Description
British American Tobacco Faces Vapour Pressure Despite 7% New Categories Growth
British American Tobacco delivered full year 2025 results at the top end of guidance, reflecting a combination of resilience in combustibles, accelerating traction in smokeless products, and continued cost discipline, while also highlighting uneven regional performance and regulatory headwinds that shape the near-term outlook. The company added 4.7 million smokeless consumers during the year, taking the total to 34.1 million, driven primarily by strong momentum in Modern Oral. New Categories revenue grew 7% at constant currency, supported by a 48% increase in Modern Oral, while Vapour declined due to persistent illicit trade pressures in the U.S. and Canada. Heated products delivered modest growth, resulting in a mixed category profile, though overall category contribution increased meaningfully to GBP 442 million, reflecting scale benefits and more targeted investment. Combustibles continued to play a central role in funding the transformation.
