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29.06.25 00:25:20 A Closer Look At British American Tobacco (Malaysia) Berhad's (KLSE:BAT) Impressive ROE
Many investors are still learning about the various metrics that can be useful when analysing a stock. This article is for those who would like to learn about Return On Equity (ROE). We'll use ROE to examine British American Tobacco (Malaysia) Berhad (KLSE:BAT), by way of a worked example.

Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Simply put, it is used to assess the profitability of a company in relation to its equity capital.

We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.

How To Calculate Return On Equity?

Return on equity can be calculated by using the formula:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for British American Tobacco (Malaysia) Berhad is:

48% = RM176m ÷ RM368m (Based on the trailing twelve months to March 2025).

The 'return' is the income the business earned over the last year. Another way to think of that is that for every MYR1 worth of equity, the company was able to earn MYR0.48 in profit.

View our latest analysis for British American Tobacco (Malaysia) Berhad

Does British American Tobacco (Malaysia) Berhad Have A Good Return On Equity?

By comparing a company's ROE with its industry average, we can get a quick measure of how good it is. The limitation of this approach is that some companies are quite different from others, even within the same industry classification. Pleasingly, British American Tobacco (Malaysia) Berhad has a superior ROE than the average (16%) in the Tobacco industry.KLSE:BAT Return on Equity June 29th 2025

That's what we like to see. However, bear in mind that a high ROE doesn’t necessarily indicate efficient profit generation. Especially when a firm uses high levels of debt to finance its debt which may boost its ROE but the high leverage puts the company at risk. You can see the 3 risks we have identified for British American Tobacco (Malaysia) Berhad by visiting our risks dashboard for free on our platform here.

The Importance Of Debt To Return On Equity

Most companies need money -- from somewhere -- to grow their profits. The cash for investment can come from prior year profits (retained earnings), issuing new shares, or borrowing. In the case of the first and second options, the ROE will reflect this use of cash, for growth. In the latter case, the debt used for growth will improve returns, but won't affect the total equity. Thus the use of debt can improve ROE, albeit along with extra risk in the case of stormy weather, metaphorically speaking.

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Combining British American Tobacco (Malaysia) Berhad's Debt And Its 48% Return On Equity

British American Tobacco (Malaysia) Berhad clearly uses a high amount of debt to boost returns, as it has a debt to equity ratio of 2.06. While no doubt that its ROE is impressive, we would have been even more impressed had the company achieved this with lower debt. Debt increases risk and reduces options for the company in the future, so you generally want to see some good returns from using it.

Summary

Return on equity is a useful indicator of the ability of a business to generate profits and return them to shareholders. In our books, the highest quality companies have high return on equity, despite low debt. All else being equal, a higher ROE is better.

Having said that, while ROE is a useful indicator of business quality, you'll have to look at a whole range of factors to determine the right price to buy a stock. It is important to consider other factors, such as future profit growth -- and how much investment is required going forward. So you might want to check this FREE visualization of analyst forecasts for the company.

Of course British American Tobacco (Malaysia) Berhad may not be the best stock to buy. So you may wish to see this free collection of other companies that have high ROE and low debt.

Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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28.06.25 16:39:25 Deutsche Bank Raises British American Tobacco (BTI) PT on Strong US Performance
British American Tobacco plc (NYSE:BTI) is one of the 11 best European stocks to invest in. On June 10, Deutsche Bank raised BTI’s price target to £38.00 from £35.00. The firm maintained its “Buy” rating on the company’s stock.Deutsche Bank Raises British American Tobacco (BTI) PT on Strong US Performance

A close-up of an assembly line with a blend of tobacco products.

British American Tobacco’s June 3 pre-close update projected stronger-than-expected first-half 2025 revenue, driven largely by its rebound in the U.S. market. The company anticipates renewed revenue and profit growth this year, supported by strong performance in its Combustibles segment and Velo Plus, alongside impressive margins and a 6.17% dividend yield.

Globally, Velo continues to thrive—especially in the AME region—despite regulatory hurdles in APMEA markets like Bangladesh and Australia. While illicit vape activity in the U.S. may temper near-term gains, BAT still expects modest New Category growth in H1 and acceleration to mid-single digits by year-end, buoyed by Velo’s momentum and the rollout of glo Hilo.

