Wrap Text
Preliminary results for the year ended 31 December 2025
British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")
12 February 2026
Preliminary results for the year ended 31 December 2025
Momentum Drives Further Confidence in 2026 Delivery
Summary
– Added 4.7 million consumers (to 34.1 million) of our Smokeless brands
– Smokeless products now 18.2% of Group revenue, up 70 bps vs FY24
– Reported revenue down 1.0% (due to currency headwinds), up 2.1% at constant FX, driven by combustibles and Velo
Plus in the U.S. and continued multi-category growth in AME, partly offset by APMEA
– New Categories revenue growth accelerated to double-digits in H2, with FY growth of 7.0%2
– New Categories contribution2 increased by 77.1% to £442 million, driven by our Quality Growth approach
– Improved combustibles revenue and category contribution2,3 driven by the U.S. and AME
– Reported profit from operations up 265% (with reported operating margin up 28.4 ppts to 39.0%), largely due to the
movement in the Canadian settlement provision
– Adjusted profit from operations1,2,3 up 2.3%, adjusted operating margin1,2,3 at 44.0% (flat vs FY24)
– Reported diluted EPS up 157% to 349.1p, with adjusted diluted EPS1, 2,3 up 3.4%
– Confident in sustainably delivering mid-term growth algorithm, 2026 performance expected at the lower end of the
range
– On track to reduce leverage3 to within 2.0-2.5x by end 2026, supported by continued strong cash conversion
– Dividend growth of 2.0% to 245.04p and a £1.3 billion share buy-back in 2026
Tadeu Marroco, Chief Executive
"I am pleased with our accelerating momentum through 2025, enabling full-year delivery at the top end of our guidance. This reinforces our
confidence in sustainably delivering our mid-term algorithm from 2026.
Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions
and enhanced execution. Velo Plus has delivered excellent results with triple-digit revenue growth, with Velo reaching the number 2 position in
volume and value share and achieving category contribution profitability within one year of launch. The recent improvement in Vuse
performance is encouraging, although the Vapour category continues to be impacted by illicit proliferation. Over time, we believe Vuse is well
positioned to benefit from stronger enforcement at the Federal and State level.
In AME, our multi-category portfolio continued to perform strongly, while our performance in APMEA was impacted by fiscal and regulatory
challenges in Bangladesh and Australia.
Our New Categories revenue is accelerating, returning to double-digit growth in H2, driven by strong Velo growth in all regions. We continue
to prioritise accelerating growth in category contribution through investment in our most profitable markets.
Our enhanced R&D capabilities have enabled three premium innovation launches – Vuse Ultra, glo Hilo and Velo Shift, with encouraging early
results and further targeted roll-outs planned in 2026. With this momentum, together with resilient combustibles delivery and further
productivity initiatives, we are confident in sustainably delivering on our financial algorithm of +3-5% revenue2, +4-6% APFO1,2,3 and +5-8%
adjusted diluted EPS1,2,3, with 2026 expected to be at the lower end of the range, as we continue to invest in our transformation.
Our strong cash flow is driving increased financial flexibility and we expect to be within our 2.0-2.5x target leverage range by end 2026.
I remain committed to delivering sustainable shareholder value through robust cash returns, with progressive dividends and sustainable
share buy-backs, including £1.3 billion programme for 2026."
