Analysis of profit from operations and diluted earnings per share by segment

 

 

 

 

 

–	Reported revenue up 1.0%, being an increase of 3.7% at constant rates.

–	Velo category volume share up 6.8 ppts to 13.2%, with Velo Plus driving strong revenue growth in Modern Oral, up 372%.

–	Vuse maintained value share leadership in tracked channels - despite a 14.5% decline in revenue, being a decrease of 12.3% at constant rates of exchange, mainly driven by lower volume due to the continued impact of illicit single-use vapour products.

–	Combustibles revenue up 1.1% (up 3.8% at constant rates) as price/mix more than offset a 7.6% decline in volume which benefited from a lower comparator. Volume share grew 10 bps with value share up 20 bps.

–	Smokeless now represents 19.5% of total revenue.

For six months to 30 June 2025	Volume			Revenue
	Reported			Reported
				Current		Exchange	Constant
	Unit	vs 2024		£m	vs 2024	£m	£m	vs 2024
New Categories				536	+1.3%	14	550	+3.9%
Vapour (units mn)	123	-13.8%		434	-14.5%	11	445	-12.3%
HP (sticks bn)	—	—%		—	—%	—	—	—%
Modern Oral (pouches bn)	1.1	+206%		102	+372%	3	105	+384%
Traditional Oral (stick eq bn)	2.5	-9.5%		521	-2.9%	14	535	-0.4%
Total Smokeless				1,057	-0.8%	28	1,085	+1.8%
Total Combustibles (bn sticks)	21	-7.6%		4,328	+1.1%	114	4,442	+3.8%
Other				47	+52.5%	1	48	+57.1%
Total				5,432	+1.0%	143	5,575	+3.7%

–	On a constant currency basis, revenue increased 3.7%. This was driven by the performance in:

–

Combustibles, where revenue increased 3.8%, as price/mix (+11.4%) more than offset a 7.6% reduction in volume. While this was marginally lower than the industry volume decline of 8%, our volume was negatively impacted in 2024 by the phasing of wholesaler inventory. Our volume share was up 10 bps and value share was up 20 bps following the actions taken in 2024 to improve performance;

–

Vapour, where the U.S. is the world's largest Vapour market. The Group maintained leadership in value share (of Vapour closed systems consumables in tracked channels) despite a decline in value share of 20 bps to 49.5%. Revenue was down 12.3%, as price/mix (+1.5%) was offset by a 13.8% decline in consumables volume mainly due to the continued impact of illicit single-use vapes which we estimate to be more than 50% of the total Vapour market;

–	Modern Oral, where revenue increased by 384%, driven by higher volume (up 206%) following the successful national roll-out of Velo Plus, with Velo category volume share almost doubling, up 6.8 ppts to 13.2%1; and

–	Traditional Oral, where revenue declined 0.4%, as price/mix (+9.1%) was more than offset by lower volume (down 9.5%) due to the continued cross-category use of Modern Oral.

1.	Please refer to page 40.

For six months to 30 June 2025	Reported			Adj.	Exchange	Adjusted
	Current					Constant
	£m	vs 2024		£m	£m	£m	vs 2024
Profit from Operations	2,255	+27.1%		808	87	3,150	+3.2%
Operating Margin	41.5%	+8.5 ppts				56.5%	-30 bps

–	Reported revenue down 2.2%, up 3.5% at constant rates.

–	New Category revenue declined 0.8%, but up 1.3% at constant rates of exchange.

–	Resilient combustibles revenue performance - down 3.5% due to currency, being an increase of 2.8% at constant rates of exchange driven by price/mix.

–	Combustibles volume share down 30 bps and value share down 80 bps.

–	Multi-category region with smokeless now representing 19.9% of revenue.

