British American Tobacco — Strategy driving momentum

British American Tobacco’s (BAT’s) FY25 results demonstrate meaningful progress on its transformation. In addition to releasing results at the top end of expectations, which had been upgraded twice through the year, management delivered all that was promised at the start of FY25 from an operational perspective. BAT had a return to double-digit revenue growth in H225 in New Categories, a higher contribution and innovations in all three categories. The company drove value from Combustibles, with underlying growth in revenue and contribution, and returned the US to revenue and profit growth. Management also focused on cash flow generation and returns, with an enhanced share buyback in FY25 and further cash returns while deleveraging. BAT has clear momentum as it enters FY26, when management anticipates better growth.