British American Tobacco forecasts modest revenue growth for 2025
The headquarters quarters of British American Tobacco at Temple Place in central London. The group said first half revenue was slightly better than it had anticipated and operating profit margins had improved.
Image: AFP
British American Tobacco (BAT) is likely to generate 1% to 2% revenue growth in its 2025 financial year, as first-half revenue to June 30 was likely to be slightly ahead of previous guidance, CEO Tadeu Marroco said on Tuesday.
He said in a trading statement that the full-year revenue growth would support 1.5% to 2.5% growth in adjusted profit from operations.
The cigarette and non-combustible tobacco product group said their US operations were expected to return to revenue and profit growth in the first half, driven by strengthening combustibles delivery and 'an excellent Velo Plus performance.'
There has also been strong global growth from Velo in Modern Oral, the fastest-growing New Category segment.
The performance in Asia and the Middle East remained strong, led by Brazil, Turkiye, and Romania, but performance in the Asia-Pacific, Middle East, and Africa was impacted by excise and regulatory challenges in Bangladesh and Australia, as previously guided.
In the first half, New Categories revenue growth was expected to be in the low single digits, with the impact of illicit vapour products in the US and Canada partly offsetting 'excellent Velo performance.'
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
New Category product growth was being driven by the deployment of innovations in key markets, and there was a further improvement in the New Category contribution margin, driven by the group's 'Quality Growth' focus.
Cash generation was strong with balanced capital allocation. Leverage was being reduced, and the group remained committed to progressive dividends and sustainable share buy-backs.
'2025 is a deployment year and, as previously highlighted, we expect our performance to be weighted in the second half, mainly driven by the roll-out of New Category innovations in key markets from the middle of the year,' said Marroco.
He said that while the combustibles industry volume remained under pressure, total industry volume and value share had stabilised.
'Excluding the deep discount segment where we are not present, we are gaining share, driven by Natural American Spirit and Lucky Strike,' he said.
He said the vapour category remained impacted by the proliferation of illicit vapour products in the US and Canada, with US legal industry volume down mid-teens year-to-date.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Eyewitness News
2 hours ago
- Eyewitness News
World Bank lifts lending freeze over Uganda anti-LGBTQ law
NAIROBI - The World Bank is lifting a freeze on lending to Uganda it put in place in response to a 2023 law criminalising homosexuality, after taking steps to counter discrimination, it said Wednesday. Uganda's anti-LGBTQ law, one of the most severe in the world, provides for harsh sentences for same-sex relations or "promoting" homosexuality, including the death penalty in some cases. After longtime President Yoweri Museveni signed it into law in May 2023, the World Bank halted all new loans to Uganda, saying projects it financed had to adhere to its non-discriminatory policies. Since then, "the World Bank worked with the government and other stakeholders in the country to introduce, implement and test measures that prevent discrimination in World Bank-funded projects," a spokesman told AFP. "We have now determined the mitigation measures rolled out over the last several months in all ongoing projects in Uganda to be satisfactory," he added. "Consequently, the Bank has prepared new projects in sectors with significant development needs," which will be presented to the World Bank's board, he said. "All new projects have the mitigations measures embedded in them," he added. "The World Bank cannot deliver on its mission to end poverty and boost shared prosperity on a liveable planet unless all people can participate in, and benefit from, the projects we finance." Uganda has lost between $586 million and $2.4 billion a year because of the anti-LGBTQ law, notably because of frozen financing, British charity Open for Business estimated last year.
eNCA
13 hours ago
- eNCA
Nintendo fans stoked for Switch 2 'mega launch'
With shops planning midnight launch parties after a run on pre-orders, Nintendo releases the Switch 2 on Thursday, hoping to score record early sales for a games console. But the Japanese company has its work cut out to match the overall success of the Switch, which became a must-have during the pandemic with hit games such as "Animal Crossing". Featuring a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since it came out in 2017 -- making it the third best-selling console of all time. Serkan Toto from Tokyo consultancy Kantan Games said he "would not be surprised to see Switch 2 breaking sales records in the next weeks and months". In Japan, Nintendo's online store had 2.2 million pre-order applications for the Switch 2 -- an "insane number the industry has never seen before", Toto told AFP. "We are looking at some sort of mega launch, and it will be interesting to see for how long this initial momentum will continue," he added. Challenges for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new device. The Switch 2 costs $449.99 in the United States, more than Switch's launch price of $299.99. Both are hybrid consoles which can connect to a TV or be played on the go. New Switch 2 games such as "Donkey Kong Bananza" and "Mario Kart World" -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles. - Pre-order cancellations - Retailers in the United States, Europe and other major markets are also gearing up for a rush of excited fans, with some stores opening at midnight to welcome them. "For us, this will be a record in terms of first-day sales for a games console," said Charlotte Massicault, director of multimedia and gaming at France's Fnac Darty. Supply pressures have even forced retailers to cancel orders, with Britain's Game saying it is "working hard to reinstate as many affected pre-orders as possible". "It seems that retailers in the US were especially confident in their ability to ship pre-orders and now need to deal with some serious backlash from customers," Toto said. He expects "it will be hard to get a Switch 2 not only at launch but for weeks and months after, possibly