British American Tobacco Sees 2.1% Revenue Rise, Adds 4.7M Smokeless Users
British American Tobacco’s 2025 group revenue rose 2.1% and adjusted profit climbed 3.4% on a 48% surge in modern oral product sales and 4.7 million new smokeless consumers, totaling 34.1 million users. Vapor revenue fell about 9%, while cost measures target £2 billion savings by 2030.
1. Earnings Highlights
British American Tobacco reported a 2.1% increase in group revenue and a 3.4% rise in adjusted profit for 2025. The company added 4.7 million smokeless product consumers, bringing the total user base to 34.1 million by year-end.
2. Segment Performance
Modern oral products led New Categories growth with global sales up 48%, and the Velo Plus launch in the US secured the #2 market position within its first year. Vapor revenue declined about 9% due to illicit product prevalence, though enforcement measures in H2 drove initial recovery.
3. Outlook & Savings
For 2026, the company targets 3-5% revenue growth and 4-6% adjusted profit growth, aiming to deliver over £50 billion in free cash flow by 2030. Productivity programs will pursue an additional £2 billion in cost savings by 2030 to fund the shift towards smokeless offerings.