Summary Information
Performance highlights Reported Adjusted3 Adjusted3 for Canada4
For year ended 31 December 2025 Current vs 2024 Current vs 2024 Current vs 2024
rates (current) rates (constant) rates (constant)
Cigarette and HP volume share1 -40 bps
Cigarette and HP value share1 -10 bps
Consumers of Smokeless products2 34.1m +4.7m
Revenue (£m) £25,610m -1.0% £25,610m +2.1% £25,610m +2.1%
Revenue from New Categories (£m) £3,621m +5.5% £3,621m +7.0% £3,621m +7.0%
Smokeless revenue as a % of total revenue (%) 18.2% +70 bps
Profit from operations (£m) £9,997m +265% £11,572m +0.4% £11,279m +2.3%
Adjusted gross profit growth (%) +2.1% +3.4%
Category contribution - New Categories (£m) £427m +77.1% £427m +77.1%
Category contribution margin - New Categories (%) 11.8% 4.7 ppts 11.8% 4.7 ppts
Operating margin (%) 39.0% +28.4 ppts 45.2% -80 bps 44.0% flat
Diluted earnings per share (pence) 349.1p +157% 352.1p +0.7% 340.5p +3.4%
Net cashgeneratedfrom operatingactivities (£m) £6,342m -37.4%
Free cash (before payment of dividend) (£m) £4,048m -48.8%
Adjusted cash generated from operations (£m)5 £6,882m -5.5%
Cash conversion (%) +63% -307 ppts +100% -50 bps
Borrowings including lease liabilities (£m) £35,070m -5.1%
Adjusted net debt to adjusted EBITDA ratio 2.48x +0.05x 2.55x -0.20x
Dividend per share (pence) 245.04 +2.0%
The use of non-GAAP measures, including adjusting items and constant currencies, are further discussed from page 49, with reconciliations from the most comparable IFRS measure provided.
Notes:
1. To better reflect the evolving performance of each category, from 1 January 2026 the Group will decouple the value share and volume share metrics from a combined Cigarettes and HP view to
disclose Cigarettes and HP performance separately. 2. Internal estimate. See page 43. 3. See page 26 for a discussion on adjusting items. 4. As adjusted for Canada excludes the performance of the
Canadian business (excluding New Categories) given the requirement to use the profits earned to settle the litigation liability - see page 17. There is no adjustment to revenue. 5. 2025 was negatively
impacted by deferral of tax in the U.S. from 2024 of £678 million, the benefit of which was excluded in the 2024 comparator. Excluding the deferral from 2025, adjusted cash generated from
operations would have been £7,560 million, or £7,840 million at constant rates of exchange in 2025 compared to £7,554 million in 2024.
2026 Outlook
– Global cigarette industry volume expected to be down c.2%.
– Lower end of our medium-term guidance ranges:
– 3-5% revenue1 growth, with low double-digit New Category revenue growth1.
– 4-6% adjusted profit from operations growth1,2 - H2 weighted.
– Expected c.1% transactional FX headwind.
– 5-8% adjusted diluted EPS growth1,2 growth.
– We expect a translational FX headwind of c.3% on adjusted diluted EPS growth2.
– Net finance costs1,2 expected to be c.£1.8 billion, subject to interest rate volatility.
– Gross capital expenditure in 2026 of approximately £750 million.
– Operating cash flow conversion that exceeds 95%.
– Leverage within our 2.0-2.5x adjusted net debt/adjusted EBITDA2 corridor by year end.
– Commitment to dividend growth in sterling terms and £1.3 billion share buy-back.
1. At constant rates of exchange. 2. As adjusted for Canada.
Other corporate information
Quarterly dividends for the Year Ended 31 December 2025
The Board has declared an interim dividend of 245.04p per ordinary share of 25p for the year ended 31 December 2025, payable in four
equal quarterly instalments of 61.26p per ordinary share in May 2026, August 2026, November 2026 and February 2027. This represents an
increase of 2.0% on 2024 (2024: 240.24p per share), and a pay-out ratio, on 2025 adjusted diluted earnings per share, of 69.6%. On an
adjusted for Canada basis, this is a pay-out ratio of 72.0% in 2025 (2024: 70.4%).
Please refer to page 57 for a reconciliation of diluted earnings per share to adjusted earnings per share, including as adjusted for Canada.
South Africa Branch register
In accordance with the JSE Limited (JSE) Listing Requirements, the finalisation information relating to shareholders registered on the South
Africa branch register (comprising the amount of the dividend in South African rand, the exchange rate and the associated conversion date)
will be published on the dates stated below, together with South Africa dividends tax information.