British American Tobacco plc (NYSE:BTI) is a British consumer goods company. It produces and sells tobacco and nicotine products, including traditional cigarettes, heated tobacco, vapour devices, and oral nicotine pouches. Its key brands include Dunhill, Lucky Strike, Pall Mall, Camel, Vuse (vapes), glo (heated tobacco), and Velo (nicotine pouches). The company operates in over 180 markets across the Americas, Europe, Asia-Pacific, the Middle East, and Africa.

While we acknowledge the potential of BTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Value Penny Stocks to Buy According to Analysts and 12 Best Augmented Reality Stocks to Buy According to Analysts.

Disclosure: None.

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27.06.25 17:30:02 British American Tobacco’s Unusual Options Activity Sets Up Nicely for This Multi-Leg Strategy
Options button on browser by Pashalgnatov via iStock

This week was a hot one for most of the eastern seaboard, including up to Nova Scotia, where I live.

Let’s hope the weather is a little more tolerable a week from now when Americans take part in Fourth of July celebrations from coast to coast.

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This Options Trade Lets You Buy Palantir Stock Without Worrying About Whiplash Sell Short AMZN Put Options (Out-of-the-Money) to Make a 2.0% Monthly Yield British American Tobacco’s Unusual Options Activity Sets Up Nicely for This Multi-Leg Strategy Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else.

In the four days of trading so far this week, the S&P 500 is up 2.9%. If it holds through the end of today, the index will be up 27% from its 52-week low in early April.

One look at the unusual options activity from Thursday suggests that the markets have become overheated. Stocks that retail investors have no business owning are garnering significant interest. The possibility of a pullback in July is high.

One stock that looks attractive for options investors is British American Tobacco (BTI). This UK-based tobacco company offers a range of products, including traditional cigarettes and more innovative smokeless alternatives.

In yesterday’s options trading, the volume was 10 times its 30-day average. As a result, the tobacco stock had 19 unusually active options. One of them points to a potentially profitable multi-leg strategy.

Have an excellent weekend!

The Unusual Options Activity Points to a September DTE

As I mentioned in the introduction, BTI had 19 unusually active options yesterday. All of them were call options with expirations varying from 22 to 569 days.

I’m sure you could come up with countless options strategies on your own. However, in recent weeks, I’ve been focused on a particular options strategy--the synthetic long accompanied by a long (protective) put--so I’ll go with this angle for today’s commentary.

The synthetic long with a protective put involves buying an ATM (at-the-money) call and selling an ATM put with the same strike price and expiration date, combined with buying a long put with the same expiration date and a slightly lower strike price for downside protection, hence the protective put moniker.

So, we’re looking at a three-legged trade.

To get things started, I’m looking for a call that has a DTE (days to expiration) between 60 and 120 days. Using a longer DTE will cost you more, but the additional time allows for your bet to play out.

Story Continues

Yesterday’s closing price was $48.09, so I’m after something within a dollar or two of the share price. The Sept. 19 $48 call with a DTE of 85 does the trick. The ask price of $2.30 is a reasonable 4.8% of the strike price.

I now need a Sept. 19 $48 put to sell for the premium income, and a put to buy with a slightly lower strike price. The bid price of $2.00 provides an annualized return of 18.0% [$2.00 / $48 * 365 / 85].

Now, ideally, the put you want to buy has a strike price $1 below $48. However, I prefer the $45 put over the $47 put because it has five times the open interest, giving you a better chance of executing the entire strategy.

1) Buying one $48 call costs $2.30.

2) Selling one $48 put generates $2.00 in premium.

3) Buying one $45 put costs $1.00.

The net debit for all three trades is $1.30, or 2.7% of the share price.

Why This Strategy Over Simply Buying the $48 Call?

It’s a valid question. As I mentioned earlier, buying the $48 call would be just 4.8% of the strike price, $100 more than trying to execute all three trades. That makes it a much simpler bet and proposition.

However, you only make money if the share price is ITM (in-the-money). As of yesterday’s close, it was--by nine cents. With 85 days to expiration, it’s more than possible that the share price will be higher in September.

BTI stock is a Strong Buy according to Barchart’s Technical Opinion with an 88% chance of maintaining its current direction. Its shares are up over 28% in the past six months, with 3% gains in the past month alone.

The profit probability on the call is 36.54% (as shown below), with a breakeven point above $50.30. As I write this early in Friday trading, however, BTI’s stock is trading 2.4% lower, below $47, now OTM (out-of-the-money).

