British American Tobacco H1 reported revenues, adjusted operating profits fall
By Iain Gilbert
Date: Thursday 31 Jul 2025
(Sharecast News) - British American Tobacco reported a dip in H1 reported revenues and adjusted operating profits on Thursday, as currency pressures and reduced cigarette volumes weighed on its overall performance.
Revenue fell 1.7% on a reported basis to £13.47bn for the six months ended 30 June, down from £13.71bn a year earlier. On a constant currency basis, however, revenue rose 2.6%, reflecting growth in its new categories segment and pricing across combustibles.
The FTSE 100-listed tobacco giant said adjusted operating profits slipped 4.2% to £5.89bn, while diluted earnings per share declined 5.7% to 163.8p, citing adverse FX movements and continued investment in its transformation strategy as key factors.
New categories revenue climbed 10.4% on a constant currency basis, driven by strong growth in vapour and modern oral products, and BAT said it now expects the segment to break even by 2025, a year ahead of schedule, while cigarette volumes dropped 9.1% globally, with notable declines in the US and South Asia, as consumer pressures and regulatory changes continued to impact demand.
BAT maintained its interim dividend at 235.52p per share and reaffirmed FY guidance for low-single-digit organic revenue growth and mid-single-digit adjusted operating profit growth at constant exchange rates.
"Our H1 performance is slightly ahead of expectations. 2025 is a deployment year and we are firmly on track to deliver our FY guidance," said chief executive Tadeu Marroco. "I am confident that the investments we have made and actions we are taking, will drive a return to our mid-term algorithm in 2026."
As of 0840 BST, BAT shares were up 1.53% at 4,050p.
Reporting by Iain Gilbert at Sharecast.com
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