British American Tobacco p.l.c. (BTI) Q1 2025 Sales/Trading Statement Call Transcript

British American Tobacco now anticipates full-year revenue growth of 1% to 2%, slightly ahead of previous guidance, which supports adjusted profit from operations growth of 1.5% to 2.5% in 2025. CEO Tadeu Marroco highlighted the expected return to revenue and profit growth in the U.S. as a key takeaway from the company's first-half pre-close conference call.

Analysis

British American Tobacco p.l.c. (BTI) has communicated an improved outlook for fiscal year 2025, as detailed in its Q1 2025 Sales/Trading Statement. The company now anticipates full-year revenue growth between 1% and 2%, a slight outperformance compared to its previous guidance. This revised revenue forecast is expected to support an adjusted profit from operations growth of 1.5% to 2.5% for 2025, with these figures presented on a constant currency adjusted basis and including adjustments related to its Canadian combustibles business. A key positive development highlighted by CEO Tadeu Marroco is the expectation that BTI will return to both revenue and profit growth in the U.S. market in the first half of 2025. This signals a potential turnaround in a critical market for the company. The provided share data context compares year-to-date average to March 2025 against the full year 2024 average.

Key Decisions for Investors

• Investors should consider the positive implications of British American Tobacco's upwardly revised full-year 2025 guidance for both revenue and adjusted profit from operations.
• The anticipated return to growth in the U.S. market represents a significant potential catalyst; monitor upcoming earnings releases for confirmation and sustainability of this trend.
• Re-evaluate investment theses for BTI in light of this improved guidance and the positive outlook for the U.S. segment, while remaining cognizant that these are forward-looking statements.