Wrap Text
Half-Year Report for the six months to 30 June 2026
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")
30 July 2026 – Press Release/Interim Results
British American Tobacco p.l.c.
Half-Year Report for the six months to 30 June 2026
H1 in line with expectations; Confident in FY26 guidance
Half-Year Summary
– Smokeless products now 19.8% of Group revenue, up 1.6 ppts vs FY25
– Revenue up 1.4%, up 2.9% at constant FX, driven by the U.S. (up 8.5% led by strong multi-category delivery), and resilience in
AME (up 0.9%), partly offset by a slower than expected recovery in APMEA (down 6.3%)
– New Categories revenue up 18.0%2 and New Categories contribution margin up 3.3 ppts to 13.8%2
– Improved combustibles revenue, up 2.1%2, driven by price/mix (including excise duty drawback in the U.S.)
– Reported profit from operations down 15.8% (with reported operating margin down 7.1 ppts to 34.9%), partly due to a credit
in the prior year related to the Canadian settlement provision
– Adjusted profit from operations1,2,3 up 3.5%, adjusted operating margin1,2,3 up 30 bps at 43.7%
– Reported diluted EPS down 28.6% to 145.3p, with adjusted diluted EPS1,2,3 up 7.9%
– FY26 adjusted diluted EPS1,2,3 now expected to be towards the middle of our 5-8% guidance range
– Share buy-back programme on track for £1.3 billion in 2026
Tadeu Marroco, Chief Executive
"Our H1 performance is in line with expectations. We are building momentum as we transform and I am confident that we are firmly on track to
deliver our full-year 2026 guidance.
New Category revenue growth has accelerated to 18.0%2, driven by another strong performance from Modern Oral globally (up 65.9%2), and a return to
double-digit growth2 in U.S. Vapour. This improving portfolio mix, together with our continued focus on quality growth and disciplined resource allocation in
Heated Products and Vapour, drove an increase in New Category contribution of 54.7%.
We further extended our global category leadership in Modern Oral, now our largest New Category (by revenue), achieving 39.2% volume share in
our top markets4, up 8.4 ppts versus FY25. Revenue grew 65.9%2, driven by the continued excellent performance of Velo Plus in the U.S. and sustained
double-digit growth2 in AME and APMEA.
We delivered a robust performance in combustibles with revenue up 2.1%2, driven by the U.S. and AME, more than offsetting a slower than expected
recovery in APMEA. We continue to drive value from combustibles to fund our transformation, while remaining focused on volume share globally. In
H1 2026, we have actively increased investment in key markets in response to heightened competitive activity, including in the U.S., where our
combustibles volume share has started to stabilise.
In the U.S., the recently published FDA prioritisation guidance for Vapour and Modern Oral, together with other Federal and State enforcement
actions, mean that BAT is well-positioned to benefit from our multi-category nicotine portfolio, leveraging Reynolds' strong execution and extensive
distribution capabilities. In the second half of 2026 we plan to roll out Velo Max nationally, together with a disciplined roll-out of a select range of
adult-focused Vuse flavours.
We expect mid-teens New Categories revenue growth for the full-year 2026, driven by continued global momentum in Modern Oral and further
traction from innovation roll-outs, partly offset by lapping a higher second half comparator in the U.S.
We continue to make good progress towards our year-end target leverage range of 2.0–2.5x while rewarding shareholders through strong cash
returns. I remain committed to delivering sustainable value for our shareholders."
