British American Tobacco Rises 0.98% on 438th Volume Rank as U.S. Market Recovery and Velo Plus Growth Offset Revenue Slump

On July 31, 2025, British American Tobacco (BTI) closed with a 0.98% gain, trading at 4,058.00 pence. The stock ranked 438th in trading volume across the London market, with total turnover reaching £0.34 billion. The company maintained its FY25 outlook despite reporting a 2.2% year-on-year revenue decline in H1 to £12.07 billion, citing U.S. market recovery driven by combustible products and Velo Plus growth. Management reaffirmed expectations for revenue growth at the upper end of its 1-2% guidance range, supported by mid-single-digit expansion in New Category products.

While pre-tax profits dipped marginally to £5.57 billion from £5.60 billion in the prior year, adjusted earnings per share fell to 162.0 pence from 169.3 pence. The firm emphasized adjusted operating profit growth of 1.5-2.5% (excluding Canada) and highlighted resilience in the AME region. Global tobacco industry volume is projected to contract by approximately 2% amid macroeconomic pressures, though U.S. performance has offset declines in APMEA markets.

Strategic focus remains on U.S. market revitalization and Velo Plus innovation, with management expressing confidence in navigating industry headwinds. The stock's recent performance reflects investor optimism about the company's ability to balance cost pressures with growth in alternative nicotine categories.

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