British American Tobacco on Track to Meet 2025 Targets; GBP1.3 Billion Share Buyback Unveiled

05:59 AM EST, 12/09/2025 (MT Newswires) -- British American Tobacco (BATS.L, BTI.JO) remains on track to deliver its guidance for 2025 on the back of "strong" revenue and profit momentum in the US and accelerated growth in its new category segment. The tobacco giant said Tuesday it expects to achieve a group revenue growth of 2% for the full year and a 2% rise in adjusted profit from operations, at constant rates, among other financial targets. Revenue in its new category business is anticipated to see a mid-single-digit growth at constant currency. The company noted that early signs of enforcement action against illicit vapor products in the US were boosting volume and revenue for its vape products, which are expected to benefit from a more stringent level of enforcement over time. In a quick take note following the trading update, analysts at RBC Capital Markets expressed a neutral sentiment on the company. "BAT's pre-close trading, as expected, confirms solid momentum of its Velo Plus and accelerated New Category topline growth in H2. Full-year guidance is narrowed in line with consensus, expecting revenue growth of +2% (from towards the top +1-2%), in line with consensus with profit growth also guided to +2% (previously +1.5-2.5%)," the research firm wrote. "While new categories are resulting in improved volume performance, we are concerned at the margin drag that will result." Looking ahead, the group, whose brands include Dunhill, Lucky Strike and Velo, reaffirmed its outlook for 2026. Revenue and adjusted EPS growth are anticipated to be 3% to 5% and between 5% and 8%, respectively, while performance is forecast to be in the lower end of the group's target range. A new share buyback program worth 1.3 billion pounds sterling was also unveiled for 2026, against the Visible Alpha consensus of 1.4 billion pounds. "While there is more to do, we continue to prioritise investment in our most profitable markets and categories, driving accelerating New Category contribution, in line with our Quality Growth approach. We remain confident in delivering our mid-term algorithm next year," Chief Executive Officer Tadeu Marroco said. "Our strong operating cash conversion is driving increasing financial flexibility as we reduce leverage towards our 2.0-2.5x target range. I remain committed to delivering sustainable shareholder value supported by robust cash returns, progressive dividends and sustainable share buy-backs." British American Tobacco shares were trading nearly 4% lower in London on Tuesday midday.