| Imagery Source: Wikimedia Commons / H005 |
| Information Source: JSE SENS |
| Half-Year Summary |
- 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.
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- New Categories revenue in line with 2024 at £1,651 million - an increase of 2.4% at constant FX
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- Smokeless products now 18.2% of Group revenue, up 70 bps vs FY24
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- Phased roll-out of innovations is expected to drive an accelerated H2 New Category performance
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- New Categories contribution margin increased by 2.8 ppts to 10.6% at constant FX
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- Improved combustibles' financial performance (at constant FX), driven by price/mix
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- 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 non-repeating impairment charges negatively impacted the prior year
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- 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%
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- Reported diluted EPS up 1.6% to 203.6p, with adjusted diluted EPS(as adjusted for Canada) up 1.7% at constant FX
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- Increased 2025 share buy-back programme by £200 million to £1.1 billion
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| Tadeu Marroco, Chief Executive Officer of British American Tobacco p.l.c. |
| “Our H1 performance is slightly ahead of expectations. 2025 is a deployment year, and we are firmly on track to deliver our FY guidance. |
| We added 1.4 million consumers (bringing our total to 30.5 million) for our smokeless brands. Our smokeless portfolio now accounts for 18.2% of Group revenue, an increase of 70 bps vs FY24. |
| 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. |
| 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. |
| Our continued strong cash conversion and the recent partial monetisation of our ITC stake have enhanced our capital flexibility, whilst further financial discipline will drive additional cost savings and smart re-investment. |
| 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.” |
| On Track for Full-Year 2025 Guidance |
- Global tobacco industry volume expected to be down by c.2%.
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- Revenue growth at the top end of the 1.0-2.0% guidance range*, with mid-single digit New Category revenue growth*.
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- 1.5-2.5% adjusted profit from operations growth (adj. for Canada)* including an expected c.1.0-1.5% transactional FX headwind.
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- We expect a translational FX headwind of c.4% on adjusted profit from operations (adj. for Canada).
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- Net finance costs expected to be c.£1.8 billion (adj. for Canada)*, subject to interest rate volatility.
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- Gross capital expenditure in 2025 of approximately £650 million.
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- Operating cash flow conversion that exceeds 90%.
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- Continue to deleverage to our 2.0-2.5x adjusted net debt/adjusted EBITDA (adj. for Canada)* corridor by 2026.
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- Commitment to dividend growth in sterling terms and £1.1 billion share buy-back.
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| * at constant rates of exchange |
| Other Information |
| Dividends |
| On 13 February 2025, the Board declared an interim dividend of 240.24p per ordinary share of 25p, for the year ended 31 December 2024, payable in four equal quarterly instalments of 60.06p per ordinary share in May 2025, August 2025, November 2025 and February 2026. The May 2025 quarterly dividend was paid to shareholders on the UK main register and South Africa branch register on 7 May 2025 and to holders of American Depositary Shares (ADSs) on 12 May 2025. |
| The key dividend dates set out in the announcement published on 13 February 2025 relating to the three remaining quarterly dividend payments remain unchanged. |
| SHORT-FORM ANNOUNCEMENT |
| This short-form announcement is the responsibility of the Directors of the Company. It is only a summary of the information contained in the full Half-Year Report to 30 June 2025 (the “Results Announcement”) and does not contain complete details. Any investment decisions should be based on consideration of the full Results Announcement available via the JSE at https://senspdf.jse.co.za/documents/2025/JSE/ISSE/BTI/BATHY25.pdf and on the Company’s website at www.bat.com. Copies of the full Results Announcement may also be obtained during normal business hours from the Company’s registered office and the Company’s representative office in South Africa. Contact details are set out below. |
| Corporate information |
| British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange, New York Stock Exchange and the JSE Limited in South Africa. British American Tobacco p.l.c. is incorporated in England and Wales (No. 3407696) and domiciled in the UK. |
| For the full document, click the link below |
| British American Tobacco p.l.c. |
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