British American Tobacco p.l.c. (BATS) Earnings Call Transcripts

British American Tobacco p.l.c.'s Latest Earnings Call - June 2, 2026

In the first half of 2026, British American Tobacco (BATS:GB) reported strong revenue and profit growth, particularly in the U.S., driven by robust performance in New Categories, including Modern Oral and Vapour. Revenue growth in New Categories is expected to accelerate to mid-teens for both H1 and the full year, reflecting a positive shift in market dynamics and regulatory support. The company maintained its guidance for the full year, signaling confidence in achieving its net debt to EBITDA leverage target of 2 to 2.5x by year-end while continuing its progressive dividend and share buyback program.

Reported metrics

Guidance from management

BAT maintains its full year guidance, expecting continued U.S. momentum and New Category growth. The company is on track to achieve its net debt to EBITDA leverage target of 2 to 2.5x by year-end.

What management said

I think just one addition that in terms of the question on capacity, we have done enough capacity investments across U.S. supply chain footprint. So we don't foresee any challenge of supplying the continuous growth of Velo Plus or any future launches in the second half of this year. So there is no capacity challenge we foresee right now. .

No. The underlying market is actually improving. The level of enforcement that we are seeing from the state levels mainly is really having a favorable impact and give us some confidence that combined with the new offers we've come to the market as we go along. But remember that this year will be more the last quarter of the year. But -- so we will not be the driver behind the double-digit expectation but will be hel...

What analysts pressed on

Analysts expressed concerns about the impact of down-trading trends in U.S. combustibles and the potential effects of Middle East uncertainties on consumer sentiment. There were also questions regarding the timing of new product launches and their expected market impact.

Main topics on the call

• U.S. Revenue and Profit Growth — BAT expects strong revenue and profit growth in the U.S., supported by ongoing combustibles delivery and growth in Vapour. Tadeu Marroco stated, "We are now the fastest-growing company in total nicotine, reflecting the s...
• New Category Growth Acceleration — Management anticipates New Category revenue growth to accelerate to mid-teens in H1 and for the full year, driven by Modern Oral and a return to growth in Vapour. Marroco noted, "We expect strong U.S. Modern Oral financi...
• FDA Guidance Impact — The FDA's recent prioritization guidance is expected to improve market conditions for reduced-risk products. Marroco expressed confidence, stating, "This reinforces my confidence in our sustainable financial delivery."
• Combustibles Performance — Despite a decline in volume share in combustibles, BAT reported resilient financial performance, offsetting declines with robust pricing and efficiency gains. The U.S. value share declined 20 basis points, but management...

Read the full British American Tobacco p.l.c. transcript (June 2, 2026) → Summary generated from the call transcript; every figure above is stated by management on the record.

Earnings Call History

EarningsCalls.dev has 34 British American Tobacco p.l.c. earnings call transcripts on record, spanning February 27, 2020 to July 30, 2026. Based on this history, British American Tobacco p.l.c. reports quarterly. The most recent call on file is dated July 30, 2026. The full list is below — each row opens the complete, free-to-read transcript.

Ticker

BATS

Exchange

LSE

Country

GB

Sector

Consumer Staples

Industry

Tobacco

Calls on record

34

First call

February 27, 2020

Most recent

July 30, 2026

Reporting cadence

quarterly