BAT upbeat on sales as nicotine pouches surge in popularity

Lucky Strike and Dunhill firm British American Tobacco (BAT) has said strong demand for smokeless products such as nicotine pouches is set to help deliver sales growth at the top end of forecasts.

In the first six months of 2025, the group added another 1.4 million new customers of smokeless products, which now account for 18.2% of group sales.

It also saw sales and profit return to growth in the US market for the first time in seven years, helped by the launch of Velo Plus nicotine pouches, with this category seeing revenues soar by 384% to £105 million.

Revenues overall lifted 1.8% on a constant currency basis to £12.1 billion in the six months to June 30, although underlying pre-tax profits fell 1.3% to £4.96 billion.

British American Tobacco (BAT) said sales were now expected at the higher end of its full-year revenues guidance for growth of between 1% to 2%.

It remains on track for annual profits to grow by as much as 2.5%.

Shares in the firm hit their highest level since 2018 after rising by as much as 2% in Thursday morning trading.

Tadeu Marroco, chief executive of BAT, said the first half was “slightly ahead of expectations”.

He added: “I am very pleased with our performance in the US.

“Revenue and profit are both up for the first time since 2022 and, alongside the successful launch of Velo Plus, our combustibles volume and value share performance have returned to growth.”