British American Tobacco maintains guidance as US and new-category momentum strengthen

(Sharecast News) - Tobacco giant British American Tobacco said on Tuesday that it was firmly on track to deliver full-year guidance, driven by continued US delivery and new category momentum.

British American Tobacco said revenue growth in its new categories division was accelerating, led by strong performances in its modern oral and vapour units, adding that it now expects to see mid‑teens growth for both the first half and the full year.

The FTSE 100-listed group said its Velo brand continued to deliver "excellent" revenue and category‑contribution growth globally, while its US business was seeing solid revenue and profit expansion across combustibles, modern oral and vapour.

However, BAT also noted that its US performance would likely be weighted toward the first half as it laps a stronger comparator in the second.

In Asia and the Middle East, BAT said trading remained resilient, with momentum expected to build in the second half as it rolls out further new category innovations and targeted commercial actions. BAT also pointed to a stabilising performance in APMEA, with sequential improvement expected in H1.

Looking ahead, BAT reiterated confidence in its mid‑term revenue growth target of 3% to 5% revenue and its adjusted diluted EPS growth target of 5% to 8%, though it still expects FY26 figures to land at the lower end of those ranges.

BAT added that cash generation remained strong and that it was on track to reduce leverage to within 2x to 2.5x by year‑end, supporting its progressive dividend policy and £1.3bn of share buybacks in 2026.

Reporting by Iain Gilbert at Sharecast.com

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