On December 9, 2025, British American Tobacco (BAT) released an update to its 2025 full-year results pre-disclosure transaction, announcing that the company is on track to achieve its 2025 fiscal year targets, reiterating its 2026 development guidance, and launching a £1.3 billion share buyback program. The report shows that the company's core business remains resilient, new tobacco product categories are experiencing accelerated growth, and cash flow performance is strong, laying a solid foundation for medium- to long-term development.
I. Core Financial Performance: Growth Rate of New Tobacco Products Jumps to Double Digits
In fiscal year 2025, British American Tobacco expects to achieve approximately 2% revenue growth and adjusted operating profit growth, demonstrating robust operational resilience. The New Category performed particularly well, with revenue growth surging to double digits in the second half of the year, driving mid-single-digit growth for the full year, aligning perfectly with the company's "quality growth" strategic path.
II. Regional Market Performance: Strong Performance in the US, Africa, and Middle East; Short-Term Headwinds in Asia-Pacific.
Regionally, market performance exhibited differentiated characteristics. The Americas (especially the US market) became the core engine of growth, benefiting from stable deliveries of traditional cigarettes and the outstanding performance of the nicotine Velo Plus product. Revenue and profits in this region maintained strong growth momentum, with Velo Plus expected to achieve profitability for the full year, rising to second place in both sales volume and value share . The value share of traditional cigarettes in the US market increased by 20 basis points, while the new tobacco sector also saw gradual improvement in Vuse brand sales and revenue due to increased federal and state enforcement of illegal e-cigarette products.
The America, Africa and Middle East (AME) region performed steadily overall, with core markets such as Brazil, Turkey, and Mexico becoming the pillars of the business, and traditional cigarette and new tobacco businesses developing synergistically. However, the Asia Pacific, Middle East and Africa (APMEA) region faced fiscal and regulatory headwinds in Bangladesh and Australia, dragging down the Group's overall revenue growth by approximately 1%, and impacting adjusted operating profit growth by approximately 2%.
III. Category Development Dynamics: New Tobacco Products Accelerate Breakthrough, Multiple Brands Collaborate to Make a Diversified Effort
1. Traditional cigarettes: Solid foundation, resilient value share
Despite a projected 2% decline in global tobacco sales, British American Tobacco (BAT) maintained a stable value share in its core markets, with only a slight decrease in sales volume share of 10 basis points. In the second half of the year, driven by the US market, the Group's traditional cigarette business saw continued improvement in revenue and category profit, providing stable cash flow support for the company.
2. New tobacco products: Multiple categories developing in tandem, releasing growth potential.
As a strategic focus of the company, the new tobacco category covers three major segments: heated tobacco (HP), e-cigarettes (Vapour), and modern oral tobacco. Growth accelerated across the board in the second half of the year, becoming the core driving force for the group's growth.
Velo, a modern oral tobacco brand, performed particularly well, maintaining its leading position in the fastest-growing and relatively low-risk segment of the global new tobacco market. In its core markets, Velo's overall oral tobacco market share increased by 460 basis points to 15.9%, while its modern oral tobacco market share surged by 590 basis points to 31.8%, achieving double-digit revenue growth thanks to industry growth and increased market share. In the US market, Velo Plus performed exceptionally well, with its modern oral tobacco market share increasing by 920 basis points to 15.6% and revenue achieving triple-digit growth, expected to contribute positive profit to the category for the full year.
The heated tobacco brand glo saw its revenue remain largely flat for the year, with its market share in core markets declining by 1.2 percentage points due to intense competition in the Japanese market and the phasing out of traditional ultra-thin products. However, the company has already begun its market strategy for the high-end product glo Hilo, launching it in three key markets in the second half of the year: Japan (September), Poland (October), and Italy (November). The company plans to further expand its promotional reach in 2026, aiming to secure a place in the high-end heated tobacco market.
E-cigarette brand Vuse benefited from the improving trend in the US market, resulting in a revenue rebound in the second half of the year. As a global leader in the e-cigarette industry, Vuse increased its value share in core markets by 10 basis points, with the US market seeing a 70 basis point increase, thanks to strengthened local enforcement. The high-end innovative product Vuse Ultra received positive feedback in its initial launch markets such as Canada, Germany, and France, validating the underutilized value creation potential of "premium e-cigarettes." Despite the impact of illicit products in the US and Canada, resource reallocation, and market exits, Vuse's full-year revenue is still expected to decline by a high single digit, but the decline is significantly narrower than the 13% drop in the first half of the year.
IV. 2026 Strategic Outlook: Clear Growth Path
For 2026, British American Tobacco (BAT) has outlined its medium- to long-term growth projections: 3%-5% revenue growth, 4%-6% adjusted operating profit growth, and 5%-8% adjusted diluted earnings per share growth, with 2026 results expected to fall within the lower end of this range. CEO Tadeu Marroco stated that the group is confident in sustainably achieving these growth targets and will continue to focus on high-profit markets and categories, while deepening its new tobacco business strategy.
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