The synthetic long combined with a long put allows for potential gains whether the share price moves up or down over the next 85 days. Unless you’re 100% certain it will move higher, this strategy allows for some flexibility.

I Like BTI Stock to Buy and Hold

In May 2022, I recommended British American Tobacco, along with BP (BP), as two potential cash cows to buy from the Pacer Global Cash Cows Dividend ETF (GCOW).

At the time, it had $9 billion in free cash flow, which translated to a free cash flow margin of 35%, a very healthy percentage. Based on its trailing 12-month figures from Morningstar—free cash flow of $9.52 billion and $25.87 billion—its free cash flow margin is 36.8%, which is even healthier.

Yet its share price has only risen 9% over the past three years, due to a significant dip in 2023. Since hitting its five-year low on April 15, 2024, its shares have gained 66%, a slight improvement over the S&P 500.

In May, I highlighted BTI’s Sept. 19 $55 call, suggesting that you could double your money if its share appreciated by $2.72 in the next 121 days. Looking at today’s action, 100 of these call contracts traded hands at $0.25, about 25% higher than in May.

While it hasn’t quite worked out as I thought, I still think BTI’s share price will be higher in 85 days than where it is today.

With a 6.3% yield, it’s an excellent dividend stock to own for the long haul. But I digress.

The Bottom Line

I like the synthetic long combined with a long put. It lowers the risk while maintaining a reward proposition.

For example, should BTI stock fall 20% over the next three months to $38.47 from $48.09, you would lose $4.30. However, if you only did the synthetic long bet, you would be out $9.83, more than double.

1) You would lose $2.30 on the $48 call because it would expire worthless.

2) You would lose $7.53 on the short $48 put [$38.47 share price - $48 strike price + $2.00 premium].

3) You would make $5.53 on the long $45 put [Strike price $45 - $38.47 share price - $1.00 premium].

In the same scenario, if the price were to increase by 20% to $57.71, you would earn $8.41, representing a return of 17.5% on the initial $48.09 share price, or 75.1% annualized. More importantly, it’s $1 more than you would make with the lone call.

1) You would make $7.41 on the $48 call [$57.71 share price - $48 share price - $2.30 premium].

2) You would make $2.00 on the short $48 put because it would expire worthless.

3) You would lose $1.00 on the long $45 put because it would expire worthless.

Is the extra dollar worth it? It is if you’re truly bullish about BTI stock.

If you are, you might simply buy 100 shares at $48.09 and wait for it to appreciate, forgoing options altogether. However, if it drops 20% come Sept. 19 to $38.47, you’ve got a paper loss of $9.62, as opposed to $4.30 with the synthetic long and protective put strategy.

Ultimately, if your goal is to own quality stocks rather than simulating ownership, this strategy probably isn’t for you.

On the date of publication, Will Ashworth did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

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26.06.25 06:16:26 British American Tobacco Strengthens Dividend as Analyst Confidence Grows
British American Tobacco p.l.c. (NYSE:BTI) is one of the 10 low risk dividend paying stocks for June 2025.

The company’s shares see a weekly performance growth of 1.02% while analysts are maintaining their rating on the stock.British American Tobacco Strengthens Dividend as Analyst Confidence Grows

A close-up of an array of tobacco products, emphasizing the selection and consumer choice.

Based in London, British American Tobacco p.l.c. (NYSE:BTI) is a British multinational company, engaged in the business of manufacturing and selling cigarettes, tobacco, and other nicotine products, including electronic cigarettes. Incorporated in 1902, the company is the second-largest tobacco seller in the world, in terms of net sales.

On June 10, 2025, Deutsche Bank maintained a Buy rating on the stock with a price target of £38. Two days after, on June 13, 2025, citing the growth in the U.S. nicotine pouch industry, Barclays raised the price target for the company from 3,750 GBp to 4,100 GBp, while maintaining the Overweight rating on the stock. Notably, Barclays elevated the price target to 3,750 GBp from 3,450 GBp, earlier on June 5, 2025.

Following stable ratings and consecutive rise in price targets from Barclays, the company’s weekly performance went up by 1.02% while the monthly performance incurred a growth of 10.47%.

British American Tobacco p.l.c. (NYSE:BTI) has a low beta of 0.32, indicating low risk and volatility. The company’s dividend yield stands at 6.07% with an ex-dividend date of June 27, 2025, for investors looking to benefit from the next dividend payment.

