BTI's Diluted EPS Rises 1.6% in Half-Year Report

British American Tobacco p.l.c. (BTI) announced its half-year results for the period ended June 30, 2025. The company reported revenue of £12,069 million, a decrease of 2.2% compared to £12,340 million in the same period last year. Net income, or profit attributable to owners of the parent, increased by 0.4% to £4,512 million, up from £4,492 million in the prior year period. Reported diluted EPS for the period was 203.6p, a 1.6% increase from 200.3p reported in the prior period.

Key Business Drivers

Revenue performance was primarily influenced by currency headwinds, as revenue increased by 1.8% at constant exchange rates. This growth was largely driven by a return to growth in the U.S. market, specifically in combustibles and Velo Plus products, and continued strong performance in the Americas and Europe (AME) segment. Conversely, the Asia-Pacific, Middle East, and Africa (APMEA) segment faced declines due to fiscal and regulatory challenges in Bangladesh and Australia.

New Categories revenue remained flat on a reported basis at £1,651 million, but increased by 2.4% at constant exchange rates. This was led by a 40.6% increase in Modern Oral products and a 3.1% increase in Heated Products (HP). However, Vapour product revenue declined by 13.0% due to the impact of illicit products in the U.S. and Canada, as well as evolving market dynamics in the UK and France. Smokeless products now constitute 18.2% of Group revenue, reflecting a 70 basis point increase from the full year 2024.

Management Outlook and Strategic Focus

CEO Tadeu Marroco stated that the H1 performance was slightly ahead of expectations, characterizing 2025 as a "deployment year." The company added 1.4 million consumers to its smokeless brands, bringing the total to 30.5 million. Management expects accelerated performance in New Categories during the second half of 2025, driven by the phasing of innovation launches, including the continued roll-out of Vuse Ultra and glo Hilo.

The company also increased its 2025 share buy-back program by £200 million to £1.1 billion, following a partial monetization of its ITC stake which realized £1.1 billion. Management remains committed to delivering sustainable value for shareholders through strong cash returns and continued financial discipline, aiming to achieve additional cost savings and smart re-investment. The company anticipates a return to its mid-term algorithm in 2026, alongside rewarding shareholders through robust cash returns.