through the entire year," as was the case for months with the Switch. Nintendo forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its release. The Switch 2 "is priced relatively high" compared to its predecessor, so it "will not be easy" to keep initial momentum going, the company's president Shuntaro Furukawa said at a financial results briefing in May. - 'Super excited' - The Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer mouse. New functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game streamers. "People were a bit shocked by the price of 'Mario Kart World', the first $80 game that we've ever seen," said Krysta Yang of the Nintendo-focused Kit & Krysta Podcast. But while the company is "going to have to do some work" to convince more casual gamers that it's worth upgrading, Nintendo fans are "super excited", she told AFP. In the United States, Nintendo delayed pre-orders for the Switch 2 by two weeks as it assessed the impact from President Donald Trump's aggressive duties on trading partners around the world. Furukawa said in May that "hardware for North America is mainly produced in Vietnam" where Trump is threatening a hefty so-called "reciprocal" levy of 46 percent. But tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go up, according to Yang. And the stakes are high for Nintendo. While the "Super Mario" maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say. burs-kaf/cms
The Citizen
16 hours ago
- The Citizen
Trump says deal with Xi ‘extremely hard' as steel tariffs double
Donald Trump called Chinese leader Xi Jinping 'extremely hard' to deal with, even as the White House pushes for global trade offers ahead of the July 9 tariff deadline. A worker walks past rolls of steel at a steel market in Hangzhou, in eastern China's Zhejiang province on June 4, 2025. (Photo by AFP) / China OUT / CHINA OUT Donald Trump said on Wednesday that it was 'extremely hard' to reach a deal with Chinese leader Xi Jinping, but the EU touted progress in its own trade talks with Washington even though the US president doubled global metal tariffs. Trump's latest trade moves came as ministers from Organisation for Economic Cooperation and Development (OECD) countries gathered in Paris to discuss the outlook for the world economy in light of a US hardball approach that has rattled world markets. Trump's sweeping tariffs on allies and adversaries have strained ties with trading partners and sparked a flurry of negotiations to avoid the duties. The White House has suggested the president will speak to Xi this week, raising hopes they can soothe tensions and speed up a trade deal between the world's two biggest economies. However, early on Wednesday, Trump appeared to dampen hopes for a quick deal. ALSO READ: NPA 'taken aback' over Moroadi Cholota extradition ruling, hints at appeal 'I like President XI of China, always have, and always will, but he is VERY TOUGH, AND EXTREMELY HARD TO MAKE A DEAL WITH!!!' he posted on his Truth Social platform. Asked about the remarks during a regular press briefing, Chinese foreign ministry spokesman Lin Jian said: 'The Chinese side's principles and stance on developing Sino-US relations are consistent.' China was the main target of Trump's April tariff blitz, hit with levies of 145 percent on its goods and triggering tit-for-tat tariffs of 125 percent on US imports. Both sides agreed to temporarily de-escalate in May, after Trump delayed most sweeping measures on other countries until July 9. His latest remarks came hours after he increased his tariffs on aluminum and steel from 25 percent to 50 percent, raising temperatures with various partners while exempting Britain from the higher levy. ALSO READ: Eight injured in 'flamethrower' attack on Israeli hostage protest in US EU trade commissioner Maros Sefcovic said after talks with US Trade Representative Jamieson Greer on the sidelines of the OECD meeting in Paris that raising the metal tariffs 'doesn't help the negotiations'. The two sides were nonetheless 'making progress' in their negotiations, Sefcovic said at a news conference. Goods from the 27-nation bloc will be hit with 50-percent tariffs on July 9 unless it reaches a deal with Washington. The EU has vowed to retaliate. 'We did very much focus on these negotiations, and I still believe in them,' Sefcovic said, adding that he was optimistic that a 'positive result' could be reached. Steel tariffs The US-EU meeting took place a day after the OECD cut its forecast for global economic growth, blaming Trump's tariff blitz for the downgrade. ALSO READ: Afrikaner 'refugees' continue to arrive in US on commercial flights – reports 'We need to come up with negotiated solutions as quickly as possible, because time is running out,' German economy minister Katherina Reiche warned. French trade minister Laurent Saint-Martin said: 'We have to keep our cool and always show that the introduction of these tariffs is in no one's interest.' After talks between UK Trade Secretary Jonathan Reynolds and Greer on Tuesday, London said that imports from the UK would remain at 25 percent for now. Both sides needed to work out duties and quotas in line with the terms of a recently signed trade pact. 'We're pleased that as a result of our agreement with the US, UK steel will not be subject to these additional tariffs,' a British government spokesperson said. White House wants offers The Group of Seven advanced economies — Britain, Canada, France, Germany, Italy, Japan and the United States — was due to hold separate trade talks on Wednesday. ALSO READ: 'There is no white genocide happening here,' says Trump's top pastor after SA visit Mexico will request an exemption from the higher tariff, Economy Minister Marcelo Ebrard said, arguing that it was unfair because the United States exports more steel to its southern neighbour than it imports. 'It makes no sense to put a tariff on a product in which you have a surplus,' Ebrard said. Mexico is highly vulnerable to Trump's trade wars because 80 percent of its exports go to the United States, its main partner. While some of Trump's most sweeping levies face legal challenges, they have been allowed to remain in place for now as an appeals process takes place. White House press secretary Karoline Leavitt confirmed on Tuesday that the Trump administration sent letters to governments pushing for offers by Wednesday as the July 9 deadline approached. NOW READ: US court blocks tariffs in major setback for Trump – By: © Agence France-Presse
