British American Tobacco annual profit surges, unveils new buyback

(Alliance News) - British American Tobacco PLC on Thursday delivered substantially strong annual profit after slashing costs and as new categories continued to make inroads.

The London-based cigarette and nicotine product maker improved its total dividend to 245.04 pence in 2025, up 2.0% from 240.24p in 2024, and launched a GBP1.3 billion new share buyback in 2026.

Pretax profit for 2025 was GBP9.86 billion, multiplied from GBP3.54 billion a year earlier, aided mainly by lower costs. Operating expenses plummeted 55% to GBP5.89 billion from GBP13.09 billion.

But revenue was down 0.9% to GBP25.61 billion from GBP25.87 billion.

New categories revenue growth accelerated to double-digits in the second half of 2025H2, achieving full-year increase of 7.0, however. BAT added 4.7 million consumers to 34.1 million of its smokeless brands. Smokeless products accounted for 18% of the group's total revenue, up 70 basis points, compared to 2024.

"I am pleased with our accelerating momentum through 2025, enabling full-year delivery at the top end of our guidance," BAT Chief Executive Officer Tadeu Marroco said.

BAT said it US business had delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from its commercial actions and enhanced execution.

Velo Plus has delivered excellent results, with triple-digit revenue growth, with Velo reaching the number two position in volume and value share, Marroco said.

Basic earnings per share more than doubled to 351.0p from 136.7p.

Marroco said he remained committed to deliver progressive dividends and sustainable share buybacks.

Looking ahead, BAT predicts 3% to 5% revenue growth in 2026, with low double-digit new category revenue rise. It expects adjusted profit from operations to grow by between 4% and 6%.

Shares in BAT were down 1.5% to 4,377.00 pence on Thursday morning in London. In Johannesburg, they were down 0.7% to ZAR950.80.

By Artwell Dlamini, Alliance News senior reporter South Africa

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