British American Tobacco (LSE:BATS) posted its half-year results for 2025, showing a slight revenue decline driven by adverse currency effects. However, on a constant currency basis, revenue grew thanks to strong performance in the U.S. and the success of its Velo Plus product. The company’s New Categories segment—which includes smokeless products—now represents 18.2% of total revenue and has seen a notable rise in contribution margin. Despite regional challenges, particularly in APMEA, BAT remains on track to meet full-year targets, supported by ongoing innovation and investments in high-margin areas. The company continues to deliver shareholder value through solid cash flow and share buy-back programs.
BAT’s stock benefits from robust cash generation and a committed buyback strategy. While revenue volatility and valuation concerns persist, the firm’s strong dividend yield and financial resilience make it appealing for long-term investors.
About British American Tobacco
British American Tobacco is a global leader in the tobacco sector, producing cigarettes and smokeless products. The company focuses on growing its New Categories business, including modern oral products like Velo Plus, aiming to expand its presence in the U.S. and other key markets.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.
Leave a Reply