British American Tobacco Adds 4.7M Smokeless Users; UBS Targets £52, RBC Sees £36
British American Tobacco added 4.7 million smokeless consumers in FY2025, reaching 34.1 million users and boosting smokeless revenue to 18.2% of total. On Feb 24, UBS reiterated a Buy at £52 while RBC held a Sell at £36, and FY2026 guidance was confirmed at 3-5% revenue and 4-6% profit growth.
1. Ratings Divergence
On Feb 24, UBS reiterated a Buy rating on British American Tobacco with a £52 target, while RBC maintained a Sell at £36, reflecting mixed analyst sentiment on valuation and growth prospects.
2. FY2026 Guidance Reaffirmed
The company reaffirmed its fiscal 2026 guidance, targeting 3-5% revenue growth and 4-6% adjusted profit expansion, underscoring management’s confidence in margin improvement and market demand.
3. Smokeless Consumer Expansion
British American Tobacco added 4.7 million consumers to smokeless brands in fiscal 2025, raising the total to 34.1 million users and lifting smokeless revenue share by 70 basis points to 18.2% of overall group sales.
4. FY2025 Revenue Performance
Group revenue declined 1.0% to £25,610 million, impacted by a 3.1% currency headwind, but achieved 2.1% growth at constant exchange rates, driven by combustible product performance in the US and Americas/Middle East and Velo Plus expansion.