The quarterly dividends are regarded as 'foreign dividends' for the purposes of the South Africa Dividends Tax. For the purposes of South
Africa Dividends Tax reporting, the source of income for the payment of the quarterly dividends is the United Kingdom.
Key dividend dates
In compliance with the requirements of the London Stock Exchange (LSE), Strate (the electronic settlement and custody system used by the
JSE) and the NYSE, the following are the salient dates for the quarterly dividends payments. All dates are 2026 unless otherwise stated.
Event Payment No. 1 Payment No. 2 Payment No. 3 Payment No. 4
Preliminary announcement (includes declaration data required for
JSE purposes) 12 February
Publication of finalisation information (JSE) 17 March 30 June 21 September 14 December
No removal requests permitted (in either direction) between the UK 17 March– 30 June– 21 September– 14 December– 29
main register and the South Africa branch register 27 March 10 July 2 October December
Last Day to Trade (LDT) cum-dividend (JSE) 24 March 07 July 29 September 23 December
Shares commence trading ex-dividend (JSE) 25 March 08 July 30 September 24 December
No transfers permitted between the UK main register and the South 25 March– 8 July– 30 September– 24 December– 30
Africa branch register 27 March 10 July 2 October December
No shares may be dematerialised or rematerialised on the South 25 March– 8 July– 30 September– 24 December– 30
Africa branch register 27 March 10 July 2 October December
Shares commence trading ex-dividend (LSE) 26 March 9 July 1 October 24 December
Shares commence trading ex-dividend (NYSE) 27 March 10 July 2 October 29 December
Record date
(JSE, LSE and NYSE) 27 March 10 July 2 October 29 December
Last date for receipt of Dividend Reinvestment Plan (DRIP) elections
(LSE) 15 April 24 July 16 October 13 January 2027
Payment date (LSE and JSE) 7 May 14 August 6 November 3 February 2027
ADS payment date (NYSE) 12 May 19 August 12 November 8 February 2027
Notes:
1. All dates are 2026, unless otherwise stated.
2. The dates set out above may be subject to any changes to public holidays arising and changes or revisions to the LSE, JSE and NYSE timetables. Any confirmed changes to the dates will be announced.
SHORT-FORM ANNOUNCEMENT
This short-form announcement is the responsibility of the Directors of the Company. It is only a summary of the information contained in the
full Preliminary Announcement – Year Ended 31 December 2025 (the "Results Announcement") and does not contain full or complete
details. Any investment decisions should be based on consideration of the full Results Announcement available via the JSE at
https://senspdf.jse.co.za/documents/2026/JSE/ISSE/BTI/BATFY25.pdf and on the Company's website at www.bat.com. Copies of the full
Results Announcement may also be obtained during normal business hours from the Company's registered office and the Company's
representative office in South Africa. Contact details are set out below.
Shareholder Information
Calendar 2026
Event Date1
Wednesday 15 April 2026
Annual General Meeting2
at 11.30am
Half-Year Report Thursday 30 July 2026
1. Indicated dates are subject to change.
2. Details of the venue and business to be proposed at the meeting will be set out in the Notice of Annual General Meeting, which will be made available to all shareholders and published on
www.bat.com.
British American Tobacco p.l.c. is a public limited company incorporated in England and Wales (No. 3407696) and domiciled in the UK.
Registered office
Globe House, 4 Temple Place, London, WC2R 2PG, UK
tel: +44 20 7845 1000
Stock Exchange Listings
The Company's ordinary shares are listed on the London Stock Exchange (the primary listing (share code: BATS; ISIN GB0002875804)), the JSE Limited
(secondary listing (abbreviated name: BATS; trading code: BTI)) and are traded on the New York Stock Exchange (NYSE) in the form of ADSs and are
evidenced by American Depositary Receipts (ADRs) (symbol: BTI; CUSIP number 110448107). Each BAT ADS represents one ordinary share. BAT ADRs
have been listed on the NYSE since 25 July 2017 as a Sponsored Level III ADS programme for which Citibank, N.A. is the depositary (the Depositary)
and transfer agent.
