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British American Tobacco’s 135,000-Store Footprint Is a Power Move That Competitors Can’t Ignore!

British American Tobacco (BAT) exhibited a mixed performance in its recent interim financial results, underscored by both positive growth trends and notable challenges. The company reported group results ahead of initial expectations, with a 1.8% increase in group revenue and an adjusted profit from operations growth of 1.9%. These figures were achieved despite ongoing challenges in some market areas and adjustments, including a reported gain from the partial sale of an ITC investment. Positively, BAT highlighted significant progress in its transformation priorities, particularly within its ‘new categories’ portfolio, which includes smokeless products. Smokeless now represents 18.2% of BAT’s group revenue, a growth driven largely by the success in Modern Oral products. BAT’s focus on these new categories is reflected in an enhanced contribution margin up 280 basis points, showcasing effective cost management and targeted investments in high-value markets.