British American Tobacco posts H1 2026 results, smokeless growth offsets mixed markets
British American Tobacco (BAT) reported first‑half 2026 revenue of £12.2 billion, a 1.4% rise year‑on‑year and 2.9% in constant‑currency terms. Smokeless products made up 19.8% of group revenue, up 1.6 percentage points, and the smokeless consumer base grew to 35 million, adding 0.9 million users. New Categories revenue reached £1.93 billion and contribution margin improved by 3.3 percentage points to 13.3%. Adjusted diluted EPS increased 7.9% and the company reaffirmed its full‑year EPS guidance.
CEO Tadeu Marroco said BAT is well positioned to benefit from recent FDA prioritisation guidance on vapour and modern‑oral products. The firm plans a national rollout of Velo Max in the second half of 2026 and will introduce a disciplined range of adult‑focused Vuse flavours. BAT also reiterated its cost‑cutting programme, targeting roughly £600 million of annual savings by 2028, including a planned reduction of about a fifth of its 47 000‑strong workforce.
Analysts noted strong momentum in the smokeless portfolio offsetting mixed performance in regional combustible markets, with modern oral products remaining the fastest‑growing category.
Entities: British American Tobacco · Modern Oral · New Categories · Opal Capital LLC · Tadeu Marroco · Velo Max
Claims
What the coverage asserts, and how well corroborated each claim is across sources.
- [● 2 SOURCES] BAT plans a national rollout of Velo Max in the second half of 2026 and will introduce adult‑focused Vuse flavours. (CEO statement during earnings call)
- [● 3 SOURCES] New Categories revenue reached £1.93 billion and contribution margin rose 3.3 percentage points to 13.3%. (British American Tobacco's H1 2026 results)
- [● 3 SOURCES] Adjusted diluted EPS increased 7.9% in the first half of 2026. (British American Tobacco's H1 2026 results)
- [○ 1 SOURCE] BAT aims to cut annual costs by about £600 million by the end of 2028, including reducing its workforce by roughly a fifth (about 47,000 jobs). (Company statement in German press release)
- [● 3 SOURCES] BAT's smokeless consumer base grew to 35 million, an increase of 0.9 million users. (British American Tobacco's H1 2026 results)
- [● 2 SOURCES] CEO Tadeu Marroco said BAT is well positioned to benefit from FDA vapour and modern‑oral guidance. (CEO statement during earnings call)
- [● 3 SOURCES] British American Tobacco reported first‑half 2026 revenue of £12.2 billion, up 1.4% year‑on‑year and 2.9% in constant‑currency terms. (British American Tobacco's H1 2026 results)
- [● 3 SOURCES] Smokeless products accounted for 19.8% of total group revenue, an increase of 1.6 percentage points from the prior year. (British American Tobacco's H1 2026 results)