BAT's H1 2025 financial report: Vuse sales down nearly 13%, Velo revenue up over 40%

Key highlights:

• Net income: £12.069 billion, a decrease of 2.2% year-on-year (impacted by exchange rate), with a growth of 1.8% at constant exchange rates. 
• Smoke-free products: accounting for 18.2% of the group's total revenue, modern oral products revenue increased by 40.6%, with a 42.2% growth in sales volume. 
• Earnings per share: 203.6 pence, a growth of 1.6% year-on-year; adjusted earnings per share: 162.1 pence, an increase of 1.7%. 
• Regional performance: 

United States: revenue increased by 3.7%, operating profit increased by 3.2%.

Americas and Europe (AME): revenue increased by 3.5%, operating profit increased by 10.4%.

Asia-Pacific, Middle East, and Africa (APMEA) region： experienced a 4.8% decrease in revenue, attributed to regulatory and fiscal challenges.

• Annual outlook: It is expected that revenue will increase by 1.0%-2.0%, and the stock buyback program will be increased to 1.1 billion pounds.

According to the official website of British American Tobacco (BAT), the company has released its half-year financial report for the period ending June 30, 2025. The report shows that the company's performance in the first half of the year slightly exceeded expectations due to a recovery in the U.S. market and strong global growth of the oral nicotine brand Velo. BAT also confirmed its full-year performance guidance.

Core financial performance (first half of 2025)

• Net Revenue: The total revenue for the reporting period was £12.69 billion, a decrease of 2.2% year-on-year. The company stated that this decrease was primarily due to a negative impact of 4.0% from exchange rates. Excluding the impact of exchange rates at constant rates, revenue increased by 1.8% year-on-year. 
• Profit for the period: Net profit attributable to the owners of the parent company was £4.512 billion, an increase of approximately 0.45% year-on-year. 
• Diluted EPS: Diluted earnings per share reported were 203.6 pence, an increase of 1.6% year-on-year. Adjusted diluted earnings per share, after adjustments for constant exchange rates and Canadian business, were 162.1 pence, an increase of 1.7% year-on-year. 

Performance divided by business category (constant exchange rates).

The financial report shows that British American Tobacco's new "smoke-free products" business continues to grow, accounting for 18.2% of the group's total revenue.

New Categories: Total revenue increased by 2.4% to reach £1.689 billion.

Modern Oral - Velo：a modern oral care product, has seen a global increase in revenue of 40.6% and a sales growth of 42.2% in its category.

Market Trend: In the United States, with the full promotion of Velo Plus products, revenue for modern oral products increased by 384% and sales grew by 206%. Its market share in the US oral products market rose from 6.9% in November 2024 to 15.6% in May 2025.

Heated Products - glo

Global performance: revenue increased by 3.1%, while sales volumes grew by 1.6%.

Market dynamics: Growth is mainly driven by markets such as Japan and Kazakhstan. The company stated that with the gradual expansion of the new generation product glo Hilo in key markets in the second half of the year, growth in this product category is expected to accelerate.

E-cigarette (Vapor - Vuse):

Global performance: revenue decreased by 13.0%, while sales volume decreased by 12.9%.

Market News: The financial report indicates that the decline in performance is mainly due to the continued impact of illegal disposable e-cigarette products in the United States and Canada, as well as dynamic changes in markets such as the United Kingdom and France.

Performance divided by region (constant exchange rates)

United States (U.S.): The performance has significantly rebounded, with revenue increasing by 3.7% and adjusted operating profit growing by 3.2%. Americas and Europe (AME): Maintaining strong performance, with revenue increasing by 3.5% and adjusted operating profit (adjusted for Canada) increasing by 10.4%. 

Asia Pacific, Middle East, and Africa (APMEA): Showing weak performance, with a 4.8% decrease in revenue. Mainly affected by regulatory and fiscal challenges in Australia and Bangladesh. 

Full-year outlook and shareholder returns.

British American Tobacco has confirmed that it is steadily progressing towards its full-year 2025 financial performance guidance, with revenue growth expected to be at the upper end of the 1.0%-2.0% range.

The company has announced plans to increase its stock buyback program by £200 million to reach a total of £1.1 billion by 2025, in order to enhance shareholder returns.

The Chief Executive Officer of the company, Tadeu Marroco, stated:

2025 is the year of deployment, and we are steadily progressing towards achieving our annual goals. I am very pleased with our performance in the US market, with revenue and profits showing growth for the first time since 2022.