For six months to 30 June 2025	Volume			Revenue
	Reported			Reported
				Current		Exchange	Constant
	Unit	vs 2024		£m	vs 2024	£m	£m	vs 2024
New Categories				832	-0.8%	17	849	+1.3%
Vapour (units mn)	112	-7.3%		267	-11.4%	7	274	-9.1%
HP (sticks bn)	3.9	-8.3%		218	-7.4%	5	223	-4.8%
Modern Oral (pouches bn)	3.3	+24.9%		347	+14.7%	5	352	+16.5%
Traditional Oral (stick eq bn)	0.3	-16.8%		21	+11.4%	(1)	20	+10.1%
Total Smokeless				853	-0.6%	16	869	+1.5%
Total Combustibles (bn sticks)	115	-4.0%		3,216	-3.5%	211	3,427	+2.8%
Other				212	+15.2%	22	234	+26.4%
Total				4,281	-2.2%	249	4,530	+3.5%

–	Higher revenue from combustibles (up 2.8%), largely driven by higher volume and pricing in both Brazil and Türkiye. These factors combined with robust pricing in Romania and Poland to more than offset a reduction in revenue in Canada; and

–

Modern Oral, where we are category leaders, with volume up 24.9%. Revenue grew 16.5%, while volume share of the Modern Oral category was down 30 bps. The volume and revenue growth reflects the strength of our portfolio in both established oral markets across Scandinavia and markets that are more recent adopters of Modern Oral, such as the UK, Austria and Switzerland.

–

Lower revenue from Vapour (down 9.1%), largely driven by lower revenue in Canada (due to the continued  lack of enforcement against illegal flavoured vapour products) and evolving market dynamics (in the UK and France). Our value share leadership was up 30 bps with gains in Europe partly offset by value share loss in Canada; and

–	HP (down 4.8%), as higher revenue in Poland and Portugal was more than offset by declines in the Czech Republic, Germany and Romania partly due to the prioritisation of resource allocation ahead of the wider roll-out of glo Hilo.

For six months to 30 June 2025	Reported			Adj.	Exchange	Adjusted			Adjusted for Canada1
	Current					Constant			Constant
	£m	vs 2024		£m	£m	£m	vs 2024		vs 2024
Profit from Operations	1,969	+33.6%		-495	76	1,550	+4.3%		+10.4%
Operating Margin	46.0%	+12.3 ppts				34.2%	+20 bps		+1.9 ppts

1.	Adjusted for Canada excludes the performance of the Canadian business (excluding New Categories)

–	Excluding the impact of foreign exchange, adjusting items and also adjusting for the performance of Canada, adjusted profit from operations was up 10.4% to £1,386 million, driven by an improved financial performance in:

–	Brazil, due to combustibles with higher volume and pricing;

–	Romania, due to pricing in combustibles;

–	Türkiye, due to the revenue performance in combustibles; and

–	An improved financial performance across our New Categories, notably in Modern Oral (driven by Sweden, the UK, Switzerland and Norway), and a reduction in losses in HP (in Germany, Switzerland and Poland) driven by resource allocation.

–	Reported revenue declined 8.9%, being a decrease of 4.8% at constant rates.

–	New Category revenue up 0.4%, or 2.5% at constant rates of exchange, driven by HP in Japan.

–	Headwinds to volume and financial performance due to regulatory and fiscal challenges in Australia and Bangladesh.

–	Combustibles value share down 20 bps with volume share down 10 bps..

–	Smokeless now represents 12.0% of total revenue.

