BAT eyes £1.3bn share buyback
British American Tobacco is to launch a £1.3 billion ($1.73 billion) share buyback program next year and reaffirmed its financial outlook for 2025, citing accelerating growth in its next-generation product portfolio.
The FTSE 100 group said it remains on track to deliver around 2% organic revenue and adjusted operating profit growth in 2025, as reported by The Wall Street Journal.
BAT expects double-digit revenue expansion in the second half of the year from its new-category division, which includes its Vuse e-cigarette line and Velo nicotine pouches.
The company noted particularly strong momentum in the U.S. market, driven by solid performance in its traditional combustible segment and strong uptake of its Velo Plus nicotine product.
Chief Executive Tadeu Marroco said he was “particularly pleased” with growth in the U.S., calling it the world’s largest nicotine value pool.
BAT said a U.S. crackdown on illicit vapor products has also supported higher Vuse volumes and revenue.
However, it flagged continued regulatory pressures in Australia and Bangladesh, which are weighing on regional sales.
Looking ahead, the company reiterated expectations for midterm revenue growth of 3% to 5% and adjusted operating profit growth of 4% to 6%. For 2026, BAT said it anticipates results toward the lower end of that range.
The newly declared buyback follows a previously disclosed £900 million repurchase plan for 2025, unveiled alongside its 2024 full-year results in February.
