British American Tobacco closed Friday's session with a 1.2% gain, reaching 4,609 pence and outpacing the broader FTSE 100 index. The advance comes ahead of the company's preliminary financial results scheduled for release on February 12.
Focus on Smokeless Growth and Shareholder Returns
The tobacco industry is increasingly shifting its focus toward smokeless nicotine products as traditional cigarette demand softens. Investors are keenly awaiting BAT's upcoming report to assess whether growth in these new categories can be sustained without significant margin pressure. The stock has risen approximately 5% over the past week.
In a move to return capital to shareholders, the company repurchased 121,668 of its own shares on February 5 at a volume-weighted average price of 4,535.6560 pence each. These shares are slated for cancellation, which will reduce the total share count to roughly 2.18 billion, excluding treasury holdings.
Executive Transactions and Competitive Landscape
Separately, Chief Executive Tadeu Marroco acquired 364 ordinary shares at £44.94 each on the same date under a deferred bonus plan. The transaction was disclosed in a regulatory filing.
The competitive environment for oral nicotine and vaping products remains intense. Recent earnings from rival Philip Morris International have highlighted the fierce battle for market share, particularly in the nicotine pouch segment. Analysts note that BAT remains well-positioned to capture additional market share in the United States.
While BAT is often viewed as a defensive income stock, its shares can be sensitive to any signs of slowing growth in its newer product lines. Conversely, heightened regulatory scrutiny on vaping or an escalation in price competition could rapidly impact earnings and challenge the sustainability of current shareholder returns.
The company's preliminary results for 2025 will be released at 0700 GMT on Thursday, February 12. A live webcast with management, including CEO Tadeu Marroco, will follow at 0930 GMT.