Key Takeaways
- BAT Holdings (New Zealand) reported 2025 revenue of NZ$180.7 million, or about US$106.95 million, down from NZ$254 million, or about US$150.33 million, in 2024.
- BAT New Zealand said the results reflect an increase in non-excised illicit tobacco entering New Zealand in recent years.
- A study commissioned by BAT NZ and Imperial Brands found illicit tobacco consumption in 2024 was 27.2%, equivalent to about NZ$600 million, or about US$355.12 million, in lost excise taxes.
- BAT NZ continued to call on the government to establish an illicit tobacco taskforce and increase penalties for illicit tobacco.
- Imperial Tobacco New Zealand also reported lower revenue and profit for its latest financial year.
2Firsts, April 28，2026
According to the report, British American Tobacco New Zealand believes the illicit tobacco trade is responsible for its profits halving and revenue falling sharply between the 2024 and 2025 financial years.
BAT New Zealand’s 2025 revenue fell by nearly 29%
Financial results recently filed with the Companies Office show that BAT Holdings (New Zealand), the parent company of BAT NZ, recorded revenue of NZ$180.7 million, or about US$106.95 million, in the year ended December 2025.
That was down from NZ$254 million, or about US$150.33 million, in the 2024 year, representing an almost 29% decline.
The company said the results reflect rising illicit tobacco
A BAT NZ spokesperson said the results “highlight the increase in non-excised illicit tobacco coming into New Zealand in recent years.”
BAT NZ and fellow tobacco company Imperial Brands commissioned FTI Consulting to examine the 2024 calendar year, finding that the rate of illicit tobacco consumption was 27.2%.
A BAT NZ spokesperson said this represented about NZ$600 million, or about US$355.12 million, in lost excise taxes to the Crown.
The New Zealand Initiative said high excise duties are pushing smokers to the black market
The New Zealand Initiative cited the study’s findings and said high excise duties, equal to about NZ$26.19, or about US$15.50, per pack of 20 cigarettes, were driving smokers to the black market. BAT NZ is a member of the New Zealand Initiative.
BAT continued to call for stronger enforcement against illicit tobacco
The company continued to call on the government to avoid losing more tax revenue by establishing an illicit tobacco taskforce, substantially increasing penalties for illicit tobacco, licensing tobacco retailers and closing stores that openly sell illicit tobacco.
The accounts showed declines in several business indicators
Whatever the reason for lower purchases, whether people quitting, moving to cheaper brands, switching to vapes that do not attract excise tax, or buying through the black market, the Companies Office accounts showed a major drop in BAT NZ’s trade and other payment liabilities and a large decline in inventory.
Finished goods on hand were worth NZ$74.4 million, or about US$44.04 million, compared with NZ$248.5 million, or about US$147.06 million, a year earlier.
Some costs increased, including shared service fees paid to a UK affiliate
At the same time, certain costs increased. Shared service fees paid to UK-based British American Shared Services GSD Limited rose to NZ$11.6 million in 2025 from NZ$3.8 million the year before. The report said BAT may be offshoring some of its administrative and overhead functions.
The company did not respond to detailed questions about its finances
BAT NZ did not respond to specific questions about its finances, including how its sales revenue broke down by product category, how much it paid to its parent company or why those payments continued despite the sharp profit decline.
Dividend payments remained at about NZ$40 million, while tax payments fell
The results filings showed BAT NZ pays a dividend of roughly NZ$40 million, or about US$23.67 million, each year to its UK-domiciled parent company, and that amount did not change between last year and this year despite the profit slump. The company paid NZ$9.6 million, or about US$5.68 million, in tax in New Zealand for the year, down from NZ$17.3 million, or about US$10.24 million, last year.
Imperial Tobacco New Zealand also reported lower results
Imperial Brands, operating as Imperial Tobacco New Zealand Limited, released results to the end of September 2025 in early March. Revenue fell to NZ$511.4 million, or about US$302.74 million, from NZ$545 million, or about US$322.63 million, the year before. Profit fell to NZ$2.5 million, or about US$1.48 million, from NZ$8.2 million, or about US$4.85 million.
The company paid NZ$15.5 million, or about US$9.18 million, to its parent company Imperial Brands Plc and owed NZ$900,000, or about US$0.53 million, in taxes at the date the financials were published.
Traditional smoking is declining in New Zealand while vaping is increasing
According to the latest 2024/25 New Zealand Health Survey, there are an estimated 362,000 current smokers in New Zealand, representing 8.3% of the adult population, a figure that has remained largely unchanged over the past three years. At the same time, there are an estimated 509,000 daily vapers, or 11.7% of adults, and that figure continues to rise.
There are 1,311 specialist vape stores in the country, with one-third located within a five-minute walk of a school. The Public Health Communication Centre said adults in the most deprived neighbourhoods are nearly three times more likely to vape daily than those in the least deprived areas, at 21.1% versus 7.2%.
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