For six months to 30 June 2025	Volume			Revenue
	Reported			Reported
				Current		Exchange	Constant
	Unit	vs 2024		£m	vs 2024	£m	£m	vs 2024
New Categories				283	+0.4%	7	290	+2.5%
Vapour (units mn)	18	-33.4%		36	-40.5%	1	37	-38.4%
HP (sticks bn)	6.2	+8.7%		226	+10.1%	5	231	+12.3%
Modern Oral (pouches bn)	0.6	+15.1%		21	+29.7%	1	22	+32.7%
Traditional Oral (stick eq bn)	—	—%		—	—%	—	—	—%
Total Smokeless				283	+0.4%	7	290	+2.5%
Total Combustibles (bn sticks)	98	-14.1%		1,971	-12.0%	93	2,064	-7.9%
Other				102	+63.1%	6	108	+73.0%
Total				2,356	-8.9%	106	2,462	-4.8%

–	HP, largely driven by Japan and Kazakhstan; and

–	Modern Oral, fuelled by robust growth from Global Travel Retail and a performance that further demonstrates Modern Oral's potential in Emerging Markets.

For six months to 30 June 2025	Reported			Adj.	Exchange	Adjusted
	Current					Constant
	£m	vs 2024		£m	£m	£m	vs 2024
Profit from Operations	845	-16.3%		12	42	899	-12.3%
Operating Margin	35.9%	-3.2 ppts				36.5%	-3.1 ppts

–	Australia due to continued increases in the illicit segment which we estimate now accounts for more than 50% of the combustibles industry volume, with the duty paid combustibles industry volume down more than 30% in 2025; and

–	Bangladesh, driven by the increase in excise and minimum price in January 2025, necessitating an increase in consumer prices by 20-30%, which has resulted in a reduction in the duty paid combustibles industry volume by an estimated 27%.

–	Continued value share* leadership (in tracked channels) despite flat performance.

–	Vapour revenue down 15.3% or 13.0% (at constant rates), with volume down 12.9%, impacted by illicit products in the U.S. and Canada and evolving market dynamics (in the UK and France).

–	In Europe, Vapour value share up 30 bps, with industry rechargeable closed systems back in growth.

–	Vuse Ultra, our new premium product, continues to be rolled out in H2 2025, with expected acceleration in vapour revenue.

–

The U.S., the world's largest Vapour market, where Group volume was down 13.8% mainly due to the continued proliferation of illicit single-use vapes and inventory movements.  Accordingly, revenue was down 14.5% (or 12.3% on a constant currency basis). The Group maintained leadership in value share (of Vapour closed systems consumables in tracked channels) despite a decline in value share of 20 bps to 49.5%.

–

AME, where revenue declined 11.4% (or 9.1% on a constant currency basis), largely driven by lower revenue in Canada (due to the continued  lack of enforcement against illegal flavoured vapour products) and evolving market dynamics (in the UK and France). Our value share leadership was up 30 bps with gains in Europe partly offset by value share loss in Canada; and

–

APMEA, where volume declined 33.4%, leading to a 40.5% reduction in revenue (being down 38.4% at constant rates), largely driven by the Group exiting the category in a number of markets (including Malaysia, Japan and Saudi Arabia) and a change in competitive dynamics in other markets (such as South Africa and New Zealand).

*	Based on Vuse estimated value share in measured retail for Vapour (i.e., value share of rechargeable closed systems consumables and disposables sales in retail) in the Top global markets**.

**	Top Vapour markets are defined as the Top markets by industry revenue, being the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024.

–	Revenue up 0.8%, or 3.1% at constant rates, driven by Quality Growth focus in largest profit pools.

–	Volume share ***, down 70 bps, impacted by competitive pressure in Japan and phase-out of legacy super-slims.

–	AME volume share down 10 bps with growth in Poland and the Czech Republic, stable share in Italy more than offset by Germany and Romania.

–	Momentum building with successful pilot of glo Hilo ahead of phased roll-out in key markets in H2 2025, with expected acceleration in revenue.

***	Volume share is based upon the Top HP markets which are defined as the Top markets by industry revenue. Top markets are Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024.

–	Revenue up 38.1%, or 40.6% at constant rates, with volume growth of 42.2%.

–	Growth in volume share* up 3.3 ppts in Total Oral and up 4.4 ppts in Modern Oral.

–	AME volume share leadership maintained, with strong financial performances in Scandinavia and the UK.

