrowed leverage target range of 2.0-2.5x adjusted net debt/adjusted EBITDA (as adjusted for Canada) by the end of 2026, driven by continued strong cash generation. \n Cash flow is typically weighted to the second half of the year.   We are on track to meet or exceed our operating cash conversion guidance of 90%. \n We continue to expect the Group to generate c.£50 billion of free cash flow before dividends between 2024 and 2030 (inclusive). To date we have generated £9.1 billion. \n Our active capital allocation framework considers the continued investment in our transformation, the macro-environment, and potential future litigation and regulatory outcomes. \n We understand the importance of cash returns to shareholders, and remain committed to our progressive dividend based upon 65% of long-term sustainable earnings. \n Subsequent to recognising the dilutive effect of share issuances under the Company's Employee Share Option Scheme, which reduced BAT's shareholding from 25.45% (31 December 2024) to 25.43%, in May 2025, we monetised a further portion of our ITC stake (further lowering our holding from 25.43% to 22.93% at 30 June 2025), realising £1.1 billion and enabling an increase in our sustainable share buy-back for 2025 from £0.9 billion to £1.1 billion. \n \n \n \n \n   \n \n \n For six months to 30 June \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n Change \n \n \n \n \n £m \n \n \n £m \n \n \n % \n \n \n \n \n Net cash generated from operating activities \n \n \n 2,309 \n \n \n 3,165 \n \n \n -27.0% \n \n \n \n \n Operating cash flow conversion \n \n \n 75% \n \n \n 78% \n \n \n   \n \n \n \n \n Free cash flow - before payment of dividends \n \n \n 1,234 \n \n \n 2,129 \n \n \n -42.1% \n \n \n \n \n Free cash flow - after payment of dividends \n \n \n (1,375) \n \n \n (476) \n \n \n 189% \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n   \n \n \n As at 30 June \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n Change \n \n \n \n \n £m \n \n \n £m \n \n \n % \n \n \n \n \n Borrowings (including lease liabilities) \n \n \n 35,208 \n \n \n 40,158 \n \n \n -12.3% \n \n \n \n \n Adjusted net debt \n \n \n 29,749 \n \n \n 32,973 \n \n \n -9.8% \n \n \n \n \n In the Group's cash flow statement, prepared in accordance with IFRS and presented on page 22, net cash generated from operating activities declined by 27.0% to £2,309 million. This was largely due to the previously announced: \n - deferral of £700 million (US$895 million) of tax payments in the U.S. from 2024 to 2025, partly offset by a deferral in 2025 from the first half of the year to the second half (£209 million / US$271 million); and \n - payment related to the Franked Investment Income Group Litigation Order (FII GLO) of £368 million. The Group will make a further payment in H2 2025 of £111 million, followed by payments of £222 million in 2026 and £43 million in 2027 (see page 36). \n These were partly offset by payments in the first half of 2024 in respect of the DOJ and OFAC (£267 million) that did not repeat. \n Operating cash conversion and free cash flow (before and after dividends paid to shareholders) \n The Group's operating cash conversion rate (based upon adjusted profit from operations and defined on page 58) was largely in line with the prior period, at 75% (30 June 2024: 78%). \n We expect our operating cash conversion in 2025 to meet or exceed our target of at least 90%, demonstrating the ongoing strength of the Group in turning operating performance into cash. \n Free cash flow (before the payment of dividends), as defined on page 58, was £1,234 million for the six months ended 30 June 2025 (30 June 2024: £2,129 million), a decrease of 42.1%. This was driven by the decline in net cash generated from operations discussed above, an increase in net capital expenditure (30 June 2025: £119 million; 30 June 2024: £96 million) and higher net interest paid (30 June 2025: £889 million; 30 June 2024: £877 million). \n The Group expects its gross capital expenditure in 2025 to be approximately £650 million mainly related to the ongoing investment in the Group's operational infrastructure, including the expansion of our New Categories portfolio and enhancements to our Modern Oral capacity. \n After paying dividends of £2,609 million (30 June 2024: £2,605 million), free cash flow (after dividends paid to shareholders), as defined on page 58, was an outflow of £1,375 million for the six months ended 30 June 2025 (30 June 2024: £476 million outflow). \n For a full reconciliation of net cash generated from operating activities to free cash flow before and after dividends, see page 58. \n   \n Other Financial Information \n Continued \n Borrowings and net debt \n Borrowings (which includes lease liabilities) were £35,208 million at 30 June 2025, a decrease of 12.3% compared to £40,158 million at 30 June 2024 (31 December 2024 : £36,950 million). \n The Group remains confident of its ability to access the debt capital markets successfully and reviews its options on a continuing basis. \n The Group's average centrally managed debt maturity was 10.0 years at 30 June 2025 (30 June 2024: 9.2 years; 31 December 2024: 9.5 years), and the highest proportion of centrally managed debt maturing in a single rolling 12-month period was 15.3% (30 June 2024: 15.6%; 31 December 2024: 14.8%). \n The Group defines net debt as borrowings (including related derivatives and lease liabilities), less cash and cash equivalents (including restricted cash) and current investments held at fair value. Closing net debt was £30,342 million at 30 June 2025 (30 June 2024: £33,658 million; 31 December 2024: £31,253 million). \n A reconciliation of borrowings to net debt is provided below. \n \n \n \n \n   \n \n \n As at 30 June \n \n \n   \n \n \n As at 31 December \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n Change \n \n \n   \n \n \n 2024 \n \n \n \n \n £m \n \n \n £m \n \n \n % \n \n \n   \n \n \n £m \n \n \n \n \n Borrowings (including lease liabilities) \n \n \n (35,208) \n \n \n (40,158) \n \n \n -12.3% \n \n \n   \n \n \n (36,950) \n \n \n \n \n Derivatives in respect of net debt \n \n \n (27) \n \n \n (130) \n \n \n -79.2% \n \n \n   \n \n \n (113) \n \n \n \n \n Cash and cash equivalents \n \n \n 4,404 \n \n \n 5,934 \n \n \n -25.8% \n \n \n   \n \n \n 5,297 \n \n \n \n \n Current investments held at fair value \n \n \n 489 \n \n \n 696 \n \n \n -29.7% \n \n \n   \n \n \n 513 \n \n \n \n \n Net debt \n \n \n (30,342) \n \n \n (33,658) \n \n \n -9.9% \n \n \n   \n \n \n (31,253) \n \n \n \n \n Maturity profile of net debt: \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Net debt due within one year \n \n \n 1,573 \n \n \n (686) \n \n \n n/m \n \n \n   \n \n \n 1,545 \n \n \n \n \n Net debt due beyond one year \n \n \n (31,915) \n \n \n (32,972) \n \n \n -3.2% \n \n \n   \n \n \n (32,798) \n \n \n \n \n Net debt \n \n \n (30,342) \n \n \n (33,658) \n \n \n -9.9% \n \n \n   \n \n \n (31,253) \n \n \n \n \n n/m not meaningful \n The movement in net debt includes the free cash outflow, after payment of dividends to shareholders, of £1,375 million (30 June 2024: £476 million outflow), as described on page 59. Also impacting the carrying value of net debt are: \n - Cash payments related to share schemes and investing activities of £47 million (30 June 2024: £103 million); \n - £1,052 million (30 June 2024: £1,577 million) net proceeds from the partial monetisation of our investment in ITC; \n - The purchase of £450 million (30 June 2024: £366 million) of own shares under the Group's 2025 share buy-back programme; \n - Other non-cash movements of £120 million (30 June 2024: £619 million) with the prior year impacted by the repurchase of series of bonds in May 2024 as part of the Group's debt liability management exercise; and \n - Foreign exchange impacts related to the revaluation of foreign currency denominated net debt balances being a net tailwind of £1,611 million (30 June 2024: £269 million headwind). \n Investments held at fair value through profit and loss above include restricted amounts of £427 million (31 December 2024: £437 million) due to investments held by subsidiaries in CCAA protection, as well as £17 million (31 December 2024: £60 million) subject to potential exchange control restrictions. \n Cash and cash equivalents include restricted amounts of £2,047 million (31 December 2024: £2,072 million) due to subsidiaries in CCAA protection, as well as £255 million (31 December 2024: £339 million) principally due to exchange control re strictions. \n   \n Adjusted net debt \n The Group also adjusts net debt for items held-for-sale and for the purchase price allocation adjustment to the debt, included within borrowings, acquired as part of the acquisition of Reynolds American Inc. This is an accounting adjustment and does not reflect the enduring repayment of the instrument. The Group Management Board believes that this additional measure, which is used internally to assess the Group's financial capacity, is useful to the users of the financial statements in helping them to see how the Group's financial capacity has changed over the year. The adjusted net debt position is provided below: \n \n \n \n \n   \n \n \n As at 30 June \n \n \n   \n \n \n As at 31 December \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n Change \n \n \n   \n \n \n 2024 \n \n \n \n \n £m \n \n \n £m \n \n \n % \n \n \n   \n \n \n £m \n \n \n \n \n Net debt \n \n \n (30,342) \n \n \n (33,658) \n \n \n -9.9% \n \n \n   \n \n \n (31,253) \n \n \n \n \n Purchase price allocation (PPA) adjustment to acquired debt \n \n \n 593 \n \n \n 685 \n \n \n -13.5% \n \n \n   \n \n \n 670 \n \n \n \n \n Adjusted net debt \n \n \n (29,749) \n \n \n (32,973) \n \n \n -9.8% \n \n \n   \n \n \n (30,583) \n \n \n \n \n Exchange \n \n \n (1,535) \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Adjusted net debt translated at 2024 exchange rates \n \n \n (31,284) \n \n \n (32,973) \n \n \n -5.1% \n \n \n   \n \n \n (30,583) \n \n \n \n \n   \n Other Financial Information \n Continued \n Foreign currencies \n The principal exchange rates used to convert the results of the Group's foreign operations to pounds sterling for the purposes of inclusion and consolidation within the Group's financial statements are indicated in the table below. Where the Group has provided results \"at constant rates of exchange\" this refers to the translation of the results from the foreign operations at rates of exchange prevailing in the prior period - thereby eliminating the potentially distorting impact of the movement in foreign exchange on the reported results. \n The principal exchange rates used were as follows: \n   \n \n \n \n \n \n \n \n Average for the period ended \n \n \n   \n \n \n As at \n \n \n \n \n 30 June \n \n \n   \n \n \n 31 December \n \n \n   \n \n \n 30 June \n \n \n   \n \n \n 31 December \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n   \n \n \n 2024 \n \n \n   \n \n \n 2025 \n \n \n 2024 \n \n \n   \n \n \n 2024 \n \n \n \n \n Australian dollar \n \n \n 2.045 \n \n \n 1.922 \n \n \n   \n \n \n 1.937 \n \n \n   \n \n \n 2.091 \n \n \n 1.893 \n \n \n   \n \n \n 2.023 \n \n \n \n \n Bangladeshi taka \n \n \n 158.273 \n \n \n 141.684 \n \n \n   \n \n \n 147.803 \n \n \n   \n \n \n 168.176 \n \n \n 149.132 \n \n \n   \n \n \n 149.662 \n \n \n \n \n Brazilian real \n \n \n 7.468 \n \n \n 6.431 \n \n \n   \n \n \n 6.893 \n \n \n   \n \n \n 7.479 \n \n \n 7.021 \n \n \n   \n \n \n 7.737 \n \n \n \n \n Canadian dollar \n \n \n 1.828 \n \n \n 1.718 \n \n \n   \n \n \n 1.751 \n \n \n   \n \n \n 1.870 \n \n \n 1.730 \n \n \n   \n \n \n 1.801 \n \n \n \n \n Chilean peso \n \n \n 1,238.902 \n \n \n 1,190.267 \n \n \n   \n \n \n 1,206.394 \n \n \n   \n \n \n 1,279.119 \n \n \n 1,193.216 \n \n \n   \n \n \n 1,245.543 \n \n \n \n \n Euro \n \n \n 1.187 \n \n \n 1.170 \n \n \n   \n \n \n 1.181 \n \n \n   \n \n \n 1.167 \n \n \n 1.179 \n \n \n   \n \n \n 1.209 \n \n \n \n \n Indian rupee \n \n \n 111.763 \n \n \n 105.275 \n \n \n   \n \n \n 106.952 \n \n \n   \n \n \n 117.521 \n \n \n 105.410 \n \n \n   \n \n \n 107.223 \n \n \n \n \n Japanese yen \n \n \n 192.489 \n \n \n 192.515 \n \n \n   \n \n \n 193.583 \n \n \n   \n \n \n 197.940 \n \n \n 203.343 \n \n \n   \n \n \n 196.827 \n \n \n \n \n Romanian leu \n \n \n 5.939 \n \n \n 5.821 \n \n \n   \n \n \n 5.877 \n \n \n   \n \n \n 5.929 \n \n \n 5.870 \n \n \n   \n \n \n 6.018 \n \n \n \n \n South African rand \n \n \n 23.859 \n \n \n 23.692 \n \n \n   \n \n \n 23.423 \n \n \n   \n \n \n 24.353 \n \n \n 23.082 \n \n \n   \n \n \n 23.633 \n \n \n \n \n Swiss franc \n \n \n 1.118 \n \n \n 1.125 \n \n \n   \n \n \n 1.125 \n \n \n   \n \n \n 1.091 \n \n \n 1.136 \n \n \n   \n \n \n 1.135 \n \n \n \n \n US dollar \n \n \n 1.298 \n \n \n 1.265 \n \n \n   \n \n \n 1.278 \n \n \n   \n \n \n 1.370 \n \n \n 1.264 \n \n \n   \n \n \n 1.252 \n \n \n \n \n   \n Other Information \n   \n Risks and uncertainties \n The Board carried out a robust assessment of the Principal Risks and uncertainties facing the Group for the period, including those that would threaten its business model, future performance, solvency, liquidity and viability. The Board also maintained close oversight of the Group's response to critical external uncertainties, recognising current macro-economic and geopolitical challenges. \n All Group risks are reviewed biannually by the Audit Committee and annually by the Board. During the period, the risk related to \"Litigation\" was renamed \"Litigation and external investigations\" and the risk related to \"Circular economy\" was renamed \"Circularity\", reflecting the nature of the risk. There were no changes to the underlying risks. \n Sustainability is core to the Group's long-term business strategy and sustainability risk factors are embedded across the Group's risks in accordance with the Group's Risk Management Framework. \n The Principal Risks facing the Group are summarised under the headings of: \n - Competition from illicit trade; \n - Geopolitical tensions; \n - Tobacco, New Categories and other regulation interrupts the growth strategy; \n - Supply chain disruption; \n - Litigation and external investigations; \n - Significant increases or structural changes in tobacco, nicotine and New Categories related taxes; \n - Inability to develop, commercialise and deliver the New Categories strategy; \n - Disputed taxes, interest and penalties; \n - Injury, illness or death in the workplace; \n - Solvency and liquidity; \n - Foreign exchange rate exposures; \n - Climate change; \n - Circularity; and \n - Cyber security. \n A summary of all the risk factors (including the Principal Risks) which are monitored by the Board through the Group's risk register are set out on pages 414 to 435 of the Group's Annual Report and Accounts and Form 20-F for the year ended 31 December 2024. All the Group's risks should be read in the context of the forward-looking statements on page 44 of this Half-Year Report. \n   \n Other Information \n Continued \n Update on Quebec class action, CCAA and the Proposed Plans in Canada \n As previously announced, on 17 October 2024, the court-appointed Mediator's and Monitor's plan of compromise and arrangement was filed in the Ontario Superior Court of Justice. Substantially similar proposed plans were also filed for Rothmans, Benson & Hedges Inc. (RBH, a subsidiary of Philip Morris International Inc.) and JTI-Macdonald Corp. (JTIM, a subsidiary of Japan Tobacco International) (collectively, the Proposed Plans). \n Under the Proposed Plans, ITCAN, RBH and JTIM (the Companies) would pay an aggregate settlement amount of CAD$32.5 billion (approximately £17.4 billion). This amount would be funded by: \n - an upfront payment equal to all the Companies' cash and cash equivalents on hand (including investments held at fair value) plus certain court deposits (subject to an aggregate industry withholding of CAD$750 million (approximately £401 million)) plus 85% of any cash tax refunds that may be received by the Companies on account of the upfront payments; and \n - annual payments based on a percentage (initially 85%, reducing over time) of each of the Companies' net income after taxes, based on amounts generated from all sources, excluding New Categories, until the aggregate settlement amount is paid. \n On 31 October 2024, the court granted certain orders pursuant to which the Proposed Plans were accepted for filing. On 12 December 2024, the Proposed Plans were approved by the requisite majorities of the creditors. On 6 March 2025, the Court sanctioned an amended version of the Proposed Plans (hereinafter referred to as the Approved Plans), wherein the aggregate industry withholding of CAD$750 million was allocated to RBH. In this sanction order, the Court has also extended the stays of litigation up to the implementation date of the Approved Plans. \n The Approved Plans resolve all Canadian tobacco litigation and provide a full and comprehensive release to ITCAN, BAT p.l.c. and all related companies for all past, present and future tobacco claims in Canada. \n In line with IFRS 10 Consolidated Financial Statements , ITCAN is consolidated in the Group's results. \n Under IAS 37 Provisions, Contingent Liabilities and Contingent Assets , when there is an expected future economic outflow, arising from a past event, the value of which can be reasonably estimated, a provision should be recognised.  A provision of £6.2 billion was recognised in 2024. \n It is expected that approximately £2.6 billion will be paid in the second half of 2025 in relation to the upfront payment. \n In the six months to 30 June 2025, the Group's estimated share of the undiscounted future liability has not materially changed. However, the Group has recognised a net credit of £575 million as the provision recognised in relation to the Canadian litigation settlement was updated in line with the latest forecast of the Canadian combustibles industry performance, impacting the present value of the future liability described on page 26. The update was, in particular, in respect of pricing and volume decline assumptions, The net credit has been treated as an adjusting item. \n At 30 June 2025, restricted cash in ITCAN was £2,047 million and restricted investments held at fair value were £427 million, with goodwill recognised on the balance of the Group at £2,148 million. \n Please refer to \"Contingent Liabilities and Financial Commitments\" below (page 34) and the Group's Annual Report and Accounts and Form 20-F for the year ended 31 