British American Tobacco Confirms FY2025 Growth Outlook and Announces £1.3 Billion Share Buyback Plan

Date: December 9, 2025
Source: 2FIRSTS International
Original article: https://cn.2firsts.com/news/detail?menu=international&id=16095

British American Tobacco (BAT) confirmed in its latest business update that its FY2025 performance remains on a steady growth trajectory, with both revenue and adjusted operating profit expected to increase by around 2%.
The company also announced that it will implement a £1.3 billion share buyback program in FY2026 and reaffirmed its mid-term growth targets for 2026.

New Category products are expected to achieve double-digit growth in the second half of 2025, driven primarily by strong performance from Velo Plus and Vuse in the United States.

Key Highlights

• FY2025 revenue and adjusted operating profit expected to grow by around 2%.
• New Category business accelerating in H2, with full-year growth expected to reach mid-to-high single digits.
• Strong contribution from the U.S. market:
 – Velo Plus achieved triple-digit revenue growth and is on track for full-year profitability.
 – Vuse sales rebounded following intensified enforcement against illegal e-cigarettes.
• £1.3 billion share buyback program to begin in FY2026.
• Leverage ratio expected to fall to 2.0–2.5x by the end of 2026, supported by strong cash flow and stable dividend policy.

Official Statement

According to the announcement released on December 9, 2025 by British American Tobacco, the group confirmed that its FY2025 performance is “progressing as planned,” reaffirming its mid-term growth targets for 2026 while unveiling a £1.3 billion share buyback initiative.

BAT expects FY2025 revenue and adjusted operating profit to grow by around 2% year-on-year.
New Category revenue saw double-digit growth in the second half, contributing to mid-single-digit growth for the full year.

The U.S. combustible tobacco segment remained steady, while Velo Plus—its nicotine pouch product—delivered strong results and is expected to achieve full-year profitability.

Management Commentary

CEO Tadeu Marroco stated:

“We remain confident in our full-year performance. Momentum in the U.S. is strong — Velo Plus has risen to second place in both volume and value share. The rebound in U.S. Vuse sales is encouraging, and we believe Vuse will benefit further as federal and state enforcement continues to strengthen.”

BAT emphasized that New Category products will continue to serve as a core growth engine.
Velo has shown strong growth across all three major regions and is considered one of the lowest-risk nicotine categories.

Global Strategy & Product Deployment

• glo Hilo continues advancing its premium positioning.
• Vuse Ultra series expanded into Canada, Germany, France, and additional markets.
• BAT remains committed to its “Quality Growth” strategy, prioritizing high-return markets and categories.

Financial Outlook

• FY2025 operating cash flow conversion expected to exceed 95%.
• Capital expenditure remains around £650 million.
• Leverage ratio expected to decline to 2.0–2.5x by the end of 2026.

Image source: BAT