–	Triple-digit volume and revenue growth in the U.S. following the national roll-out of Velo Plus.

*	Volume share is based uoon the Top Oral and Modern Oral markets which are defined as the Top markets by industry revenue, being the U.S., Sweden,  Denmark, Norway, Switzerland, UK and Poland, accounting for c.90% of total industry Modern Oral revenue in 2024.

–	Volume and value share down 10 bps*, growth in the U.S. more than offset by AME and APMEA.

–	Excluding currency, positive revenue and category contribution growth driven by the U.S. and AME.

–	Return to growth in the U.S., with revenue up 1.1% (or 3.8% at constant rates) as price/mix more than offset volume decline.

–	Resilient AME performance with revenue down 3.5%, or up 2.8% at constant rates, driven by Brazil, Türkiye and Romania.

–	APMEA revenue declined 12.0%, or 7.9% at constant rates, impacted by Australia and Bangladesh with volume down 14.1%.

–

In the U.S., revenue increased 3.8%, as price/mix (+11.4%) more than offset a 7.6% reduction in volume. While this was marginally lower than the industry volume decline of 8.3%, our volume was negatively impacted in 2024 by the phasing of wholesaler inventory. Our volume share was up 10 bps and value share was up 20 bps following the actions taken in 2024 to improve performance;

–	In AME, higher revenue (up 2.8%) was largely driven by higher volume and pricing in both Brazil and Türkiye. These factors combined with robust pricing in Romania and Poland to more than offset a reduction in revenue in Canada; and

–	In APMEA, revenue declined 7.9% due to fiscal and regulatory headwinds in Australia and Bangladesh, which more than offset higher revenue in the remainder of the region, notably in Pakistan, Nigeria and Indonesia.

*	Volume and value share are based upon the Top cigarette markets which are defined as the Top cigarette markets by industry revenue, being the U.S., Japan, Brazil, Germany, Pakistan, Mexico and Romania, accounting for c.60% of total industry cigarettes revenue in 2024.

	For six months to 30 June
	2025	2024	Change
	£m	£m	%
Net cash generated from operating activities	2,309	3,165	-27.0%
	As at 30 June
	2025	2024	Change
	£m	£m	%
Borrowings (including lease liabilities)	35,208	40,158	-12.3%

–	deferral of £700 million (US$895 million) of tax payments in the U.S. from 2024 to 2025, partly offset by a deferral in 2025 from the first half of the year to the second half (£209 million / US$271 million); and

–	payment related to the Franked Investment Income Group Litigation Order (FII GLO) of £368 million. The Group will make a further payment in H2 2025 of £111 million, followed by payments of £222 million in 2026 and £43 million in 2027 (see page 36).

	As at 30 June				As at 31 December
	2025	2024	Change		2024
	£m	£m	%		£m
Borrowings (including lease liabilities)	(35,208)	(40,158)	-12.3%		(36,950)
Derivatives in respect of net debt	(27)	(130)	-79.2%		(113)
Cash and cash equivalents	4,404	5,934	-25.8%		5,297
Current investments held at fair value	489	696	-29.7%		513
Net debt	(30,342)	(33,658)	-9.9%		(31,253)
Maturity profile of net debt:
Net debt due within one year	1,573	(686)	n/m		1,545
Net debt due beyond one year	(31,915)	(32,972)	-3.2%		(32,798)
Net debt	(30,342)	(33,658)	-9.9%		(31,253)

–	Cash payments related to share schemes and investing activities of £47 million (30 June 2024: £103 million);

–	£1,052 million (30 June 2024: £1,577 million) net proceeds from the partial monetisation of our investment in ITC;

–	The purchase of £450 million (30 June 2024: £366 million) of own shares under the Group’s 2025 share buy-back programme;

–	Other non-cash movements of £120 million (30 June 2024: £619 million) with the prior year impacted by the repurchase of series of bonds in May 2024 as part of the Group's debt liability management exercise; and

–	Foreign exchange impacts related to the revaluation of foreign currency denominated net debt balances being a net tailwind of £1,611 million (30 June 2024: £269 million headwind).