Summary Information
IFRS Non-GAAP
Performance highlights
Reported Adjusted3 Adjusted for Canada5
For six months to 30 June 2026 Current vs 2025 Current vs 2025 Current vs 2025
rates (current) rates (constant) rates (constant)
Cigarette volume share1 -30 bps
Cigarette value share1 -40 bps
Consumers of Smokeless products2 35.0m +0.9m
Revenue (£m) £12,235m +1.4% £12,235m +2.9% £12,235m +2.9%
Revenue from New Categories (£m) £1,928m +16.8% £1,928m +18.0% £1,928m +18.0%
Smokeless revenue as % of total revenue (%)4 19.8% +1.6 ppts
Profit from operations (£m) £4,266m -15.8% £5,426m +2.5% £5,319m +3.5%
Adjusted gross profit growth (%) +1.8% +3.2% +2.5% +3.8%
Category contribution - New Categories (£m) £257m +54.7% £257m +54.7%
Category contribution margin - New Categories (%) 13.3% +3.3 ppts 13.3% +3.3 ppts
Operating margin (%) 34.9% -7.1 ppts 44.4% -20 bps 43.5% +30 bps
Diluted EPS (pence) 145.3p -28.6% 167.7p +5.9% 164.0p +7.9%
Net cash generated from operating activities (£m) £3,402m +47.3%
Free cash pre-dividend (£m) £2,285m +85.2%
Adjusted cash generated from operations (£m) £2,102m +45.4%
Cash conversion (%) 79.7% +34.1 ppts 79.7% +5.6 ppts
Borrowings including lease liabilities (£m) £35,063m -0.4%
Adjusted net debt (£m) £31,969m +6.1%
The use of non-GAAP measures, including adjusting items and constant currencies, are further discussed from page 49Error! Bookmark not defined., with reconciliation from the most comparable IFRS measure provided.
Notes:
1. To better reflect the evolving performance of each category, from 1 January 2026, the Group has decoupled the value share and volume share metrics from a combined Cigarettes and HP view to disclose the
performance of Cigarettes as a distinct category. 2. Internal estimate. 3. See page 27 for discussion on adjusting items. 4. Movement in Smokeless revenue as a percentage of total revenue compared to full year
2025. 5. As adjusted for Canada. The adjustment in respect of Canada is discussed on pages 49 and 50, with the adjustment based upon a percentage (2026: 85%; 2025: 100%) of the net income after taxes earned
from all sources, excluding New Categories, in Canada. There is no adjustment to revenue.
Confirmation of Full-Year 2026 Guidance
– Global cigarette industry volume expected to be down c.3%.
– Lower end of our medium-term guidance ranges:
o 3-5% revenue1 growth, with mid-teens New Category revenue growth1.
o 4-6% adjusted profit from operations growth1,2 - H2 weighted.
o Expected c.1% transactional FX headwind.
–
We expect a translational FX headwind of c.2-3% on adjusted diluted EPS growth2.
–
Adjusted net finance costs1,2 expected to be c.£1.65 billion (prev. £1.75 billion), subject to interest rate volatility.
–
Adjusted diluted EPS growth1,2 now expected to be towards the middle of 5-8% medium-term guidance range.
–
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. The adjustment in respect of Canada is discussed on pages 49 and 50, with the adjustment based upon a percentage (2026: 85%; 2025: 100%) of the net income after taxes earned from
all sources, excluding New Categories, in Canada.
Other Information
Dividends
On 12 February 2026, the Board 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. The May 2026 quarterly dividend was
paid to shareholders on the UK main register and South Africa branch register on 7 May 2026 and to holders of American Depositary Shares (ADSs) on 12 May
2026.
The key dividend dates set out in the announcement published on 12 February 2026 relating to the three remaining quarterly dividend payments remain
unchanged.
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 Half-Year
Report to 30 June 2026 (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/HY26.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.
Corporate information
British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange, New York Stock Exchange and the JSE Limited in South
Africa. British American Tobacco p.l.c. is 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
Primary listing
London Stock Exchange (Share Code: BATS; ISIN: GB0002875804)
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ, UK
tel: 0800 408 0094; +44 370 889 3159
Your account: www.computershare.com/uk/investor/bri
Share dealing: www.computershare.com/dealing/uk
Web-based enquiries: www.investorcentre.co.uk/contactus
Secondary listing
JSE Limited (Share Code: BTI)
Shares are traded in electronic form only and transactions are settled electronically through Strate.
