British American Tobacco (BAT) <BATS.L> said on Tuesday it expects 2026 trading to come in at the lower end of its mid-term targets, as the company grapples with regulatory hurdles and stiff competition in its largest market, the U.S.
The maker of Lucky Strike and Dunhill had previously forecast revenue growth of around 3-5% and a 4%-6% rise in adjusted profit from operations from 2026.
After betting on next-generation products such as vapes and nicotine pouches, the industry is now struggling to drive sales amid a sweeping crackdown on unregulated products and intensifying competition from smaller, mostly China-based players flooding the market with illicit offerings.
The company said it expects about 2% growth in revenue and adjusted profit from operations this year, with new-category revenue growth accelerating to double-digit in the second half, driven by its Velo nicotine pouches and recent improvements in U.S. vaping trends.
BAT also announced a new 1.3 billion-pound ($1.73 billion) share buyback plan on the day.
($1 = 0.7502 pounds)
(Reporting by Yamini Kalia）
