British American Tobacco revenue inches higher, reported profit falls

(Sharecast News) - British American Tobacco reported first-half revenue of £12.24bn on Thursday, up 1.4% on a reported basis and 2.9% at constant currencies, as growth in the US and new categories offset weaker performance in Asia-Pacific, Middle East and Africa. New Categories revenue rose 18.0% at constant currencies to £1.93bn, led by a 65.9% increase in modern oral products, while adjusted profit from operations increased 3.5% and adjusted diluted earnings per share rose 7.9%.

Reported operating profit fell 15.8% to £4.27bn, reflecting a prior-year credit linked to the Canadian settlement provision.

The FTSE 100 tobacco group reiterated its full-year guidance for 3% to 5% constant-currency revenue growth and 4% to 6% adjusted operating profit growth, with adjusted diluted EPS now expected towards the middle of its 5% to 8% range.

"Our H1 performance is in line with expectations," said chief executive Tadeu Marroco.

"We are building momentum as we transform and I am confident that we are firmly on track to deliver our full-year 2026 guidance."

BAT also said its £1.3bn share buyback programme remained on track.

At 0945 BST, shares in British American Tobacco were down 1.01% at 4,692p.

Reporting by Josh White for Sharecast.com.

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