British American Tobacco stock (GB0002875804): Q1 trading update shows new category growth

British American Tobacco reported steady Q1 2026 performance with non-combustibles revenue up 17% on constant currency basis, maintaining full-year guidance amid combustible declines.

British American Tobacco plc released its first-quarter 2026 trading update on April 24, 2026, showing volume declines in combustible tobacco products offset by strong growth in new categories. Non-combustibles revenue rose 17% on a constant currency basis, according to Ad-hoc-news.de as of 04/24/2026. The company maintained its full-year guidance for adjusted diluted EPS of 390-410 pence. Shares traded at 2,450 GBp on 05/13/2026 on the London Stock Exchange, according to LSE data as of 05/13/2026.

As of: 13.05.2026

By the editorial team – specialized in equity coverage.

At a glance

• Name: British American Tobacco plc
• Sector/industry: Tobacco / Consumer Staples
• Headquarters/country: London, UK
• Core markets: US, Europe, Asia-Pacific, Emerging Markets
• Key revenue drivers: Cigarettes, Vapes, Oral Nicotine
• Home exchange/listing venue: London Stock Exchange (BATS)
• Trading currency: GBp

British American Tobacco plc: core business model

British American Tobacco plc operates as a global tobacco and nicotine company, producing and selling cigarettes, vaping products, oral nicotine pouches, and heated tobacco items. Combustible tobacco remains the largest segment, contributing 78% of 2025 group revenue at £25.7 billion for the year ended December 31, 2025, as reported in the company's financials per Ad-hoc-news.de as of 04/24/2026. The firm is transitioning toward reduced-risk products (RRPs) to address declining traditional volumes.

New categories like Vuse vaping products grew 12% in volumes during Q1 2026, while Velo oral nicotine pouches expanded 28%, highlighting diversification efforts in a regulated industry.

Main revenue and product drivers for British American Tobacco plc

Key drivers include combustible brands such as Lucky Strike and Dunhill, alongside RRPs like Vuse and Velo. In Q1 2026, non-combustibles offset combustible declines, supporting overall stability. US exposure via brands like Vuse provides relevance for American investors through the NYSE-listed ADR (BTI).

The US nicotine pouch market is projected to grow to $10 billion by 2030 per S&P Global as of 03/15/2026, positioning BAT favorably.

Why British American Tobacco plc matters for US investors

BAT's NYSE-listed ADR (BTI) offers US portfolios access to a FTSE 100 constituent with a reported 7% dividend yield and exposure to GBP strength. For US investors, BAT provides diversified tobacco exposure amid domestic regulatory scrutiny on traditional products.

Conclusion

British American Tobacco plc's Q1 2026 trading update demonstrates resilience with RRP growth countering combustible declines while upholding full-year guidance. The transition to new categories continues amid regulatory and macroeconomic pressures. US investors may note the ADR listing and US market opportunities in nicotine pouches for ongoing monitoring.

Disclaimer: This article does not constitute investment advice. Stocks are volatile financial instruments.