December 2024 (note 12 Intangible Assets and note 31 Contingent Liabilities and Financial Commitments) for a full discussion of the case and the assessment of goodwill. \n There has been no trigger to further reassess goodwill for impairment at 30 June 2025. \n Adjusted performance: \n As the Chief Operating Decision Maker, the Management Board (from 1 January 2025) assesses the performance of the Group by reviewing adjusted profit from operations as adjusted for Canada using the prior year translational exchange rate (constant rate) to evaluate segment performance and allocate resources to the overall business on a regional basis. \n This new measure, being adjusted profit from operations as adjusted for Canada, at constant rates, recognises a charge calculated in line with the Approved Plans - based on a percentage of Imperial Tobacco Canada Limited's and Imperial Tobacco Company Limited's (together ITCAN) adjusted profit from operations from all sources in Canada, excluding New Categories. This charge will continue until the aggregate settlement amount is paid. This is reflected in the adjusted performance of the Group and is referred to as \"as adjusted for Canada\". This approach presents the economic delivery from the AME region in a manner comparable to that of the other regions in the Group. \n Due to the uncertain nature of the timing of the implementation of the settlement on the Group's 2025 results, for the purposes of 2025 versus 2024 this charge is 100% of the adjusted profit from operations from all sources in Canada, excluding New Categories. \n From 2026 (assuming the Approved Plans as sanctioned by the Court on 6 March 2025 have been implemented in 2025), this charge will (following the underlying terms of the Approved Plans) be 85% of the adjusted profit from operations earned in Canada from all sources, excluding New Categories, reducing in future periods in line with the Approved Plans. \n Also from 1 January 2025, the Group has recognised an adjusting charge in net finance costs in respect of interest earned on the restricted cash held in Canada that will be paid as part of the upfront settlement payment. This is adjusted out from the current year and comparator performance, as the interest income is not representative of the ongoing business. \n   \n Update on investigations and other proceedings \n The Group investigates, and becomes aware of governmental authorities' investigations into, allegations of misconduct, including alleged breaches of sanctions and allegations of corruption at Group companies. Some of these allegations are currently being investigated. The Group cooperates with the authorities, where appropriate. \n In addition, the Group is, and may in the future be, subject to investigations or legal proceedings in relation to, among other things, its marketing, promotion or distribution activities in respect of its products.  As such, the Group or Group companies, could be subject to liability and costs associated with any damages, fines, or penalties brought in connection with these allegations. \n   \n Other Information \n Continued \n Operational and process review \n To further support our transformation and underpin investment initiatives to drive long-term sustainable profit and cash flow growth, we have started a structured time-bound programme to review processes and ways of working which will generate efficiencies and facilitate faster, more agile and effective decision making. \n This programme includes a comprehensive review of our overhead optimisation opportunities, route to market and digitalisation, in order to deliver more effective, data-driven digital ways of working. \n It is expected to generate annualised cost efficiencies and cash flow of c.£500 million by the end of 2028 which will be re-invested to support further sustainable growth initiatives. These savings are in addition to the £2 billion of targeted savings between 2026 and 2030 announced at our Capital Markets Day in 2024. \n We expect associated one-off costs of £500 million, which as a one-off time bound programme and, to aid comparison of performance, c.£350 million will be treated as adjusting items having commenced in H1 2025 and which are expected to complete in 2027. \n   \n Changes to the Main Board and Management Board \n As previously disclosed, the following Board changes have taken place: \n -  Karen Guerra joined the Remuneration Committee and stepped down from the Audit Committee with effect from 10 February 2025; \n - Uta Kemmerich-Keil joined the Board as an independent Non-Executive Director and member of the Audit and Nominations Committees with effect from 17 February 2025; and \n - Murray S. Kessler stepped down from the Board with effect from 17 February 2025 and did not stand for re-election at the Annual General Meeting in April 2025. \n As announced on 14 July 2025, the following Management Board changes will take place: \n - Michael Dijanosic, Regional Director, Asia Pacific, Middle East and Africa (APMEA) will step down from his role and from the Management Board on 31 December 2025; and \n - Pascale Meulemeester will be appointed as Regional Director Designate (APMEA), with effect from 1 September 2025 and then as Regional Director, APMEA, and a member of the Management Board with effect from 1 January 2026.   \n   \n Going concern \n A description of the Group's business activities, its financial position, cash flows, liquidity position, facilities and borrowings position, together with the factors likely to affect its future development, performance and position, as well as risks associated with the business, are set out in the Strategic Report and in the Notes on the Accounts, all of which are included in the Group's Annual Report and Accounts and Form 20-F for the year ended 31 December 2024, and available on the Group's website, www.bat.com . \n This Half-Year Report provides updated information regarding the business activities, including cash flow, for the six months to 30 June 2025 and of the financial position and liquidity position at 30 June 2025. \n The Group has, at the date of this announcement, sufficient existing financing available for its estimated requirements for at least 12 months from the date of approval of this condensed consolidated financial information. This, together with the ability to generate cash from trading activities, the performance of the Group's Strategic Portfolio, its leading market positions in a number of countries and its broad geographical spread, as well as numerous contracts with established customers and suppliers across different geographical areas and industries, provides the Directors with the confidence that the Group is well placed to manage its business risks successfully through the ongoing uncertainty, the current macro-economic financial conditions and the general outlook in the global economy. \n After reviewing the Group's forecast financial performance and financing arrangements, the Directors consider that the Group has adequate resources to continue operating for at least 12 months from the date of approval of this condensed consolidated financial information and that it is therefore appropriate to continue to adopt the going concern basis in preparing this Half-Year Report. \n Directors' Responsibility Statement \n The Directors confirm that, to the best of their knowledge, this condensed consolidated financial information has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and as issued by the International Accounting Standards Board (IASB), and that this Half-Year Report includes a fair review of the information required by both DTR 4.2.7R and DTR 4.2.8R of the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority. \n The Directors of British American Tobacco p.l.c. are as listed on pages 166 to 169 in the British American Tobacco Annual Report and Form 20-F for the year ended 31 December 2024, with the exceptions of Murray S. Kessler who stepped down on 17 February 2025 and Uta Kemmerich-Keil who was appointed as a Non-Executive Director with effect from 17 February 2025. \n Details of all the current Directors of British American Tobacco p.l.c. are maintained on www.bat.com . \n For and on behalf of the Board of Directors: \n   \n   \n   \n \n \n \n \n Luc Jobin \n Chair \n 30 July 2025 \n \n \n Soraya Benchikh \n Chief Financial Officer \n 30 July 2025 \n \n \n \n \n   \n   \n Independent Review Report to British American Tobacco p.l.c. \n Conclusion \n We have been engaged by British American Tobacco p.l.c. (the \"Company\") to review the condensed consolidated financial information in the Half-Year Report for the six months ended 30 June 2025 which comprises the Group Income Statement, the Group Statement of Comprehensive Income, the Group Statement of Changes in Equity, the Group Balance Sheet, the Group Cash Flow Statement and the related explanatory notes. \n Based on our review, nothing has come to our attention that causes us to believe that the condensed consolidated financial information in the Half-Year Report for the six months ended 30 June 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules (the \"DTR\") of the UK's Financial Conduct Authority (the \"UK FCA\").  \n Basis for conclusion \n We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity (\"ISRE (UK) 2410\") issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the Half-Year Report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed consolidated financial information. \n A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion. \n Conclusions relating to going concern \n Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have not been appropriately disclosed. \n This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the Group to cease to continue as a going concern, and the above conclusions are not a guarantee that the Group will continue in operation. \n Directors' responsibilities \n The Half-Year Report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the Half-Year Report in accordance with the DTR of the UK FCA. \n As disclosed in the Accounting Policies and Basis of Preparation note, the annual financial statements of the Group are prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), and UK-adopted international accounting standards. \n The directors are responsible for preparing the condensed consolidated financial information included in the Half-Year Report in accordance with IAS 34 as adopted for use in the UK and as issued by the IASB. \n In preparing the condensed consolidated financial information, the directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so. \n Our responsibility \n Our responsibility is to express to the Company a conclusion on the condensed consolidated financial information in the Half-Year Report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report. \n The purpose of our review work and to whom we owe our responsibilities \n This report is made solely to the Company in accordance with the terms of our engagement to assist the Company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the Company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company for our review work, for this report, or for the conclusions we have reached. \n   \n   \n   \n Philip Smart \n for and on behalf of KPMG LLP \n Chartered Accountants \n 15 Canada Square, London E14 5GL \n 30 July 2025 \n   \n Contents \n   \n \n \n \n \n   \n \n \n Page \n \n \n \n \n Financial Statements: \n \n \n   \n \n \n \n \n Group Income Statement \n \n \n 17 \n \n \n \n \n Group Statement of Comprehensive Income \n \n \n 18 \n \n \n \n \n Group Statement of Changes in Equity \n \n \n 19 \n \n \n \n \n Group Balance Sheet \n \n \n 21 \n \n \n \n \n Group Cash Flow Statement \n \n \n 22 \n \n \n \n \n Notes to the Unaudited Interim Financial Statements \n \n \n 23 \n \n \n \n \n Other Information \n \n \n 40 \n \n \n \n \n Data Lake and Reconciliations \n \n \n 47 \n \n \n \n \n   \n   \n Interim Financial Statements (unaudited) \n Group Income Statement \n \n \n \n \n   \n \n \n Six months ended \n 30 June \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n £m  \n \n \n £m \n \n \n \n \n Revenue 1 \n \n \n 12,069 \n \n \n 12,340 \n \n \n \n \n Raw materials and consumables used \n \n \n (2,166) \n \n \n (2,304) \n \n \n \n \n Changes in inventories of finished goods and work in progress \n \n \n 185 \n \n \n 140 \n \n \n \n \n Employee benefit costs \n \n \n (1,463) \n \n \n (1,375) \n \n \n \n \n Depreciation, amortisation and impairment costs \n \n \n (1,192) \n \n \n (1,620) \n \n \n \n \n Other operating income \n \n \n 54 \n \n \n 223 \n \n \n \n \n Loss on reclassification from amortised cost to fair value \n \n \n (5) \n \n \n (4) \n \n \n \n \n Other operating expenses \n \n \n (2,413) \n \n \n (3,142) \n \n \n \n \n Profit from operations \n \n \n 5,069 \n \n \n 4,258 \n \n \n \n \n Net finance costs \n \n \n (969) \n \n \n (305) \n \n \n \n \n Share of post-tax results of associates and joint ventures \n \n \n 1,474 \n \n \n 1,647 \n \n \n \n \n Profit before taxation \n \n \n 5,574 \n \n \n 5,600 \n \n \n \n \n Taxation on ordinary activities \n \n \n (1,009) \n \n \n (1,041) \n \n \n \n \n Profit for the period \n \n \n 4,565 \n \n \n 4,559 \n \n \n \n \n Attributable to: \n \n \n   \n \n \n   \n \n \n \n \n Owners of the parent \n \n \n 4,512 \n \n \n 4,492 \n \n \n \n \n Non-controlling interests \n \n \n 53 \n \n \n 67 \n \n \n \n \n   \n \n \n 4,565 \n \n \n 4,559 \n \n \n \n \n Earnings per share \n \n \n   \n \n \n   \n \n \n \n \n Basic \n \n \n 204.6p \n \n \n 201.1p \n \n \n \n \n Diluted \n \n \n 203.6p \n \n \n 200.3p \n \n \n \n \n All of the activities during both years are in respect of continuing operations. \n The accompanying notes on pages 23 to 39 form an integral part of this condensed consolidated financial information. \n 1.   Revenue is net of duty, excise and other taxes of £15,515 million and £16,509 million for the six months ended 30 June 2025 and 30 June 2024, respectively. \n   \n Interim Financial Statements (unaudited) \n Continued \n Group Statement of Comprehensive Income \n \n \n \n \n   \n \n \n Six months ended \n 30 June \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n £m  \n \n \n £m  \n \n \n \n \n Profit for the period (page 17) \n \n \n 4,565 \n \n \n 4,559 \n \n \n \n \n Other comprehensive income \n \n \n   \n \n \n   \n \n \n \n \n Items that may be reclassified subsequently to profit or loss: \n \n \n (4,255) \n \n \n (19) \n \n \n \n \n Foreign currency translation and hedges of net investments in foreign operations \n \n \n   \n \n \n   \n \n \n \n \n - differences on exchange from translation of foreign operations \n \n \n (4,360) \n \n \n (123) \n \n \n \n \n - net investment hedges - net fair value gains/(losses) on derivatives \n \n \n 221 \n \n \n (7) \n \n \n \n \n - net investment hedges - differences on exchange on borrowings \n \n \n (13) \n \n \n 8 \n \n \n \n \n Cash flow hedges \n \n \n   \n \n \n   \n \n \n \n \n - net fair value (losses)/gains \n \n \n (45) \n \n \n 51 \n \n \n \n \n - reclassified and reported in profit for the period \n \n \n 23 \n \n \n 17 \n \n \n \n \n - tax on net fair value (losses)/gains in respect of cash flow hedges \n \n \n 7 \n \n \n (23) \n \n \n \n \n Associates \n \n \n   \n \n \n   \n \n \n \n \n - share of OCI, net of tax \n \n \n (135) \n \n \n 15 \n \n \n \n \n - differences on exchange reclassified to profit or loss \n \n \n 47 \n \n \n 43 \n \n \n \n \n Items that will not be reclassified subsequently to profit or loss: \n \n \n (6) \n \n \n 50 \n \n \n \n \n Retirement benefit schemes \n \n \n   \n \n \n   \n \n \n \n \n - net actuarial (losses)/gains \n \n \n (37) \n \n \n 21 \n \n \n \n \n - movements in surplus restrictions \n \n \n (39) \n \n \n (24) \n \n \n \n \n - tax on actuarial (losses)/gains and movements in surplus restrictions \n \n \n 5 \n \n \n 1 \n \n \n \n \n Investments held at fair value \n \n \n   \n \n \n   \n \n \n \n \n - net fair value gains \n \n \n 70 \n \n \n - \n \n \n \n \n Associates - share of OCI, net of tax \n \n \n (5) \n \n \n 52 \n \n \n \n \n Total other comprehensive (expense)/income for the period, net of tax \n \n \n (4,261) \n \n \n 31 \n \n \n \n \n Total comprehensive income for the period, net of tax \n \n \n 304 \n \n \n 4,590 \n \n \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Attributable to: \n \n \n   \n \n \n   \n \n \n \n \n Owners of the parent \n \n \n 279 \n \n \n 4,526 \n \n \n \n \n Non-controlling interests \n \n \n 25 \n \n \n 64 \n \n \n \n \n   \n \n \n 304 \n \n \n 4,590 \n \n \n \n \n The accompanying notes on pages 23 to 39 form an integral part of this condensed consolidated financial information. \n   \n Interim Financial Statements (unaudited) \n Continued \n Group Statement of Changes in Equity \n \n \n \n \n At 30 June 2025 \n \n \n Attributable to owners of the parent \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Share \n capital \n \n \n Share premium, capital redemption and merger reserves \n \n \n Other \n reserves \n \n \n Retained \n earnings \n \n \n Total attributable \n to owners \n of parent \n \n \n Perpetual hybrid bonds \n \n \n Non-controlling interests \n \n \n   \n Total equity \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Balance at 1 January 2025 \n \n \n 585 \n \n \n 26,665 \n \n \n (902) \n \n \n 21,610 \n \n \n 47,958 \n \n \n 1,685 \n \n \n 352 \n \n \n 49,995 \n \n \n \n \n Total comprehensive (expense)/income for the period comprising: (page 18) \n \n \n - \n \n \n - \n \n \n (4,160) \n \n \n 4,439 \n \n \n 279 \n \n \n - \n \n \n 25 \n \n \n 304 \n \n \n \n \n Profit for the period (page 17) \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,512 \n \n \n 4,512 \n \n \n - \n \n \n 53 \n \n \n 4,565 \n \n \n \n \n Other comprehensive expense for the period  (page 18) \n \n \n - \n \n \n - \n \n \n (4,160) \n \n \n (73) \n \n \n (4,233) \n \n \n - \n \n \n (28) \n \n \n (4,261) \n \n \n \n \n Other changes in equity \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cash flow hedges reclassified and reported in total assets \n \n \n - \n \n \n - \n \n \n 5 \n \n \n - \n \n \n 5 \n \n \n - \n \n \n - \n \n \n 5 \n \n \n \n \n Employee share options \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  value of employee services \n \n \n - \n \n \n - \n \n \n - \n \n \n 35 \n \n \n 35 \n \n \n - \n \n \n - \n \n \n 35 \n \n \n \n \n -  proceeds from new shares issued \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n 1 \n \n \n - \n \n \n - \n \n \n 