BAT H1 2025 Trading Update: Velo Volume Share Hits 29.7%, Vuse Revenue Falls 15%, glo Hilo Set for Broader Expansion

Jun.03
BAT H1 2025 Trading Update: Velo Volume Share Hits 29.7%, Vuse Revenue Falls 15%, glo Hilo Set for Broader Expansion
BAT’s H1 2025 revenue slightly beat expectations, with full-year growth forecast at 1–2%. Velo grew to 29.7% share in key markets; U.S. revenue surged. Glo Hilo doubled conversion in Serbia, set for wider rollout. Vuse revenue down ~15% amid illicit competition, but Vuse Ultra launch may aid H2 recovery.

Key Points:

 

·British American Tobacco (BAT) has released its trading update for the first half of 2025, with revenue slightly higher than expected. It is projected that full-year revenue will increase by 1-2% and adjusted operating profit will increase by 1.5%-2.5%.

 

·The United States is expected to see a recovery in revenue and profit growth in the first half of the year and throughout the 2025 financial year, driven by increased deliveries of combustible cigarettes and strong performance from Velo Plus. 

 

·Velo has achieved strong global growth in the rapidly expanding modern oral category. 

 

·glo Hilo has been deployed in key markets to accelerate revenue growth in the new category in the second half of the year. 

 


 

On June 3, 2025, British American Tobacco (BAT) announced on its official website that its performance for the 2025 financial year is progressing steadily, with revenue in the first half of the year surpassing that of the same period in 2024. The company currently expects revenue to increase by 1-2% and adjusted operating profit to increase by 1.5%-2.5% for the 2025 financial year, based on fixed exchange rates.

 

BAT's announcement indicates that performance in 2025 is expected to be stronger in the second half of the year, primarily due to the introduction of innovative new product categories in key markets starting in the mid-year, particularly with the "Strong global growth from Velo in Modern Oral, the fastest growing New Category segment." At the same time, the promotion of the new generation of heated tobacco product, glo Hilo, in the Serbian market has prepared for its expansion in other core markets in the second half of the year.

 

 

The main highlights are summarized as follows:

 

The US cigarette market is showing signs of recovery: 

·With revenue and profit growth expected in the first half and full year of the 2025 fiscal year. 

·BAT attributes this to strengthening its combustible tobacco products business (although overall industry sales have decreased by about 9%, BAT has stabilized its total market share and value share). 

·The US market share is growing, driven primarily by the cigarette brands Natural American Spirit and Lucky Strike.

 

Modern oral product Velo continues to show strong growth: 

·In key markets, the market share of oral products has increased by 270 basis points, reaching 14.3%, while the market share of modern oral products has increased by 350 basis points, reaching 29.7%; 

·Driven by industry growth and market share improvement, revenue has grown strongly in double digits; 

·Propelled by Velo Plus, the US market has achieved good performance, with strong trial and retention rates driving the overall market share of modern oral products to 11.9%, and revenue achieving triple-digit growth.

 

Heating tobacco product glo is expected to see accelerated revenue growth in the second half of the year: 

·Market share has decreased by 90 basis points in major markets, mainly due to intense competition in Japan and the continued elimination of the traditional super-slims platform; 

·Sales share in AME (Asia Middle East Europe) has decreased by 10 basis points, with shares in Poland, the Czech Republic, and Spain continuing to grow, Italy's share remaining stable but offset by competition in Germany and Romania; 

·Conversion rate in Serbia doubled after the launch of Glo Hilo;

·It is expected that revenue in the first half of the year will show low single-digit growth, with accelerated growth in the second half, thanks to the phased promotion of Glo Hilo in major markets.

 

E-cigarette Vuse is leading in global market share: 

·Global market value share remains steady, continuing to maintain a leading position globally in tracking channels; 

·US value stocks remain steady, AME +10 basis points, driven by +40 basis points in Europe; 

·It is expected that revenue in the first half of the year will decrease by about 15%, mainly due to the impact of the illegal e-cigarette market in the US and Canada; 

·Benefiting from the phased introduction of the new high-end e-cigarette product Vuse Ultra, as well as continued targeted resource allocation, revenue performance in the second half of the year continues to improve.

