BAT Expects Around 2% Revenue and Operating Profit Growth in FY25

Key highlights

• Expected FY25 revenue and adjusted operating profit growth of approximately 2%.
• New Category revenue to accelerate to double-digit growth in H2, mid-single digit for full year.
• Strong U.S. performance, with Velo Plus delivering triple-digit growth and on track for full-year profitability.
• Improved Vuse volumes and revenue supported by Federal and State enforcement against illicit Vapour.
• Announced £1.3bn (approx. USD 1.65bn) share buyback for FY26.
• Leverage expected to reduce to 2.0–2.5x by end-2026, maintaining strong cash generation and progressive dividend policy.

2Firsts, December 9, 2025 – According to British American Tobacco (BAT), the company remains on track to deliver its full-year FY25 performance and has reaffirmed its 2026 guidance, alongside announcing a £1.3 billion (approximately USD 1.65 billion, per wise.com exchange rate on December 9, 2025) share buyback for FY26.

BAT expects around 2% growth in both revenue and adjusted profit from operations for FY25. The Group anticipates accelerating New Category revenue to double-digit growth in H2, resulting in mid-single-digit growth for the full year. Strong momentum in the U.S.—led by combustibles and Velo Plus—continues to underpin results, with Velo Plus on track for full-year profitability.

Chief Executive Tadeu Marroco stated: “Full-year delivery remains on track. I am pleased with our strong U.S. momentum—the world’s largest nicotine market. Velo Plus continues to perform exceptionally well, while recent Vuse improvements are encouraging, supported by early enforcement actions tackling illicit Vapour.”

BAT highlighted sustained New Category growth across all regions, with Velo leading the Modern Oral segment—the fastest-growing, lowest-risk category relative to cigarettes. The Group continues to roll out premium heated product glo Hilo and premium vape platform Vuse Ultra in priority markets.

BAT expects operating cash flow conversion to exceed 95% in FY25, with capital expenditure of around £650 million. The company reaffirmed its commitment to progressive dividends, sustainable share buybacks, and reducing leverage to within 2.0–2.5x adjusted net debt/EBITDA by end-2026.

Image source: BAT