	Average for the period ended					As at
	30 June			31 December		30 June			31 December
	2025	2024		2024		2025	2024		2024
Australian dollar	2.045	1.922		1.937		2.091	1.893		2.023
Bangladeshi taka	158.273	141.684		147.803		168.176	149.132		149.662
Brazilian real	7.468	6.431		6.893		7.479	7.021		7.737
Canadian dollar	1.828	1.718		1.751		1.870	1.730		1.801
Chilean peso	1,238.902	1,190.267		1,206.394		1,279.119	1,193.216		1,245.543
Euro	1.187	1.170		1.181		1.167	1.179		1.209
Indian rupee	111.763	105.275		106.952		117.521	105.410		107.223
Japanese yen	192.489	192.515		193.583		197.940	203.343		196.827
Romanian leu	5.939	5.821		5.877		5.929	5.870		6.018
South African rand	23.859	23.692		23.423		24.353	23.082		23.633
Swiss franc	1.118	1.125		1.125		1.091	1.136		1.135
US dollar	1.298	1.265		1.278		1.370	1.264		1.252

–	Competition from illicit trade;

–	Geopolitical tensions;

–	Tobacco, New Categories and other regulation interrupts the growth strategy;

–	Supply chain disruption;

–	Litigation and external investigations;

–	Significant increases or structural changes in tobacco, nicotine and New Categories related taxes;

–	Inability to develop, commercialise and deliver the New Categories strategy;

–	Disputed taxes, interest and penalties;

–	Injury, illness or death in the workplace;

–	Solvency and liquidity;

–	Foreign exchange rate exposures;

–	Climate change;

–	Circularity; and

–	Cyber security.

–	Karen Guerra joined the Remuneration Committee and stepped down from the Audit Committee with effect from 10 February 2025;

–	Michael Dijanosic, Regional Director, Asia Pacific, Middle East and Africa (APMEA) will step down from his role and from the Management Board on 31 December 2025; and

–	Pascale Meulemeester will be appointed as Regional Director Designate (APMEA), with effect from 1 September 2025 and then as Regional Director, APMEA, and a member of the Management Board with effect from 1 January 2026.

	Page
Financial Statements:
Group Income Statement	17
Group Statement of Comprehensive Income	18
Group Statement of Changes in Equity	19
Group Balance Sheet	21
Group Cash Flow Statement	22
Notes to the Unaudited Interim Financial Statements	23
Other Information	40
Data Lake and Reconciliations	47

	Six months ended 30 June
	2025	2024
	£m	£m
Revenue1	12,069	12,340
Raw materials and consumables used	(2,166)	(2,304)
Changes in inventories of finished goods and work in progress	185	140
Employee benefit costs	(1,463)	(1,375)
Depreciation, amortisation and impairment costs	(1,192)	(1,620)
Other operating income	54	223
Loss on reclassification from amortised cost to fair value	(5)	(4)
Other operating expenses	(2,413)	(3,142)
Profit from operations	5,069	4,258
Net finance costs	(969)	(305)
Share of post-tax results of associates and joint ventures	1,474	1,647
Profit before taxation	5,574	5,600
Taxation on ordinary activities	(1,009)	(1,041)
Profit for the period	4,565	4,559
Attributable to:
Owners of the parent	4,512	4,492
Non-controlling interests	53	67
	4,565	4,559
Earnings per share
Basic	204.6p	201.1p
Diluted	203.6p	200.3p

1.	Revenue is net of duty, excise and other taxes of £15,515 million and £16,509 million for the six months ended 30 June 2025 and 30 June 2024, respectively.

