British American Tobacco Reports In-Line First-Half Results with Strong Performance in New Categories
British American Tobacco (BAT) reported first-half results that were in line with expectations, showing a constant-currency revenue increase of 2.9%, adjusted operating profit growth of 3.5%, and an adjusted diluted EPS rise of 7.9%. The company's performance was driven by strong U.S. nicotine products and modern oral offerings like Velo, while the APMEA region remained weak. New categories continued to gain traction for BAT, with smokeless products contributing 19.8% of group revenue and new-category revenue rising 18%, led by a 66% increase in modern oral sales. The company added 4.1 million smokeless consumers over the past year, bringing its total user base to 35 million. Despite maintaining its financial outlook for full-year growth at or near target ranges, BAT acknowledged investment pressures and expanded its Fit2Win savings goal to £700 million by 2028. The company reaffirmed a progressive dividend policy and confirmed the £1.3 billion share buyback in 2026.
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Topics: adjusted profit consumer products financial performance revenue growth