LSE:BATS

British American Tobacco reported accelerating momentum in 2025, delivering results at the top end of guidance and reinforcing confidence in its mid-term growth outlook from 2026.

Reported revenue declined 1.0% due to currency effects but increased 2.1% at constant FX. New Categories revenue rose 7.0% for the year, returning to double-digit growth in H2, with contribution up 77% to £442 million. Smokeless products now represent 18.2% of Group revenue, with 4.7 million new consumers added, bringing the total to 34.1 million.

The U.S. business showed strong combustibles growth, while Velo Plus delivered triple-digit revenue growth and reached the number two position in volume and value share. Adjusted profit from operations increased 2.3%, and adjusted diluted EPS rose 3.4%. Reported profit and EPS rose sharply, mainly due to movements in the Canadian settlement provision.

The Group reaffirmed its mid-term targets of 3–5% revenue growth, 4–6% adjusted operating profit growth and 5–8% adjusted diluted EPS growth, with 2026 expected at the lower end as investment continues. Leverage is projected to fall within the 2.0–2.5x range by end-2026. A 2.0% dividend increase to 245.04p and a £1.3 billion share buyback for 2026 were announced.
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Author
European Investor 02-12-26
BAT has been named a Global Top Employer for the ninth consecutive year by the Top Employers Institute. For 2026, BAT was accredited across five regions and achieved Top Employer status in a record 44 countries worldwide.

The recognition highlights BAT’s focus on inclusive culture, employee development and consistent people practices across markets, supporting the company’s ongoing business transformation and long-term workforce strategy.
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Author
European Investor 01-24-26
British American Tobacco has completed the sale of 187.5 million ordinary shares in ITC Hotels through an accelerated bookbuild, representing 9 percent of the company’s share capital. The block trade was executed following BAT’s announcement on 4 December 2025.

The transaction generated net proceeds of INR 38.2 billion, equivalent to approximately £315 million at current exchange rates. BAT stated that the funds will support progress toward its target leverage corridor of 2 to 2.5 times adjusted net debt to adjusted EBITDA (excluding Canada) by the end of 2026.

After the sale, BAT retains an ownership stake of roughly 6.3 percent in ITC Hotels.
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Author
European Investor 12-07-25
BAT to sell up to 15.3% stake in ITC Hotels via block trade

BAT announced plans to sell between 7 percent and approximately 15.3 percent of ITC Hotels’ outstanding shares through an accelerated bookbuild. The exact size of the block trade will be set to achieve the best pricing outcome, with proceeds earmarked to help the Group reach its target leverage corridor of 2–2.5x adjusted net debt/adjusted EBITDA by the end of 2026.

BAT’s stake in ITC Hotels arose from the hotel group’s demerger from ITC Limited earlier in 2025, after which ITC Hotels began trading as a public company. CEO Tadeu Marroco reiterated that the holding is non-strategic and that selling the shares aligns with BAT’s financial priorities.

Details on the final number of shares sold and net proceeds will be disclosed once the transaction is completed.
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Author
European Investor 12-04-25