While we acknowledge the potential of BTI as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 Best Dividend Stocks According to Jim Cramer and 10 Best Dividend Stocks to Buy for Dependable Dividend Growth.

Disclosure. None.

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24.06.25 23:52:00 British American Tobacco (BTI) Leverages 6.1% Yield to Extend Railly
Over the past year, British American Tobacco (BTI) has gained 51%, driven in part by investor demand for reliable dividend income amid growing expectations of lower interest rates. High-quality dividend payers, such as BTI, which has boasted 29 consecutive years of dividend increases, tend to perform well in such environments.

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While the yield has decreased from a peak of 10% to 6.1%, primarily due to the share price rally, BTI’s strong fundamentals suggest further upside potential. Here’s a closer look at what continues to support the company’s momentum and why I remain bullish on the tobacco giant.

Combustibles Represent Steady Cash Cow for BTI

British American Tobacco’s core combustible business, which includes brands like Camel and Lucky Strike, remains a powerhouse. In this month’s 2025 half-year pre-close trading update, management reported a return to growth in the U.S., a critical market, driven by stronger delivery in combustibles. Organic sales for combustibles nudged up 0.1% at constant rates, with a 5.3% price/mix improvement offsetting a 5.2% volume decline. This resilience is a remarkable achievement for a “struggling” tobacco major, as combustibles still account for over 80% of revenue.

Despite global smoking rates dropping at a rate of mid-single digits annually, BTI’s ability to raise prices and maintain margins showcases its pricing power. Additionally, CEO Tadeu Marroco highlighted cost savings of £402 million in 2024, which will help counter inflationary pressures, such as higher leaf prices, making the strong sales seem all the more impressive. Overall, with the U.S. market showing signs of stabilization, combustibles continue to fund BTI’s transformation while delivering steady cash flows for dividends and buybacks.

Smokeless Growth Accelerates to BTI’s Advantage

BTI’s pivot to “new categories”, including vaping, heated tobacco, and oral nicotine products, is also gaining traction. The latest trading update highlighted an 8.9% organic revenue jump in these segments, with Velo Plus nicotine pouches leading the charge in the U.S. Management noted strong customer retention for Velo, which is closing the gap with Philip Morris’s Zyn. Meanwhile, Glo Hilo, an upgraded heated tobacco device, is expanding into new markets, boosting competitiveness.BTI’s Velo smoke-free tobacco products being sold in 2022.

Though new categories contribute less than 15% of revenue compared to Philip Morris’s (PM) 40%, BTI’s innovation is paying off, in my view. In fact, the company raised its 2025 revenue growth guidance to 1%-2% from 1%, citing better-than-expected first-half performance in modern oral products. The CEO’s confidence in achieving 3-5% revenue growth by 2026 suggests that BTI’s smokeless portfolio is no longer a side hustle, or a bet, as many would argue, but a meaningful growth driver.

Story Continues

And while it is fair to criticize that vaping volumes dipped 9% in the first half, Vuse remains a U.S. market leader. BTI’s focus on premiumization and innovation, such as synthetic nicotine in Velo Plus, positions it to capture market share in a rapidly evolving nicotine market. This segment’s momentum suggests BTI is building a future beyond cigarettes.

BTI Remains a Bargain Despite Its Recent Rally

After a 57% rally, one might expect British American Tobacco (BTI) to look expensive—but it still trades at a forward P/E just under 11 while the sector median hovers at ~16, an attractive valuation even for a so-called “sin” stock. On a trailing twelve-month basis, BTI’s P/E ratio is currently 28, while the sector average is 22, indicating that although the market may view BTI as slightly overvalued today, the next twelve months appear promising.

Moreover, the company continues to generate strong cash flow and has raised its dividend for 29 consecutive years. While the yield has declined from around 10% to 6.6%, this is a result of share price appreciation, not a dividend cut. In fact, if interest rates decline as expected, BTI’s dependable yield could draw even more investor interest, potentially driving the stock higher.

The company’s $1 billion share buyback last year, while modest relative to its $108 billion market cap, enhances the total shareholder return. Factoring in the buyback, the blended yield rises to about 7.5%, offering even more appeal. Altogether, BTI’s low valuation, strong income profile, and capital return strategy provide a compelling case for continued upside—with a margin of safety—even as the stock pushes toward new 52-week highs.

What is the Price Target for BTI?