 

Chief Executive Officer Tadeu Marroco commented:

 

"Our first half revenue performance slightly exceeded previous guidance, and we are currently forecasting a 1-2% increase in annual revenue, supporting adjusted operating profit growth of 1.5-2.5%. 2025 is a crucial deployment year, as previously emphasized, with our performance focusing on the second half driven by the promotion of new product category innovations in key markets starting in the middle of the year."

 

We welcome news tips, article submissions, interview requests, or comments on this piece.

Please contact us at info@2firsts.com, or reach out to Alan Zhao, CEO of 2Firsts, on LinkedIn


Notice

1.  This article is intended solely for professional research purposes related to industry, technology, and policy. Any references to brands or products are made purely for objective description and do not constitute any form of endorsement, recommendation, or promotion by 2Firsts.

2.  The use of nicotine-containing products — including, but not limited to, cigarettes, e-cigarettes, nicotine pouchand heated tobacco products — carries significant health risks. Users are responsible for complying with all applicable laws and regulations in their respective jurisdictions.

3.  This article is not intended to serve as the basis for any investment decisions or financial advice. 2Firsts assumes no direct or indirect liability for any inaccuracies or errors in the content.

4.  Access to this article is strictly prohibited for individuals below the legal age in their jurisdiction.

 

Copyright

 

This article is either an original work created by 2Firsts or a reproduction from third-party sources with proper attribution. All copyrights and usage rights belong to 2Firsts or the original content provider. Unauthorized reproduction, distribution, or any other form of unauthorized use by any individual or organization is strictly prohibited. Violators will be held legally accountable.

For copyright-related inquiries, please contact: info@2firsts.com

 

AI Assistance Disclaimer

 

This article may have been enhanced using AI tools to improve translation and editorial efficiency. However, due to technical limitations, inaccuracies may occur. Readers are encouraged to refer to the cited sources for the most accurate information.

We welcome any corrections or feedback. Please contact us at: info@2firsts.com

EU Plans to Include Tobacco Tax in Long-Term Budget Revenue, Sparking Potential Member State Opposition
EU Plans to Include Tobacco Tax in Long-Term Budget Revenue, Sparking Potential Member State Opposition
The European Commission is considering making tobacco taxes a new revenue source for the next long-term EU budget, according to a German government document. The proposal, still at an exploratory stage, could face opposition from the tobacco industry and requires unanimous approval from member states.
Jul.10 by 2FIRSTS.ai
South Korea Report: Heated Tobacco Sales Soar 2,500-Fold Globally Over a Decade, Prompting Urgent Call for Stricter Regulations
South Korea Report: Heated Tobacco Sales Soar 2,500-Fold Globally Over a Decade, Prompting Urgent Call for Stricter Regulations
The Korea Health Promotion Institute has called for stronger regulation of e-cigarettes and other novel tobacco products, emphasizing the need to protect minors from the influence of tobacco advertising.
May.21 by 2FIRSTS.ai
Philip Morris Korea Launches New ILUMA-Compatible HeatStick “Teria Twilight Pearl” on June 26
Philip Morris Korea Launches New ILUMA-Compatible HeatStick “Teria Twilight Pearl” on June 26
PMI Korea has launched a new Teria series heatstick, “Twilight Pearl,” featuring a unique capsule design that allows for a flavor shift, catering to the taste preferences of adult smokers.
Jun.27 by 2FIRSTS.ai
STMA Launches Special Inspection: Shenzhen Vape Companies Face Major License Renewal Test
STMA Launches Special Inspection: Shenzhen Vape Companies Face Major License Renewal Test
Shenzhen office of the State Tobacco Monopoly Administration (STMA) announced the launch of a month-long special inspection targeting local vape companies.
Jun.12
Malaysia's Perak State Plans to Implement E-Cigarette Ban in October, Health Department Accelerates Drafting of Policy Document
Malaysia's Perak State Plans to Implement E-Cigarette Ban in October, Health Department Accelerates Drafting of Policy Document
Malaysia's Perak state government plans to enforce a statewide ban on e-cigarettes in October to improve public health.
Jun.23 by 2FIRSTS.ai
Philippines Considers Higher Taxes on E-Cigarettes to Curb Youth Usage
Philippines Considers Higher Taxes on E-Cigarettes to Curb Youth Usage
The Philippines may raise e-cigarette taxes to curb teenage use, which has hit 40%. The Senate is debating a tax reform, stressing the need for strict enforcement against illegal trade. A biennial tax adjustment plan is proposed to boost government revenue.
May.22 by 2FIRSTS.ai