Shares in British American Tobacco (BATS) dipped 4 per cent this morning after the cigarette maker announced a new buyback programme behind the £1.5bn expected by analysts. The company will buy back £1.3bn in shares, its second such programme in recent months.
The FTSE 100 company also said it expects to achieve its targets for 2025, which include total revenue growth of 2 per cent on a constant currency basis. The board indicated full-year adjusted profit from operations growth should land at 2 per cent.
BATS reported “stronger double-digit revenue growth†in its new categories division over the second half, driven by higher volumes. New categories include its ‘smoke-free’ Velo nicotine pouches and Vuse vape brands.
Meanwhile, its cigarettes unit – which still makes up four-fifths of group revenue – delivered a robust performance, with volumes broadly flat. The board reaffirmed its target of increasing revenue by 3 to 5 per cent for 2026, and boosting adjusted earnings per share growth to between 5 and 8 per cent. EW




