Description

British American Tobacco’s 4.1 Million New Consumers — Can Modern Oral Reshape The Business?

British American Tobacco plc reported interim results for the first half of 2026 that were broadly in line with management expectations on a constant currency basis. Group revenue increased by 2.9%, supported by strong growth in new categories and multi-category delivery, particularly in the U.S. Adjusted profit from operations grew 3.5%, and adjusted diluted earnings per share rose 7.9%. The company highlighted that smokeless products now accounted for nearly 20% of group revenue, up 160 basis points year-over-year, with the Modern Oral segment driving 66% revenue growth and adding 4.1 million new consumers globally. New categories—comprising Modern Oral, Vapour, and Heated Products—showed mixed performance. Modern Oral recorded robust growth, especially through the Velo brand, which maintains a dominant market position with increased volume and value shares across all regions. Vapour revenue grew modestly by 5.3%, led by the U.S.