Computershare Investor Services Proprietary Limited
Private Bag X9000, Saxonwold 2132, South Africa
tel: 0861 100 634; +27 11 870 8216
email enquiries: web.queries@computershare.co.za
Sponsor for the purpose of the JSE 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 6712
American Depositary Receipts (ADRs)
NYSE (Symbol: BTI; CUSIP Number: 110448107)
BAT's shares are listed on the NYSE in the form of American Depositary Shares (ADSs) and these are evidenced by American Depositary Receipts (ADRs), each
one of which represents one ordinary share of British American Tobacco p.l.c. Citibank, N.A. is the depositary bank for the sponsored ADR programme.
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 enquiries: citibank@shareholders-online.com
website: www.citi.com/dr
Publications
British American Tobacco Publications
Unit 80, London Industrial Park, Roding Road, London E6 6LS, UK
tel: +44 20 7511 7797
e-mail enquiries: bat@team365.co.uk
If you require publications and are located in South Africa, please 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 (BST) on 30 July 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 - HY26).
UK-Wide: +44 (0) 33 0551 0200 U.S. Local: +1 786 697 3501
UK (toll free): 0808 109 0700 U.S. (toll free): 866 580 3963
SA (toll free): 0 800 980 512
Video: Chief Executive's take on Half-Year 2026 Results: To watch highlights of this year's results, please visit: www.bat.com/highlights-video-hy26
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) certain statements in
the Half-Year Summary and in the Chief Executive statement (both on page 1), including the Group's assessment of combustibles volume share in the U.S. and the Group's expectations
of being well-positioned to benefit from recent regulatory developments in the U.S. and being on track to deliver full-year 2026 guidance; (ii) the statements under Confirmation of Full-
Year 2026 Guidance (page 2); (iii) certain statements in the Group Operating Review (pages 4 to 5), the Regional Review (pages 6 to 8) and the Category Performance Review (pages 9 to
11) sections with respect to the Group's expectations of New Categories performance and a continuing roll-out of innovations (including glo Hilo and glo Hyper Pro+), new products
(including Velo Max and Vuse Ultra) and adult-focused flavours (particularly in the U.S.) in the second half of the financial year ending 31 December 2026; (iv) certain statements in the
Other Financial Information section (pages 12 to 14), including the Group's expectations of being within its narrowed leverage range of 2.0-2.5x adjusted net debt/adjusted EBITDA (as
adjusted for Canada1) by the end of 2026, meeting or exceeding the operating cash conversion guidance of 95%, generating approximately £50 billion of free cash flow before dividends
between 2024 and 2030 (inclusive), its commitment to a progressive dividend based upon 65% of long-term sustainable earnings and second-half weighted cash flow and its continuing
confidence in its ability to access the debt capital markets successfully; (v) certain statements in the Other Information section (pages 14 to 16) regarding the Group's going concern
assessment and the generation of annualised cost efficiencies and cash flow of approximately £700 million by the end of 2028 in addition to the £2 billion of targeted savings between
2026 and 2030; (vi) the statement in the Other Information section (page 15) and in the Notes to the Unaudited Interim Financial Statements section (page 27) referring to one-off costs
of approximately £950 million to be incurred between 2025 and 2027; and (vii) statements in the Notes to the Unaudited Interim Financial Statements section (pages 25 to 38) referring
to the expected gross capital expenditure of £750 million in 2026, the Group's expectation that payments in respect of its estimated share of the future liability under the Approved Plans
will continue for at least 40 years, the Group's target of an average centrally managed bond maturity of at least five years with no more than 20% of centrally managed debt maturing in
a single rolling 12-month period and its medium-target credit rating of Baa1, BBB+ and BBB+ from Moody's, S&P and Fitch, respectively, the Group's expectations and underlying
assumptions with respect to contingent liabilities, its repayment schedule under the Franked investment income litigation order and the payment of dividends.
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" and "Group Principal Risks" in the Group's 2025 Annual Report and Accounts and "Forward looking
statements" and "Item 3.D - Risk factors" in the 2025 Form 20-F. 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 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
the BAT website, www.bat.com.
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.
30 July 2026
Sponsor: Merrill Lynch South Africa (Pty) Ltd t/a BofA Securities
Date: 30-07-2026 08:00:00
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