British American Tobacco — Moving to a smokeless world

British American Tobacco’s (BAT’s) strategy is to become a predominantly smokeless business, generating more than 50% of revenue (FY24: 17.5%) from smokeless products by FY35. The industry backdrop is favourable, with higher revenue growth expected as consumers move to new reduced-risk products. Having transformed its capabilities through scientific research, customer engagement and product innovation, management believes focused investment should enable BAT to continue capturing the enhanced growth opportunity with better returns. BAT is confident of higher profit growth in FY25 before hitting its full stride of 4–6% pa sustainable growth from FY26, comparable to BAT’s growth rates before FY22.