BAT today (9 December) released its 2025 full-year pre-close trading update, forecasting around 2% growth in both revenue and adjusted operating profit for FY25. The company said New Category revenues are expected to accelerate to double-digit growth in H2, delivering mid-single-digit growth for the full year.

The U.S. is driving performance, where stronger combustibles results and momentum behind Velo Plus are boosting both revenue and profit. BAT said Velo Plus is on track to be profitable for the full year. Early federal and state enforcement action against illicit vapor products has also helped recent improvements in Vuse volumes and revenues.

New Category growth is being driven primarily by Velo, which BAT describes as the “fastest-growing Modern Oral brand globally,” with strong share gains across priority markets and accelerating performance in the U.S. Glo revenue remains broadly flat amid competitive pressure and platform transitions, although the company is introducing glo Hilo in premium heated tobacco markets. Vuse is showing improving H2 trends—supported by enforcement against illicit products—and the premium Vuse Ultra platform is gaining early traction in Canada, Germany and France despite ongoing headwinds in the U.S. and Canada.

Looking further ahead, BAT reiterated confidence in its mid-term targets from 2026: guiding 3–5% revenue growth, 4–6% adjusted operating profit growth and 5–8% EPS growth, with 2026 likely to sit at the lower end of those ranges. Cash generation remains strong, with operating cash flow conversion expected to exceed 95% and leverage targeted to fall to 2.0–2.5x by end-2026.

Capital returns remain a priority. BAT confirmed progressive dividends and an expanded £1.3bn share buyback program for FY26.

This article was adapted from an original report published on tobaccoreporter.com. All rights belong to the original publisher.