	Six months ended 30 June
	2025	2024
	£m	£m
Profit for the period (page 17)	4,565	4,559
Other comprehensive income
Items that may be reclassified subsequently to profit or loss:	(4,255)	(19)
Foreign currency translation and hedges of net investments in foreign operations
– differences on exchange from translation of foreign operations	(4,360)	(123)
– net investment hedges - net fair value gains/(losses) on derivatives	221	(7)
– net investment hedges - differences on exchange on borrowings	(13)	8
Cash flow hedges
– net fair value (losses)/gains	(45)	51
– reclassified and reported in profit for the period	23	17
– tax on net fair value (losses)/gains in respect of cash flow hedges	7	(23)
Associates
– share of OCI, net of tax	(135)	15
– differences on exchange reclassified to profit or loss	47	43
Items that will not be reclassified subsequently to profit or loss:	(6)	50
Retirement benefit schemes
– net actuarial (losses)/gains	(37)	21
– movements in surplus restrictions	(39)	(24)
– tax on actuarial (losses)/gains and movements in surplus restrictions	5	1
Investments held at fair value
– net fair value gains	70	—
Associates – share of OCI, net of tax	(5)	52
Total other comprehensive (expense)/income for the period, net of tax	(4,261)	31
Total comprehensive income for the period, net of tax	304	4,590
Attributable to:
Owners of the parent	279	4,526
Non-controlling interests	25	64
	304	4,590

At 30 June 2025	Attributable to owners of the parent
	Share capital	Share premium, capital redemption and merger reserves	Other reserves	Retained earnings	Total attributable to owners of parent	Perpetual hybrid bonds	Non-controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2025	585	26,665	(902)	21,610	47,958	1,685	352	49,995
Total comprehensive (expense)/income for the period comprising: (page 18)	—	—	(4,160)	4,439	279	—	25	304
Profit for the period (page 17)	—	—	—	4,512	4,512	—	53	4,565
Other comprehensive expense for the period  (page 18)	—	—	(4,160)	(73)	(4,233)	—	(28)	(4,261)
Other changes in equity
Cash flow hedges reclassified and reported in total assets	—	—	5	—	5	—	—	5
Employee share options
–value of employee services	—	—	—	35	35	—	—	35
–proceeds from new shares issued	—	1	—	—	1	—	—	1
–treasury shares used for share option schemes	—	1	—	(1)	—	—	—	—
Dividends and other appropriations
–ordinary shares	—	—	—	(2,609)	(2,609)	—	—	(2,609)
–to non-controlling interests	—	—	—	—	—	—	(74)	(74)
Purchase of own shares
–held in employee share ownership trusts	—	—	—	(61)	(61)	—	—	(61)
–share buy-back programme and cancelled shares	(4)	4	—	(450)	(450)	—	—	(450)
Other movements	—	—	—	31	31	—	—	31
Balance at 30 June 2025	581	26,671	(5,057)	22,994	45,189	1,685	303	47,177

At 30 June 2024	Attributable to owners of the parent
	Share capital	Share premium, capital redemption and merger reserves	Other reserves	Retained earnings	Total attributable to owners of parent	Perpetual hybrid bonds	Non-controlling interests	Total equity
	£m	£m	£m	£m	£m	£m	£m	£m
Balance at 1 January 2024	614	26,630	(894)	24,531	50,881	1,685	368	52,934
Total comprehensive income for the period comprising: (page 18)	—	—	36	4,490	4,526	—	64	4,590
Profit for the period (page 17)	—	—	—	4,492	4,492	—	67	4,559
Other comprehensive income/(expense)  for the period (page 18)	—	—	36	(2)	34	—	(3)	31
Other changes in equity
Cash flow hedges reclassified and reported in total assets	—	—	11	—	11	—	—	11
Employee share options
–value of employee services	—	—	—	30	30	—	—	30
–proceeds from new shares issued	—	4	—	—	4	—	—	4
Dividends and other appropriations
–ordinary shares	—	—	—	(2,603)	(2,603)	—	—	(2,603)
–to non-controlling interests	—	—	—	—	—	—	(74)	(74)
Purchase of own shares
–held in employee share ownership trusts	—	—	—	(93)	(93)	—	—	(93)
–share buy-back programme and cancelled shares, including treasury shares	(25)	25	—	(366)	(366)	—	—	(366)
Other movements	—	—	—	36	36	—	—	36
Balance at 30 June 2024	589	26,659	(847)	26,025	52,426	1,685	358	54,469