Sponsor for the purpose of the secondary listing
Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
Representative office in South Africa
Waterway House South
No 3 Dock Road, V&A Waterfront, Cape Town 8000, South Africa
PO Box 631, Cape Town 8000, South Africa
tel: +27 21 003 6500
Manage your shareholding
Ordinary shareholder enquiries
United Kingdom Registrar
Computershare Investor Services PLC (Computershare)
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ
tel: 0800 408 0094 (UK only) or +44 370 889 3159 (Overseas)
online: www.investorcentre.co.uk/contactus
South African Registrar
Computershare Investor Services Proprietary Limited
Private Bag X9000, Saxonwold, 2132, South Africa
tel: 0861 100 634; +27 11 870 8216
email: web.queries@computershare.co.za
American Depositary Shares (ADS) enquiries
All enquiries regarding ADS holder accounts and payment of dividends should be addressed to: Citibank Shareholder Services
PO Box 43077, Providence, Rhode Island 02940-3077, USA
tel: +1 888 985 2055 (toll-free) or +1 781 575 4555
email: citibank@shareholders-online.com
website: www.citi.com/dr
Publications
British American Tobacco Publications
Unit 80, London Industrial Park, Roding Road, London E6 6LS
tel: +44 20 7511 7797 email: bat@team365.co.uk
Holders of shares held on the South Africa register can contact the Company's Representative office in South Africa using the contact details
shown above.
Enquiries
For more information, please contact
Investor Relations: Press Office:
Victoria Buxton +44 (0)20 7845 2012 +44 (0)20 7845 2888 | @BATplc
Amy Chamberlain +44 (0)20 7845 1124 media_centre@bat.com
John Harney+44 (0)20 7845 1263
BAT IR TeamIR_Team@bat.com
Webcast and Q&A session:
BAT will hold a live webcast for investors and analysts at 9.30am (GMT) on 12 February 2026, hosted by Tadeu Marroco, Chief Executive, and
Javed Iqbal, Interim Chief Financial Officer. The presentation will be followed by a Q&A session.
The webcast and presentation slides will be available to view on our website at www.bat.com/latestresults.
If you prefer to listen via conference call, please use the following dial-in details (participant passcode: BAT - FY25).
Standard International: +44 (0) 33 0551 0200 SA (toll free): 0 800 980 512
UK (toll free): 0808 109 0700 U.S. (toll free): 866 580 3963
Video: Chief Executive's take on Full-Year 2025 Results: To watch highlights of this year's results, please visit: www.bat.com/highlights-video-fy25
Forward-looking statements and other matters
This announcement contains certain forward-looking statements, including "forward-looking" statements made within the meaning of the
U.S. Private Securities Litigation Reform Act of 1995.
In particular, these forward-looking statements include, among other statements, statements regarding the Group's future financial
performance, planned product launches and future regulatory developments and business objectives (including with respect to sustainability
and other environmental, social and governance matters), as well as: (i) in the heading Momentum Drives Further Confidence in 2026
Delivery, the Summary and the Tadeu Marroco, Chief Executive section (all on page 1); (ii) certain statements in the 2026 Outlook (on page 3);
(iii) certain statements in the Regional Review section (pages 7 to 9) including our belief that Vuse will benefit as the authorities continue with
enforcement initiatives in 2026 in the U.S. and our expectation of a wider roll-out of glo Hilo in the AME region; (iv) certain statements in the
Category Performance Review (pages 10 to 12), including our encouragement by the early performance of Vuse Ultra in certain markets; (v)
certain statements in the Other Financial Information section (pages 13 to 16), including Cash flow; (vi) certain statements in the Sustainability
Performance Update section (page 16); (vii) certain statements in the Other Information section (pages 16 to 19), including Operational and
process review, the Group's expectation to close the sale of its Cuban subsidiary and the Group's expectation to continue as a going concern;
(viii) certain statements in the Notes to the Financial Statements section (pages 27 to 41), including Accounting policies and basis of
preparation, the Group's forecast and assumptions with respect to impairment testing under amortisation and impairment of trademarks
and similar intangibles and impairment of goodwill, the Group's expected capital expenditure, the Group's targeted credit ratings and
Contingent liabilities and financial commitments sections; (ix) certain statements in the Other Information section (pages 42 to 44); and (x)
certain statements related to dividends (page 47).
