UK's BAT H1 revenue rises 1.4% on New Categories growth
BTI•Outlook
- Company expects mid-teens New Categories revenue growth for full-year 2026.
- Company sees FY26 adjusted diluted EPS growth toward middle of 5-8% guidance range.
- Company expects global cigarette industry volume to decline about 3% in 2026.
Overview
- UK tobacco group's H1 revenue rose 1.4%, slightly beating analyst expectations.
- Adjusted diluted EPS for H1 up 7.9% year over year; smokeless products now 19.8% of revenue.
- Company maintains £1.3 bln 2026 share buyback; U.S. growth offsets APMEA declines.
Key details
| Metric | Beat/Miss | Actual | Consensus Estimate |
|---|---|---|---|
| H1 Revenue | Slight Beat* | GBP 12.24 bln | GBP 12.22 bln (4 Analysts) |
| H1 Adjusted EPS | GBP 1.68 | ||
| H1 EPS | GBP 1.45 | ||
| H1 Adjusted EBIT | GBP 5.43 bln | ||
| H1 Operating Margin | 34.90% | ||
| H1 Operating Profit | GBP 4.27 bln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst coverage: the current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and 1 "sell" or "strong sell". The average consensus recommendation for the tobacco peer group is "buy". Wall Street's median 12-month price target for British American Tobacco P.l.c is GBp5,200.00, about 9.7% above its July 29 closing price of GBp4,740.00. The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago.