	As at 30 June			As at 31 December
	2025	2024		2024
	£m	£m		£m
Assets
Intangible assets	86,223	94,700		94,276
Property, plant and equipment	4,159	4,427		4,379
Investments in associates and joint ventures	1,533	1,937		1,902
Retirement benefit assets	841	940		937
Deferred tax assets	2,434	953		2,573
Trade and other receivables	283	318		282
Investments held at fair value	737	122		146
Derivative financial instruments	141	100		110
Total non-current assets	96,351	103,497		104,605
Inventories	5,088	5,334		4,616
Income tax receivable	108	100		67
Trade and other receivables	3,475	3,637		3,604
Investments held at fair value	489	696		513
Derivative financial instruments	302	159		186
Cash and cash equivalents	4,404	5,934		5,297
	13,866	15,860		14,283
Assets classified as held-for-sale	9	12		11
Total current assets	13,875	15,872		14,294
Total assets	110,226	119,369		118,899
Equity – capital and reserves
Share capital	581	589		585
Share premium, capital redemption and merger reserves	26,671	26,659		26,665
Other reserves	(5,057)	(847)		(902)
Retained earnings	22,994	26,025		21,610
Owners of the parent	45,189	52,426		47,958
Perpetual hybrid bonds	1,685	1,685		1,685
Non-controlling interests	303	358		352
Total equity	47,177	54,469		49,995
Liabilities
Borrowings	31,904	32,852		32,638
Retirement benefit liabilities	769	852		820
Deferred tax liabilities	10,432	11,878		11,679
Other provisions for liabilities	3,212	271		4,071
Trade and other payables	586	788		685
Derivative financial instruments	150	217		268
Total non-current liabilities	47,053	46,858		50,161
Borrowings	3,304	7,306		4,312
Income tax payable	1,172	1,184		1,681
Other provisions for liabilities	3,089	416		3,044
Trade and other payables	8,243	9,017		9,550
Derivative financial instruments	188	119		156
Total current liabilities	15,996	18,042		18,743
Total equity and liabilities	110,226	119,369		118,899

	Six months ended 30 June
	2025	2024
	£m	£m
Cash flows from operating activities
Cash generated from operating activities (page 31)	3,717	4,122
Dividends received from associates	168	196
Tax paid	(1,576)	(1,153)
Net cash generated from operating activities	2,309	3,165
Cash flows from investing activities
Interest received	85	84
Purchases of property, plant and equipment	(103)	(116)
Proceeds on disposal of property, plant and equipment	21	50
Purchases of intangibles	(42)	(31)
Proceeds on disposal of intangibles	8	—
Purchases of investments	(59)	(206)
Proceeds on disposals of investments	73	99
Investment in associates and acquisitions of other subsidiaries net of cash acquired	(23)	(24)
Net proceeds from disposal of shares in associate, net of tax	1,052	1,577
Net cash generated from investing activities	1,012	1,433
Cash flows from financing activities
Interest paid on borrowings and financing related activities	(879)	(889)
Interest element of lease liabilities	(21)	(18)
Capital element on lease liabilities	(95)	(83)
Proceeds from increases in and new borrowings	3,552	2,370
Reductions in and repayments of borrowings	(3,047)	(1,502)
Outflows relating to derivative financial instruments	(445)	(115)
Purchases of own shares - share buy-back programme	(450)	(366)
Purchases of own shares held in employee share ownership trusts	(61)	(93)
Dividends paid to owners of the parent	(2,609)	(2,605)
Dividends paid to non-controlling interests	(63)	(62)
Other	1	5
Net cash used in financing activities	(4,117)	(3,358)
Net cash flows (used in)/generated from operating, investing and financing activities	(796)	1,240
Differences on exchange	(144)	(63)
(Decrease)/increase in net cash and cash equivalents in the year	(940)	1,177
Net cash and cash equivalents at 1 January	5,104	4,517
Net cash and cash equivalents at period end	4,164	5,694
Cash and cash equivalents per balance sheet	4,404	5,934
Overdrafts and accrued interest	(240)	(240)
Net cash and cash equivalents at period end	4,164	5,694

