British American Tobacco (BAT): Can Its Next-Gen Products Catch Up to PMI’s iQOS and Dominate the Future?

British American Tobacco’s latest financial results indicate a mixed performance, with several areas highlighting progress and others presenting challenges. The company’s continued transformation is evident in its refined focus on New Categories, such as Smokeless products, which now account for 17.5% of group revenue—a modest increase. The customer base for Smokeless products expanded by 3.6 million, primarily due to advancements in Modern Oral products. This reflects strategic efforts to drive growth in a sector that offers higher margins and sustainable sales.