Half Year 2025 British American Tobacco plc Earnings Call Transcript
Key Points
- British American Tobacco PLC (BTI) delivered group results slightly ahead of expectations, with smokeless products now accounting for 18.2% of group revenue.
- The company added 1.4 million smokeless consumers, reaching a total of 30.5 million, driven by success in modern oral products.
- There was a notable return to revenue and profit growth in the US market for the first time since 2022, driven by combustibles and modern oral products.
- The company increased its 2025 share buyback by GBP200 million to GBP1.1 billion, demonstrating strong cash returns to shareholders.
- Modern Oral products in AME showed significant growth, with consumer numbers, volume, and revenue more than tripling over the last four years.
- The vapor segment faced a 13% decline, mainly due to illicit trade in the US and Canada.
- Fiscal and regulatory headwinds in Bangladesh and Australia negatively impacted performance, with total revenue down 4.8% in APMEA.
- The company faced challenges in Canada due to regulations banning all flavors, leading to a market inundated with illegal products.
- The US vapor market continues to struggle with illicit single-use products, impacting legal market growth.
- The company anticipates a 1% to 1.5% transactional FX headwind, affecting financial performance.
Good morning, everyone. I'm delighted to welcome you to our 2025 interim results presentation. With me this morning is Soraya Benchikh, CFO; and Victoria Buxton, Group Head of Investor Relations.
I will begin with our transformation highlights and the progress we have made against our 2025 priorities. Soraya will then take you through our financial results in more detail, before I return to talk more about our performance outlook and why we are confident in the pathway ahead.
We will then take your questions. With that, I would like to draw your attention to the disclaimers on slides.
Entry. Let's begin by looking at the positive transformation momentum we are driving. Starting with some highlights. We have delivered group results slightly ahead of expectations, which Soraya will talk about in more detail. Smokeless now accounts for 18.2% of group revenue, up 70 base points versus last year, and we added 1.4 million smokeless consumers, achieved 30.5 million, mainly driven by our
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