Full Year 2025 British American Tobacco plc Earnings Call Transcript
Key Points
- British American Tobacco PLC (BTI) added 4.7 million smokeless consumers, reaching a total of 34.1 million, marking the strongest growth acceleration to date.
- The company delivered 2025 group results at the top end of guidance, driven by resilient performance in combustibles and excellent results from Vio across all regions.
- New categories contributed significantly, with a 77% increase at constant rates, highlighting the success of targeted investments.
- A 2% increase in dividends and an increase in share buyback to 1.3 billion pounds for 2026 demonstrate strong cash returns for shareholders.
- The company achieved a return to revenue and profit growth in the US for the first time since 2022, driven by stronger combustible performance and growth in vapor and modern oral products.
- Vapor revenue declined by nearly 9%, primarily due to continued illicit pressures in the US and Canada.
- Fiscal and regulatory headwinds in Bangladesh and Australia negatively impacted total group revenue by around 1% and group adjusted profit from operations by around 2%.
- The heated products category faced heightened competitive activity, particularly in South Korea and Japan, affecting performance.
- The company faces challenges in stabilizing performance in the APA region, with ongoing fiscal and regulatory headwinds.
- The US vapor market remains impacted by illicit products, with an estimated 70% of the industry value still illicit, posing challenges for legal market growth.
Good morning everyone. I'm delighted to welcome you to our full year 2025 results presentation. With me this morning, Javed Iqbal, interim CFO, and Victoria Buxton, Group head of investor relations.
I will begin with our transformation highlights.
Javed will then take you through our financial results in more detail.
Finally, I will return to talk more about our performance outlook and why we are confident in the pathway ahead given the clear momentum we are driving.
We will then take your questions.
With that, I would like to draw your attention to the disclaimers on slides 2.
Entry.
So let's begin by looking at the positive transformation momentum we are driving.
Starting with some key highlights, we added 4.7 million smokeless consumers, bringing our total to 34.1 million, mainly driven by our continued strong performance in modern oro.
This marks our strongest growth acceleration to date and positions us well for 2026.
We delivered 2025 group results at the top end of guidance driven by resilient delivery
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