1 \n \n \n \n \n -  treasury shares used for share option schemes \n \n \n - \n \n \n 1 \n \n \n - \n \n \n (1) \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n \n \n Dividends and other appropriations \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  ordinary shares \n \n \n - \n \n \n - \n \n \n - \n \n \n (2,609) \n \n \n (2,609) \n \n \n - \n \n \n - \n \n \n (2,609) \n \n \n \n \n -  to non-controlling interests \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (74) \n \n \n (74) \n \n \n \n \n Purchase of own shares \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  held in employee share ownership trusts \n \n \n - \n \n \n - \n \n \n - \n \n \n (61) \n \n \n (61) \n \n \n - \n \n \n - \n \n \n (61) \n \n \n \n \n -  share buy-back programme and cancelled shares \n \n \n (4) \n \n \n 4 \n \n \n - \n \n \n (450) \n \n \n (450) \n \n \n - \n \n \n - \n \n \n (450) \n \n \n \n \n Other movements \n \n \n - \n \n \n - \n \n \n - \n \n \n 31 \n \n \n 31 \n \n \n - \n \n \n - \n \n \n 31 \n \n \n \n \n Balance at 30 June 2025 \n \n \n 581 \n \n \n 26,671 \n \n \n (5,057) \n \n \n 22,994 \n \n \n 45,189 \n \n \n 1,685 \n \n \n 303 \n \n \n 47,177 \n \n \n \n \n   \n \n \n \n \n At 30 June 2024 \n \n \n Attributable to owners of the parent \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Share \n capital \n \n \n Share premium, capital redemption and merger reserves \n \n \n Other \n reserves \n \n \n Retained \n earnings \n \n \n Total attributable \n to owners \n of parent \n \n \n Perpetual hybrid bonds \n \n \n Non-controlling interests \n \n \n Total equity \n \n \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n £m \n \n \n \n \n Balance at 1 January 2024 \n \n \n 614 \n \n \n 26,630 \n \n \n (894) \n \n \n 24,531 \n \n \n 50,881 \n \n \n 1,685 \n \n \n 368 \n \n \n 52,934 \n \n \n \n \n Total comprehensive income for the period comprising: (page 18) \n \n \n - \n \n \n - \n \n \n 36 \n \n \n 4,490 \n \n \n 4,526 \n \n \n - \n \n \n 64 \n \n \n 4,590 \n \n \n \n \n Profit for the period (page 17) \n \n \n - \n \n \n - \n \n \n - \n \n \n 4,492 \n \n \n 4,492 \n \n \n - \n \n \n 67 \n \n \n 4,559 \n \n \n \n \n Other comprehensive income/(expense)  for the period (page 18) \n \n \n - \n \n \n - \n \n \n 36 \n \n \n (2) \n \n \n 34 \n \n \n - \n \n \n (3) \n \n \n 31 \n \n \n \n \n Other changes in equity \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Cash flow hedges reclassified and reported in total assets \n \n \n - \n \n \n - \n \n \n 11 \n \n \n - \n \n \n 11 \n \n \n - \n \n \n - \n \n \n 11 \n \n \n \n \n Employee share options \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  value of employee services \n \n \n - \n \n \n - \n \n \n - \n \n \n 30 \n \n \n 30 \n \n \n - \n \n \n - \n \n \n 30 \n \n \n \n \n -  proceeds from new shares issued \n \n \n - \n \n \n 4 \n \n \n - \n \n \n - \n \n \n 4 \n \n \n - \n \n \n - \n \n \n 4 \n \n \n \n \n Dividends and other appropriations \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  ordinary shares \n \n \n - \n \n \n - \n \n \n - \n \n \n (2,603) \n \n \n (2,603) \n \n \n - \n \n \n - \n \n \n (2,603) \n \n \n \n \n -  to non-controlling interests \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n - \n \n \n (74) \n \n \n (74) \n \n \n \n \n Purchase of own shares \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n -  held in employee share ownership trusts \n \n \n - \n \n \n - \n \n \n - \n \n \n (93) \n \n \n (93) \n \n \n - \n \n \n - \n \n \n (93) \n \n \n \n \n -  share buy-back programme and cancelled shares, including treasury shares \n \n \n (25) \n \n \n 25 \n \n \n - \n \n \n (366) \n \n \n (366) \n \n \n - \n \n \n - \n \n \n (366) \n \n \n \n \n Other movements \n \n \n - \n \n \n - \n \n \n - \n \n \n 36 \n \n \n 36 \n \n \n - \n \n \n - \n \n \n 36 \n \n \n \n \n Balance at 30 June 2024 \n \n \n 589 \n \n \n 26,659 \n \n \n (847) \n \n \n 26,025 \n \n \n 52,426 \n \n \n 1,685 \n \n \n 358 \n \n \n 54,469 \n \n \n \n \n The accompanying notes on pages 23 to 39 form an integral part of this condensed consolidated financial information. \n   \n Interim Financial Statements (unaudited) \n Continued \n Group Balance Sheet \n \n \n \n \n   \n \n \n As at 30 June \n \n \n   \n \n \n As at 31 December \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n   \n \n \n 2024 \n \n \n \n \n £m  \n \n \n £m  \n \n \n   \n \n \n £m  \n \n \n \n \n Assets \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Intangible assets \n \n \n 86,223 \n \n \n 94,700 \n \n \n   \n \n \n 94,276 \n \n \n \n \n Property, plant and equipment \n \n \n 4,159 \n \n \n 4,427 \n \n \n   \n \n \n 4,379 \n \n \n \n \n Investments in associates and joint ventures \n \n \n 1,533 \n \n \n 1,937 \n \n \n   \n \n \n 1,902 \n \n \n \n \n Retirement benefit assets \n \n \n 841 \n \n \n 940 \n \n \n   \n \n \n 937 \n \n \n \n \n Deferred tax assets \n \n \n 2,434 \n \n \n 953 \n \n \n   \n \n \n 2,573 \n \n \n \n \n Trade and other receivables \n \n \n 283 \n \n \n 318 \n \n \n   \n \n \n 282 \n \n \n \n \n Investments held at fair value \n \n \n 737 \n \n \n 122 \n \n \n   \n \n \n 146 \n \n \n \n \n Derivative financial instruments \n \n \n 141 \n \n \n 100 \n \n \n   \n \n \n 110 \n \n \n \n \n Total non-current assets \n \n \n 96,351 \n \n \n 103,497 \n \n \n   \n \n \n 104,605 \n \n \n \n \n Inventories \n \n \n 5,088 \n \n \n 5,334 \n \n \n   \n \n \n 4,616 \n \n \n \n \n Income tax receivable \n \n \n 108 \n \n \n 100 \n \n \n   \n \n \n 67 \n \n \n \n \n Trade and other receivables \n \n \n 3,475 \n \n \n 3,637 \n \n \n   \n \n \n 3,604 \n \n \n \n \n Investments held at fair value \n \n \n 489 \n \n \n 696 \n \n \n   \n \n \n 513 \n \n \n \n \n Derivative financial instruments \n \n \n 302 \n \n \n 159 \n \n \n   \n \n \n 186 \n \n \n \n \n Cash and cash equivalents \n \n \n 4,404 \n \n \n 5,934 \n \n \n   \n \n \n 5,297 \n \n \n \n \n   \n \n \n 13,866 \n \n \n 15,860 \n \n \n   \n \n \n 14,283 \n \n \n \n \n Assets classified as held-for-sale \n \n \n 9 \n \n \n 12 \n \n \n   \n \n \n 11 \n \n \n \n \n Total current assets \n \n \n 13,875 \n \n \n 15,872 \n \n \n   \n \n \n 14,294 \n \n \n \n \n Total assets \n \n \n 110,226 \n \n \n 119,369 \n \n \n   \n \n \n 118,899 \n \n \n \n \n Equity - capital and reserves \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Share capital \n \n \n 581 \n \n \n 589 \n \n \n   \n \n \n 585 \n \n \n \n \n Share premium, capital redemption and merger reserves \n \n \n 26,671 \n \n \n 26,659 \n \n \n   \n \n \n 26,665 \n \n \n \n \n Other reserves \n \n \n (5,057) \n \n \n (847) \n \n \n   \n \n \n (902) \n \n \n \n \n Retained earnings \n \n \n 22,994 \n \n \n 26,025 \n \n \n   \n \n \n 21,610 \n \n \n \n \n Owners of the parent \n \n \n 45,189 \n \n \n 52,426 \n \n \n   \n \n \n 47,958 \n \n \n \n \n Perpetual hybrid bonds \n \n \n 1,685 \n \n \n 1,685 \n \n \n   \n \n \n 1,685 \n \n \n \n \n Non-controlling interests \n \n \n 303 \n \n \n 358 \n \n \n   \n \n \n 352 \n \n \n \n \n Total equity \n \n \n 47,177 \n \n \n 54,469 \n \n \n   \n \n \n 49,995 \n \n \n \n \n Liabilities \n \n \n   \n \n \n   \n \n \n   \n \n \n   \n \n \n \n \n Borrowings \n \n \n 31,904 \n \n \n 32,852 \n \n \n   \n \n \n 32,638 \n \n \n \n \n Retirement benefit liabilities \n \n \n 769 \n \n \n 852 \n \n \n   \n \n \n 820 \n \n \n \n \n Deferred tax liabilities \n \n \n 10,432 \n \n \n 11,878 \n \n \n   \n \n \n 11,679 \n \n \n \n \n Other provisions for liabilities \n \n \n 3,212 \n \n \n 271 \n \n \n   \n \n \n 4,071 \n \n \n \n \n Trade and other payables \n \n \n 586 \n \n \n 788 \n \n \n   \n \n \n 685 \n \n \n \n \n Derivative financial instruments \n \n \n 150 \n \n \n 217 \n \n \n   \n \n \n 268 \n \n \n \n \n Total non-current liabilities \n \n \n 47,053 \n \n \n 46,858 \n \n \n   \n \n \n 50,161 \n \n \n \n \n Borrowings \n \n \n 3,304 \n \n \n 7,306 \n \n \n   \n \n \n 4,312 \n \n \n \n \n Income tax payable \n \n \n 1,172 \n \n \n 1,184 \n \n \n   \n \n \n 1,681 \n \n \n \n \n Other provisions for liabilities \n \n \n 3,089 \n \n \n 416 \n \n \n   \n \n \n 3,044 \n \n \n \n \n Trade and other payables \n \n \n 8,243 \n \n \n 9,017 \n \n \n   \n \n \n 9,550 \n \n \n \n \n Derivative financial instruments \n \n \n 188 \n \n \n 119 \n \n \n   \n \n \n 156 \n \n \n \n \n Total current liabilities \n \n \n 15,996 \n \n \n 18,042 \n \n \n   \n \n \n 18,743 \n \n \n \n \n Total equity and liabilities \n \n \n 110,226 \n \n \n 119,369 \n \n \n   \n \n \n 118,899 \n \n \n \n \n   \n The accompanying notes on pages 23 to 39 form an integral part of this condensed consolidated financial information. \n   \n Interim Financial Statements (unaudited) \n Continued \n Group Cash Flow Statement \n \n \n \n \n   \n \n \n Six months ended \n 30 June \n \n \n \n \n 2025 \n \n \n 2024 \n \n \n \n \n £m  \n \n \n £m  \n \n \n \n \n Cash flows from operating activities \n \n \n   \n \n \n   \n \n \n \n \n Cash generated from operating activities (page 31) \n \n \n 3,717 \n \n \n 4,122 \n \n \n \n \n Dividends received from associates \n \n \n 168 \n \n \n 196 \n \n \n \n \n Tax paid \n \n \n (1,576) \n \n \n (1,153) \n \n \n \n \n Net cash generated from operating activities \n \n \n 2,309 \n \n \n 3,165 \n \n \n \n \n Cash flows from investing activities \n \n \n   \n \n \n   \n \n \n \n \n Interest received \n \n \n 85 \n \n \n 84 \n \n \n \n \n Purchases of property, plant and equipment \n \n \n (103) \n \n \n (116) \n \n \n \n \n Proceeds on disposal of property, plant and equipment \n \n \n 21 \n \n \n 50 \n \n \n \n \n Purchases of intangibles \n \n \n (42) \n \n \n (31) \n \n \n \n \n Proceeds on disposal of intangibles \n \n \n 8 \n \n \n - \n \n \n \n \n Purchases of investments \n \n \n (59) \n \n \n (206) \n \n \n \n \n Proceeds on disposals of investments \n \n \n 73 \n \n \n 99 \n \n \n \n \n Investment in associates and acquisitions of other subsidiaries net of cash acquired \n \n \n (23) \n \n \n (24) \n \n \n \n \n Net proceeds from disposal of shares in associate, net of tax \n \n \n 1,052 \n \n \n 1,577 \n \n \n \n \n Net cash generated from investing activities \n \n \n 1,012 \n \n \n 1,433 \n \n \n \n \n Cash flows from financing activities \n \n \n   \n \n \n   \n \n \n \n \n Interest paid on borrowings and financing related activities \n \n \n (879) \n \n \n (889) \n \n \n \n \n Interest element of lease liabilities \n \n \n (21) \n \n \n (18) \n \n \n \n \n Capital element on lease liabilities \n \n \n (95) \n \n \n (83) \n \n \n \n \n Proceeds from increases in and new borrowings \n \n \n 3,552 \n \n \n 2,370 \n \n \n \n \n Reductions in and repayments of borrowings \n \n \n (3,047) \n \n \n (1,502) \n \n \n \n \n Outflows relating to derivative financial instruments \n \n \n (445) \n \n \n (115) \n \n \n \n \n Purchases of own shares - share buy-back programme \n \n \n (450) \n \n \n (366) \n \n \n \n \n Purchases of own shares held in employee share ownership trusts \n \n \n (61) \n \n \n (93) \n \n \n \n \n Dividends paid to owners of the parent \n \n \n (2,609) \n \n \n (2,605) \n \n \n \n \n Dividends paid to non-controlling interests \n \n \n (63) \n \n \n (62) \n \n \n \n \n Other \n \n \n 1 \n \n \n 5 \n \n \n \n \n Net cash used in financing activities \n \n \n (4,117) \n \n \n (3,358) \n \n \n \n \n Net cash flows (used in)/generated from operating, investing and financing activities \n \n \n (796) \n \n \n 1,240 \n \n \n \n \n Differences on exchange \n \n \n (144) \n \n \n (63) \n \n \n \n \n (Decrease)/increase in net cash and cash equivalents in the year \n \n \n (940) \n \n \n 1,177 \n \n \n \n \n Net cash and cash equivalents at 1 January \n \n \n 5,104 \n \n \n 4,517 \n \n \n \n \n Net cash and cash equivalents at period end \n \n \n 4,164 \n \n \n 5,694 \n \n \n \n \n Cash and cash equivalents per balance sheet \n \n \n 4,404 \n \n \n 5,934 \n \n \n \n \n Overdrafts and accrued interest \n \n \n (240) \n \n \n (240) \n \n \n \n \n Net cash and cash equivalents at period end \n \n \n 4,164 \n \n \n 5,694 \n \n \n \n \n The accompanying notes on pages 23 to 39 form an integral part of this condensed consolidated financial information. \n The net cash flows relating to the adjusting items within profit from operations on pages 25 t o 26, included in the above, are an outflow of £430 million (30 June 2024: £339 m...

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