British American Tobacco FY25 revenue slightly misses estimates

Overview

• Tobacco firm's FY25 revenue slightly missed analyst expectations, down 1% due to currency headwinds

• Adjusted profit from operations rose 2.3%, adjusted diluted EPS up 3.4%

• Company announced £1.3 bln share buy-back for 2026

Outlook

• British American Tobacco expects 2026 revenue growth at lower end of 3-5% range

• Company anticipates 5-8% adjusted diluted EPS growth in 2026

• BAT plans £750 mln capital expenditure in 2026

Result Drivers

• SMOKELESS PRODUCT GROWTH - Added 4.7 mln consumers, now 18.2% of group revenue, with New Categories revenue up 7%

• U.S. PERFORMANCE - Strong growth in combustibles and Velo Plus, despite vapour challenges from illicit products

• REGIONAL CHALLENGES - APMEA impacted by regulatory and fiscal challenges in Australia and Bangladesh

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 4 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the tobacco peer group is "buy"

• Wall Street's median 12-month price target for British American Tobacco plc is GBp4,650.00, about 5.1% above its February 11 closing price of GBp4,426.00

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nRSL6701Sa

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