These statements are often, but not always, made through the use of words or phrases such as "believe," "anticipate," "could," "may,"
"would," "should," "intend," "plan," "potential," "predict," "will," "expect," "estimate," "project," "positioned," "strategy," "outlook," "target,"
"being confident" and similar expressions. These include statements regarding our intentions, beliefs or current expectations concerning,
amongst other things, our results of operations, financial condition, liquidity, prospects, growth, strategies and the economic and business
circumstances occurring from time to time in the countries and markets in which the British American Tobacco Group (the "Group") operates.
All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors. It is believed
that the expectations reflected in this announcement are reasonable, but they may be affected by a wide range of variables that could cause
actual results and performance to differ materially from those currently anticipated. Among the key factors that could cause actual results to
differ materially from those projected in the forward-looking statements are uncertainties related to the following: the impact of increased
competition from illicit trade and illegal products; changes or differences in domestic or international economic or political conditions; the
impact of adverse domestic or international legislation and regulation of tobacco, New Categories and other regulation; the impact of supply
chain disruptions; adverse litigation and external investigations and dispute outcomes and the effect of such outcomes on the Group's
financial condition; the impact of significant increases or structural changes in tobacco, nicotine and New Categories related taxes; the
inability to develop, commercialise and deliver the Group's New Categories strategy; adverse decisions by domestic or international
regulatory bodies, including disputed taxes, interest and penalties; the impact of serious injury, illness or death in the workplace and those
who work with the business; the ability to maintain credit ratings and to fund the business under the current capital structure; translational
and transactional foreign exchange rate exposure; direct and indirect adverse impacts associated with climate change (both physical and
transition); the ability to deliver a viable circular business model in response to global demand, combined with increasing regulatory,
stakeholder and consumer pressure; and the Group's ability to defend against Cyber & Digital actions that result in loss of confidentiality,
availability or integrity of systems and data.
A review of the reasons why actual results and developments may differ materially from the expectations disclosed or implied within
forward-looking statements can be found by referring to the information contained under the headings "Cautionary statement", "Group
Principal Risks" and "Group Risk Factors" in the Group's 2024 Annual Report and the Group's Annual Report on Form 20-F of British American
Tobacco p.l.c. (BAT). Additional information concerning these and other factors can be found in BAT's filings with the U.S. Securities and
Exchange Commission (SEC), including the Group's Annual Report on Form 20-F and Current Reports on Form 6-K, which may be obtained
free of charge at the SEC's website, www.sec.gov and BAT's Annual Reports.
No statement in this announcement is intended to be a profit forecast and no statement in this communication should be interpreted to
mean that earnings per share of BAT for the current or future financial years would necessarily match or exceed the historical published
earnings per share of BAT. Past performance is no guide to future performance and persons needing advice should consult an independent
financial adviser. The forward-looking statements reflect knowledge and information available at the date of preparation of this
announcement and the Group undertakes no obligation to update or revise these forward-looking statements, whether as a result of new
information, future events or otherwise. Readers are cautioned not to place undue reliance on such forward-looking statements.
All financial statements and financial information provided by or with respect to the U.S. or Reynolds American are initially prepared on the
basis of U.S. GAAP and constitute the primary financial statements or financial records of the U.S./Reynolds American. This financial
information is then converted to International Financial Reporting Standards as issued by the IASB and as adopted for use in the UK (IFRS) for
the purpose of consolidation within the results of the Group. To the extent any such financial information provided in this announcement
relates to the U.S. or Reynolds American it is provided as an explanation of, or supplement to, Reynolds American's primary U.S. GAAP based
financial statements and information.
Products sold in the U.S., including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will
be made as to these products without agency clearance.
12 February 2026
Sponsor: Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
Date: 12-02-2026 09:00:00
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