Highlights

  • BAT expects c.2% revenue and adjusted profit from operations growth for FY25.
  • New Category revenue led by Velo Plus accelerates to double-digit growth in H2.
  • FY26 share buy-back programme set at GBP1.3bn alongside planned dividends and leverage reduction.

British American Tobacco (LSE:BATS) has reaffirmed its guidance for FY25, projecting approximately 2% growth in revenue and adjusted profit from operations (APFO1) at constant rates. New Category revenue is accelerating in H2, contributing to mid-single digit growth for the full fiscal year.

Regional and Product Performance
In the U.S., the company reported improved revenue and profit, supported by combustibles delivery and Velo Plus, which is on track for full-year profitability3. Early indications of Federal and State enforcement actions addressing illicit Vapour products have supported recent improvements in Vuse volume and revenue.

New Category Performance

Achieved volume share gains of +460bps to 15.9% of Total Oral and +590bps to 31.8% of Modern Oral in top markets. In the U.S., Velo Plus volume share of Modern Oral rose +920bps to 15.6%, with double-digit revenue growth.

Full-year revenue broadly flat, with volume share in top markets down -1.2ppts, affected by Japan and phase-out of legacy super-slims. glo Hilo is being established in premium segments, with H2 launches in Japan (Sept), Poland (Oct), and Italy (Nov).

Global tracked channels value share in top markets rose +10bps, driven by U.S. +70bps. Early results for Vuse Ultra are reported in Canada, Germany, and France, while FY revenue is expected to be down high-single digit due to illicit Vapour and market exits.

Cash Flow and Capital Allocation
BAT expects operating cash flow conversion in excess of 95% for FY25. Net finance costs are projected at c.GBP1.8bn, subject to FX and interest rate fluctuations. The company intends to reduce leverage to 2.0–2.5x adjusted net debt/EBITDA by the end of 2026 while maintaining dividends and the GBP1.3bn FY26 share buy-back programme. Gross capital expenditure for 2025 is projected at c.GBP650m.

Share Price Snapshot
BATS was trading 3.71% lower at GBX 4,157 per share as of 09 December 2025