Wall Street’s stance on British American Tobacco is bearish, although with only a handful of analysts covering the stock. As things stand, BTI carries a Moderate Sell consensus based on one Sell rating in the past three months. BTI’s average 12-month price target of $35.50 implies a potential downside of about 28%, suggesting that many analysts believe the stock may have already priced in much of its recent strength.See more BTI analyst ratings

BTI Offers Yield, Value, and Further Growth Potential

Despite its 57% rally, BTI remains a strong investment option. With a 6.1% dividend yield, a valuation of less than 11x forward earnings, and solid cash flow supporting both dividends and share buybacks, BTI stands out among income-focused opportunities.

Its core combustibles business remains resilient, while growth in smokeless products, such as Velo, signals a forward-looking pivot. While regulatory headwinds and the transition to next-gen products pose challenges, BTI’s global footprint and disciplined capital strategy position it well for investors seeking reliable yield and potential upside, especially in a rate-cutting environment.

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24.06.25 16:00:55 British American Tobacco p.l.c. (BTI): A Bull Case Theory
We came across a bullish thesis on British American Tobacco p.l.c. (BTI) on Next Gen Investors Endowment’s Substack by Judah Kang. In this article, we will summarize the bulls’ thesis on BTI. British American Tobacco p.l.c. (BTI)'s share was trading at $48.6 as of 12th June. BTI’s trailing and forward P/E were 26.34 and 10.26 respectively according to Yahoo Finance.10 Countries with the Most Cigarette Smokers per Capita

mmoktp/Shutterstock.co

British American Tobacco (BTI) presents a compelling investment opportunity, anchored by strong cash flows, disciplined capital allocation, and a focused transition strategy toward reduced-risk products (RRPs). While Combustibles still dominate revenue, BTI’s New Categories—Vapour, Heated Tobacco, and Modern Oral—have reached 17.5% of sales, reflecting meaningful progress.

The company’s ambition to reach 50% of revenue from Smokeless by 2035 is underpinned by rising category adoption, especially in growth regions across APMEA and Latin America. Combined with BTI’s pricing power in premium Combustibles markets like the U.S., this shift helps preserve margins, enabling a generous and sustainable 7.4% dividend yield backed by strong free cash flow.

BTI is also proactively repositioning itself as a sustainability leader despite operating in a sin industry. Its climate strategy targets carbon neutrality by 2030 (Scopes 1 and 2) and net-zero by 2050, aligning with Paris Agreement goals. BTI’s 30% emissions reduction since 2017 and alignment with TCFD, GRI, and CSRD frameworks enhance its credibility among ESG-focused investors. Its robust environmental governance and responsible agriculture practices further support long-term resilience.

Valuation-wise, a two-stage dividend discount model incorporating a conservative -1.0% terminal growth rate—factoring in secular declines in tobacco—yields an intrinsic value of £36.90 ($47.24), implying 12.6% upside. Relative valuation is inappropriate given BTI’s litigation exposure, asset structure, and unique global footprint. While regulatory and execution risks remain, they appear priced in. BTI offers a rare combination of income, ESG progress, and emerging-market growth optionality in the global nicotine transition.

Previously, we highlighted a bullish thesis on BTI by Brian Coughlin, spotlighting Velo’s explosive growth, pricing edge over Zyn, and potential for rerating as nicotine pouches scale. The stock has since then appreciated by approximately 16%. Judah Kang echoes this optimism but frames BTI as a cash-rich, ESG-aware income compounder, citing its 50% smokeless revenue goal, sustainability progress, and attractive 7.4% yield with modest upside.

Story Continues

British American Tobacco p.l.c. (BTI) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 27 hedge fund portfolios held British American Tobacco p.l.c. (BTI) at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of BTI as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.

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20.06.25 13:30:00 Philip Morris International’s Boss Has Smoked Out Smokeless Opportunities
Cigarettes belong in museums, says Philip Morris International Jacek Olczak, who sold more than 600 billion last year. It’s a dissonance that inflames antismoking activists—he’s fighting for Marlboro market share while giving lip service to quitting, they say. Olczak, 60, says rivals like British American Tobacco and state cigarette monopolies would supply the market if his company didn’t.

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17.06.25 06:07:54 British American Tobacco sets exchange rate for August dividend
LONDON - British American Tobacco (NYSE:BTI) p.l.c. (LSE:BATS) has announced the exchange rate for its upcoming August 2025 dividend payment to shareholders on its South Africa branch register.

