British American Tobacco (BAT) said its strong U.S. combustibles performance and momentum in modern oral nicotine are expected to drive results to the upper range of its 2025 guidance, setting the stage for the company to achieve midterm growth targets starting in 2026, the London-based company announced on Feb. 12.
In an update accompanying its preliminary full-year 2025 results, BAT projected global cigarette volumes to decline by about 2% in 2026, while revenue is expected to grow between 3% and 5%, including low double-digit growth in new categories. The company also forecast adjusted profit from operations to increase by 4% to 6%.
Turning to the United States, CEO Tadeu Marroco said the company’s U.S. business posted solid growth.
“Our U.S. business has delivered strong growth, mainly driven by sustained momentum in combustibles, resulting from our commercial actions and enhanced execution,” Marroco said.
BAT also reported growth in nicotine pouches.
“Velo Plus has delivered excellent results with triple-digit revenue growth, with Velo reaching the No. 2 position in volume and value share and achieving category contribution profitability within one year of launch,” Marroco said.
The company reported that it added 4.7 million non-combustible consumers during the year, bringing its smokeless consumer base to 34.1 million. Smokeless products now account for 18.2% of group revenue, up 70 basis points versus fiscal 2024.
The update comes as tobacco companies continue to shift investment toward smokeless and reduced-risk products as part of their growth strategy.
Turning to vapor, Marroco said that although the category continues to be impacted by illicit proliferation, Vuse is “well positioned” to benefit from stronger enforcement at the federal and state level.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.