31st Jul 2025 08:32
(Alliance News) - British American Tobacco PLC on Thursday said its first-half financial results exceeded its expectations and said it is on track to meet its annual guidance.
The London-based cigarette and nicotine product maker posted pretax profit of GBP5.57 billion for the six months that ended June 30, down 0.5% from GBP5.60 billion a year before.
Revenue was GBP12.07 billion, down 2.2% from GBP12.34 billion, but was up 1.8% at constant currency, driven by a return to growth in the US, BAT said.
Revenue from New Categories was flat at GBP1.65 billion, but was up 2.4% at constant currency.
BAT expects the phased roll-out of "innovations" to drive an accelerated second-half New Category performance. Smokeless products now account for 18% of BAT group total revenue.
Americas and Europe continued to perform strongly, it said, while performance in Asia-Pacific, Middle East and Africa had been hit by fiscal and regulatory challenges in Bangladesh and Australia.
BAT said revenue and profit in the US rose for the first time since 2022. Revenue there rose 1.0% in the first half from a year before and was up 3.7% at constant currency rates.
The maker of Dunhill and Lucky Strike cigarettes said it is committed to dividend growth in sterling terms. It said it had increased its 2025 share buyback programme by GBP200 million to GBP1.1 billion.
Basic earnings per share for the first half was 204.6 pence, up 1.7% from 201.1p.
For 2025, BAT expects full-year revenue growth at the top end of 1.0% to 2.0% guidance range, with mid-single digit New Category revenue increase.
It expects global tobacco industry volume to decline 2% this year.
"Our H1 performance is slightly ahead of expectations," Chief Executive Officer Tadeu Marroco said. "2025 is a deployment yea,r and we are firmly on track to deliver our FY guidance."
BAT shares were up 0.8% to 4,021.00 pence early Thursday in London. In Johannesburg, they were up 1.5% to ZAR959.92.
By Artwell Dlamini, Alliance News senior reporter South Africa
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