British American Tobacco Reports Growth in New Categories Amid Currency Challenges

British American Tobacco ( (GB:BATS) ) has issued an update.

British American Tobacco’s half-year report for 2025 shows a slight decline in revenue due to currency headwinds, but an increase at constant exchange rates driven by growth in the U.S. and the success of Velo Plus. The company’s New Categories segment, which includes smokeless products, now accounts for 18.2% of total revenue, with a significant increase in contribution margin. Despite challenges in regions like APMEA, BAT remains on track to meet its full-year guidance, with plans for continued innovation and investment in high-profit areas, enhancing shareholder value through strong cash returns and share buy-backs.

The most recent analyst rating on (GB:BATS) stock is a Hold with a £2800.00 price target. To see the full list of analyst forecasts on British American Tobacco stock, see the GB:BATS Stock Forecast page.

Spark’s Take on GB:BATS Stock

According to Spark, TipRanks’ AI Analyst, GB:BATS is a Neutral.

British American Tobacco’s stock is supported by strong cash flow and a robust buyback program. Despite challenges in revenue stability and valuation concerns, the company maintains financial resilience and offers an attractive dividend yield, which is appealing for long-term investors.

To see Spark’s full report on GB:BATS stock, click here.

More about British American Tobacco

British American Tobacco (BAT) is a leading company in the tobacco industry, known for its production and sale of cigarettes and smokeless products. The company focuses on expanding its New Categories segment, which includes products like Velo Plus, a modern oral product, and aims to grow its market share in the U.S. and other regions.

Average Trading Volume: 5,746,201

Technical Sentiment Signal: Buy

Current Market Cap: £85.99B

Find detailed analytics on BATS stock on TipRanks’ Stock Analysis page.