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British American Tobacco PLC on Tuesday announced a new £1.4 billion share buyback and hailed ‘strong’ US performance. The London-based cigarette and nicotine product maker also said it was on track to meet its 2025 guidance and reaffirmed 2026 estimates. The Dunhill and Kent maker expects total group revenue to rise 2% at constant rates for 2025, with new category revenue likely to reach mid-single digit growth at constant rates. Adjusted profit from operations is projected to rise 2% at constant rates. It highlighted strong US revenue and profit momentum, said the company with a market capitalisation of around $125.36 billion. New category revenue growth has accelerated to double-digit in the second half of 2025, driven by Velo that is becoming the fastest growing segment in the new category. In a trading statement, BAT said it expects to continue to meet its interest-bearing debt minus cash divided by earnings before interest, taxes, depreciation and amortisation target by by end 2026. ‘I am particularly pleased with our momentum in the US, the world’s largest nicotine value pool,’ Chief Executive Officer Tadeu Marroco said, adding: ‘Strengthened combustibles performance and enhanced commercial execution reinforce our future confidence.’ BAT said Americas & Europe delivery remains strong, while Asia Pacific, Middle East & Africa faces a hit from ongoing fiscal and regulatory headwinds in Bangladesh and Australia. The Vuse owner announced a £1.3 billion share buyback. In October, it unveiled a £1.60 billion repurchase plan. It said it expects global tobacco industry volume to fall 2% in 2025. In Johannesburg, shares in BAT were up 0.7% to R 973.50 on Tuesday morning. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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