BAT FY2025 Results: New Categories Contribution Expands as Smokeless Share Reaches 18.2%

Feb.12
BAT FY2025 Results: New Categories Contribution Expands as Smokeless Share Reaches 18.2%
British American Tobacco reported FY2025 revenue of £25.61 billion, down 1.0% on a reported basis but up 2.1% at constant currency. New Categories revenue rose 5.5%, with category contribution increasing 77%. Smokeless products accounted for 18.2% of group revenue.

Key Points

 

  • Revenue: £25,610m (≈ USD 33.78bn)
  • Reported change: -1.0%
  • Constant currency growth: +2.1%
  • Operating Profit: £9,997m (≈ USD 13.18bn)
  • Adjusted Operating Profit: £11,572m
  • Diluted EPS: 349.1p
  • Dividend per Share: 245.04p (+2.0%)
  • New Categories Revenue: £3,621m (≈ USD 4.78bn)
  • New Categories Category Contribution: £427m
  • Smokeless Revenue Share: 18.2%
  • Smokeless Consumers: 34.1 million

 

USD conversions are based on the FY2025 average exchange rate disclosed by the company (1 GBP = 1.319 USD).

 


 

2Firsts, February 12, 2026

 

British American Tobacco (BAT) on Thursday afternoon reported full-year 2025 revenue of £25.61 billion, equivalent to approximately USD 33.78 billion based on the company’s disclosed 2025 average exchange rate of 1 GBP = 1.319 USD. Revenue declined 1.0% on a reported basis but increased 2.1% at constant exchange rates.

 

Profit from operations reached £9.997 billion (approximately USD 13.18 billion). The reported increase reflects the prior-year impairment base effect. Adjusted operating profit rose modestly on a constant currency basis. Adjusted diluted earnings per share increased 0.7% at constant rates, while dividend per share rose 2.0% to 245.04 pence.

 

New Categories—comprising vapour, heated products and modern oral—generated £3.62 billion (approximately USD 4.78 billion) in revenue, up 5.5% on a reported basis and 7.0% at constant currency. Category contribution increased 77.1% to £427 million, with margin expanding to 11.8%.

 

Modern Oral revenue reached £1.17 billion, growing 47.4% on a reported basis. Vapour revenue declined 10.4%, while heated products were broadly stable year-on-year on a reported basis and increased slightly at constant currency.

 

BAT FY2025 Results: New Categories Contribution Expands as Smokeless Share Reaches 18.2%
Figure 1: BAT presentation showing Velo’s volume share progression in the U.S. modern oral nicotine category. The slide indicates continued share gains following the launch of Velo Plus in November 2024, with the brand reaching the No.2 volume and value share position in the U.S. in Q4 2025. Operational metrics including price index, trial conversion and state-level share are also highlighted. | Source: BAT, Preliminary Results 2025 Presentation, February 12, 2026.

 

Smokeless products accounted for 18.2% of group revenue, an increase of 70 basis points. Smokeless consumers totaled 34.1 million, up 4.7 million year-on-year.

 

Combustibles revenue totaled £20.20 billion, down 2.3% on a reported basis but up 1.0% at constant exchange rates.

 

BAT stated that New Categories returned to double-digit growth in the second half of the year, supported by performance in modern oral and recent premium launches including Vuse Ultra, glo Hilo and Velo Shift.

 

Further coverage and analysis will follow from 2Firsts.

 

Cover image: BAT, Preliminary Results 2025 Presentation, February 12, 2026.


BAT FY2025 Results: New Categories Contribution Expands as Smokeless Share Reaches 18.2%
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
Product | JTI Philippines Expands Nordic Spirit Nicotine Pouch Portfolio With Dark Pop and Red Frost
JTI Philippines has expanded the Nordic Spirit nicotine pouch portfolio in the Philippines with two new variants, Dark Pop and Red Frost. Both products maintain the brand’s tobacco-free nicotine pouch positioning, with Dark Pop featuring a fizzy cola profile with citrus and sweet notes, while Red Frost combines cool mint with sweet red berry flavors. The two variants are now available through Philippine online retail channels.
Aug.18
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
Special Report|AIR H1 Revenue Rises 3.7% as Shisha Volumes Fall 9%, Testing Its Shift Beyond Traditional Hookah
AIR’s first half-year results as a listed company offer a new test of how far a traditional hookah business can transform. H1 2026 revenue rose 3.7%, even as Flavored Shisha Molasses shipments fell 9%, with pricing and mix supporting growth. Traditional shisha still generates almost all revenue, while OOKA, Crown Switch, Greentank and U.S. regulatory spending point to accelerating diversification. The next test is whether those investments can become a second business of meaningful scale and profitability.
Capital Markets
Aug.21
FDA Authorizes JUUL2, Cites Adult Switching Amid Efforts to Speed PMTA Reviews
FDA Authorizes JUUL2, Cites Adult Switching Amid Efforts to Speed PMTA Reviews
The FDA authorized the JUUL2 device and tobacco- and menthol-flavored pods on Aug. 28, bringing the number of authorized e-cigarette products to 48. The agency highlighted complete switching among adult smokers, with six-week switching rates reaching 28.4%–49.3% for the menthol pod. The decision comes as FDA works to speed PMTA reviews, reduce application backlogs and expand authorized e-cigarette and nicotine-pouch products while maintaining enforcement priorities for unauthorized products.
Regulations
Aug.29
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
Philippine Local Governments Urge Marcos to Prioritize Smoke- and Vape-Free Bill
The League of Municipalities of the Philippines (LMP) has urged President Ferdinand Marcos Jr. to prioritize the Smoke- and Vape-Free Bill, seeking a nationwide legal framework for tobacco and vape regulation. Local government leaders said national legislation would help standardize enforcement and strengthen public health measures. The proposal remains at the advocacy stage and has not yet become law.
Jul.29
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
U.S. Appeals Court Says BAT Must Face Class Action Over Cigarette Labels
A U.S. appeals court ruled that British American Tobacco (BAT) must continue facing a consumer class action lawsuit over cigarette labels. The ruling allows the case to proceed but does not determine that BAT violated the law or is liable for damages. The case highlights ongoing legal risks facing major tobacco companies related to product labeling, consumer disclosures and product liability claims.
Jul.31
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
Product | VAPORESSO Launches PRIX MTL Pod, With NFC Version Linking Interchangeable Panels to On-Screen Animations
VAPORESSO introduced the PRIX MTL pod system in August 2026 in two versions, Filter and NFC. The Filter version allows users to switch between a conventional drip tip and a filter tip, while the NFC version links interchangeable panels to matching on-screen animations. PRIX features a 2,600mAh battery, a 5.5ml pod, a 0.87-inch TFT display and a maximum output of 40W, alongside Dual Mesh Impact Pods capable of operating at two resistance and power configurations. VAPORESSO's French website lists MSRP at $39.99 for the Filter version and $49.90 for the NFC version.
Market
Aug.24 by 2Firsts Perspectives