British American Tobacco Shares Surge 1.25% with £0.31 Billion Trading Volume as Strong H1 Results and Strategic Moves Fuel Growth

British American Tobacco (BTI) shares rose 1.25% on August 1, 2025, with a trading volume of £0.31 billion, as the company reported stronger-than-expected H1 results. Group revenue grew 1.8%, adjusted profit from operations increased 1.9%, and full-year revenue guidance was raised to the top end of the 1-2% range. New categories, including modern oral and heated products, contributed 18.2% of revenue, with modern oral growth exceeding 40% globally.

The U.S. market returned to revenue and profit growth, driven by 3.8% combustible revenue growth and 3.7% overall revenue expansion. However, illicit trade and regulatory challenges in Canada and the U.S. vapor sector caused a 13% decline in vapor revenue. The company announced a £1.1 billion share buyback for 2025 and reiterated a target of generating over £50 billion in free cash flow by 2030, bolstering financial flexibility.

Strategic initiatives included the global rollout of OMINI in 13 markets and the launch of Velo Plus in the U.S., which contributed to 380% growth in modern oral revenue. Management emphasized disciplined investment in high-margin new categories and cost-saving programs like "Fit to Win," expected to deliver £500 million in annualized savings by 2028. Despite challenges, BTI reaffirmed its 2025 guidance and expressed confidence in long-term growth from premium innovation and digital transformation.