The company has set an exchange rate of £1:R24.3147, resulting in a dividend payment of 1460.34088 South African cents per ordinary share. This payment represents the second installment of the company’s interim dividend for the year ended December 31, 2024.

The August dividend of 60.06 pence per share will be paid on August 1, 2025, to shareholders registered on either the UK main register or the South Africa branch register as of June 27, 2025.

South African shareholders will be subject to a 20% Dividends Tax, equivalent to 292.06818 South African cents per share, unless they qualify for an exemption. After this tax, the net dividend will be 1168.27270 cents per share.

The company noted that the dividend is classified as a "foreign dividend" for South African tax purposes, with the United Kingdom being the source of income for the payment.

As of June 13, 2025, British American Tobacco had 2,196,693,009 ordinary shares in issue, excluding 133,005,360 shares held in treasury.

This information was provided in a company press release detailing the finalization information for shareholders on the South Africa branch register.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
03.06.25 06:23:31 BAT lifts annual sales target as US demand improves
(Reuters) -British American Tobacco nudged up its annual sales growth target on Tuesday to 1%-2%, saying revenue in the first half was ahead of expectations and sales in the United States were picking up.

The maker of Lucky Strike and Dunhill cigarettes, which had previously forecast 1% sales growth this year, said it expects low-single digit revenue growth in the first half in its New Categories business that includes vapes, tobacco heating products and oral nicotine pouches.

BAT and its peers have been struggling with declining tobacco sales as consumers switch to cheaper brands or alternatives such as vapes, and as regulations tighten.

"While Combustibles industry volume remains under pressure... we have stabilised our total industry volume and value share," CEO Tadeu Marroco said in a trading statement.

The industry is also being squeezed by sales of unauthorised, flavoured disposable vapes. Sales of such products amounted to around $2.4 billion in the United States in 2024.

"The Vapour category remains impacted by the proliferation of illicit vapour products in the U.S. and Canada," Marroco said, adding that the first-half revenue growth forecast in New Categories reflected this pressure.

New Categories sales growth for the year is expected to accelerate to mid-single digits, the company said.

The United States accounted for 44% of BAT's total group revenue in 2024.

In February, BAT had warned of a 6.2-billion-pound ($8.39 billion) hit from a Canadian lawsuit and said tax headwinds in Bangladesh and Australia would dent its performance in 2025.

The company, which last month sold a $1.5 billion stake in Indian consumer goods company ITC, also increased its 2025 share repurchase target to 1.1 billion pounds.

($1 = 0.7391 pounds)

(Reporting by Shashwat Awasthi in Bengaluru; Editing by Rashmi Aich and Susan Fenton)

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27.05.25 13:44:59 British American Tobacco sells $1.5 billion stake in India's ITC via block deal
By Scott Murdoch

(Reuters) -British American Tobacco has sold a $1.5 billion stake in Indian consumer goods company ITC at 413 Indian rupees per share, according to a term sheet seen by Reuters.

The company sold 313 million shares in ITC, representing 2.5% of ITC, according to the term sheet. This final amount exceeded its initial plan to sell up to 290 million shares in the deal, valued at approximately $1.4 billion.

The final sale price represented a 4.8% discount to ITC's closing price of 433.90 rupees on Tuesday.

Shares of ITC dropped nearly 3% to 421.70 rupees on Wednesday. The stock was the top loser on both Nifty 50 and the FMCG index.

BAT will remain ITC's largest shareholder after the deal, according to LSEG data.

Goldman Sachs and Citigroup led the deal, the term sheet showed.

The deal is the second major block trade in India this week after IndiGo co-founder Rakesh Gangwal sold a 5.7% stake in the low-cost carrier worth $1.36 billion.

BAT said it would increase its 2025 1.1 billion pounds ($1.49 billion) share buyback programme by 200 million pounds as a result of the deal, which is not expected to have any other impact on its annual outlook.

The London-listed cigarette maker had last year sold 436.9 million shares, or roughly 3.5% of ITC's outstanding shares, for about $2 billion in what was India's third-largest block deal ever.

The British firm in February forecast 1% growth in its annual revenue, citing tax headwinds in key markets such as Bangladesh and Australia.

($1 = 0.7401 pounds)

(Reporting by Scott Murdoch in Sydney; additional reporting Kashish Tandon, Prerna Bedi and Raechel Thankam Job in Bengaluru; Editing by Leroy Leo, Stephen Coates and Sherry Jacob-Phillips)