British American Tobacco (BATS) Earnings: FY Revenue Up 2% and Adjusted Operating Profit Growth Confirmed

British American Tobacco on Smartkarma

Analyst coverage of British American Tobacco (BATS LN) on Smartkarma reveals a bullish sentiment in the report titled “Primer: British American Tobacco (BATS LN) – Sep 2025.” According to the research by αSK, the strategic pivot towards new categories is highlighted as critical for the company’s future success. With a target of achieving 50% of revenue from non-combustible products by 2035, the New Categories segment has already shown profitability ahead of schedule, driven by the growth of Vuse (vapor) and Velo (modern oral) products. This shift aims to counteract the decline in traditional cigarette volumes and secure sustainable growth for British American Tobacco.

Despite facing challenges in the US market, including macroeconomic pressures and regulatory threats like the potential menthol cigarette ban, British American Tobacco maintains resilient financials and a commitment to shareholder returns. The report emphasizes the company’s strong cash flow generation and progressive dividend policy, supported by its global market presence and pricing power in combustibles. Investors are advised to consider these factors when evaluating British American Tobacco‘s investment potential amidst its strategic transformation towards a more sustainable and diversified product portfolio.

A look at British American Tobacco Smart Scores

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

British American Tobacco P.L.C., a major player in the tobacco industry, exhibits a mixed bag of Smart Scores. With a strong dividend score of 4 and high momentum score of 5, the company showcases stability and investor interest. However, its growth score of 2 may raise concerns about its future expansion prospects. The value and resilience scores of 3 reflect a moderate outlook in terms of financial health and stability. Despite facing challenges in growth, British American Tobacco‘s solid dividend and momentum scores bode well for long-term investors.

Operating as a holding company for a group of entities involved in the production and sale of tobacco products, British American Tobacco P.L.C. has a diversified portfolio ranging from cigarettes to cigars. The company’s Smart Scores reveal a somewhat favorable position in terms of providing consistent dividends and maintaining market momentum. While facing some hurdles in growth, British American Tobacco remains resilient with a balanced overall outlook for the future.

Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
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