30th Jul 2026 10:05
(Alliance News) - British American Tobacco PLC reported on Thursday its interim profit fell as it grappled with cost pressures, and indicated it had started its share buyback.
The London-based cigarette and nicotine product maker saw its pretax profit declined 27% to GBP4.05 billion for six months that ended June 30 from GBP5.57 billion a year earlier.
Its so-called "other operating expenses" rose 26% to GBP3.05 billion from GBP2.41 billion, wile employee benefit costs were up 13% to GBP1.65 billion from GBP1.46 billion. Depreciation, amortisation and impairment costs were GBP1.36 billion, up 14% from GBP1.19 billion.
Revenue was 1.4% higher at GBP12.24 billion from GBP12.07 billion, and was up 2.9% at constant constant foreign exchange, driven by US.
New Categories revenue roe 18%, 2, driven by another strong performance from modern oral globally and a return to double-digit growth in US.
BAT said it had delivered a "robust" performance in combustibles, with revenue up 2.1, driven by the US and Americas & Europe, more than offsetting a slower than expected recovery in Asia-Pacific, Middle East & Africa.
The Dunhill and Kent maker said it had started its GBP1.3 billion share buyback from Thursday to October 12. It announced this new repurchase plan late last month.
Basic earnings per share fell 29% to 146.1 pence from 204.6p, while diluted EPS declined by the same percentage margin to 145.3p from 203.6p. But adjusted diluted EPS growth was 7.9%.
"Our first-half performance is in line with expectations," BAT Chief Executive Officer Tadeu Marroco said, adding: "We are building momentum as we transform and I am confident that we are firmly on track to deliver our full-year 2026 guidance."
BAT confirmed 2026 guidance at lower end of medium-term ranges, with revenue expected to rise by between 3% and 5%, with mid-teens New Category revenue growth. Adjusted profit from operations is seen rising by between 4% and 6%.
Adjusted diluted EPS growth is estimated to be middle of 5% to 8% range for 2026.
Shares in BAT were down 0.6% at 4,710.00p on Wednesday morning in London. In Johannesburg, they were down 1.5% at ZAR1,040.13.
By Artwell Dlamini, Alliance News senior reporter South Africa
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