Six months ended 30 June	2025						2024
	Reported			Exchange	Reported at CC2		Reported
Revenue1	£m			£m	£m		£m
U.S.	5,432			143	5,575		5,378
AME	4,281			249	4,530		4,376
APMEA	2,356			106	2,462		2,586
Total Region	12,069			498	12,567		12,340

1.	There are no adjusting items within revenue.

2.	CC: constant currency – measures are calculated based upon a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments.

Six months ended 30 June	2025
	Reported	Adj Items1	Adjusted	Exchange	Adjusted at CC2	Canada at CC2	As adj. for Canada3 at CC2
	£m	£m	£m	£m	£m	£m	£m
Profit from Operations
U.S.	2,255	808	3,063	87	3,150	—	3,150
AME	1,969	(495)	1,474	76	1,550	(164)	1,386
APMEA	845	12	857	42	899	—	899
Total Region	5,069	325	5,394	205	5,599	(164)	5,435
Net finance costs	(969)
Associates and joint ventures	1,474
Profit before tax	5,574
Taxation	(1,009)
Profit for the period	4,565

Six months ended 30 June	2024
	Reported	Adj Items1	Adjusted			Adj for Canada3	As adjusted for Canada3
	£m	£m	£m			£m	£m
Profit from Operations
U.S.	1,775	1,278	3,053			—	3,053
AME	1,473	14	1,487			(232)	1,255
APMEA	1,010	14	1,024			—	1,024
Total Region	4,258	1,306	5,564			(232)	5,332
Net finance costs	(305)
Associates and joint ventures	1,647
Profit before tax	5,600
Taxation	(1,041)
Profit for the period	4,559

1.	Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence.

2.	CC: constant currency – measures are calculated based upon a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments.

3.	As adjusted for Canada excludes the performance of the Canadian business (excluding New Categories).

	Six months ended 30 June
	2025	2024
	£m	£m
(a)   Restructuring and integration costs	13	—
(b)   Amortisation and impairment of trademarks and similar intangibles	804	1,295
(b)   Impairment of goodwill	72	—
(c)   Romania other taxes	(22)	—
(c)   Credit in respect of settlement of historical litigation in relation to the Fox River	—	(132)
(c)   Charges in respect of DOJ and OFAC investigations	—	4
(c)   Other adjusting items (including Engle)	30	133
(d)   Changes in provision in relation to Canada Approved Plans	(575)	—
Charges in connection with disposal of an associate	3	6
Total adjusting items included in profit from operations	325	1,306

–	A credit of £22 million (30 June 2024: £nil million) in respect of the partial release of a provision recognised in December 2024 in relation to an excise assessment of activities undertaken in the Ploiesti factory in Romania; and

–	Other costs of £30 million (30 June 2024: £133 million), mainly related to litigation costs including Engle progeny cases.

–	Transactional foreign exchange losses arising from revaluation of locally held cash balances and dividend receivables, as well as fair value movements in respect of derivatives and investments;

–	Partially offset by higher interest expense. The Group's average cost of debt has increased to 5.1% (compared to 4.9% at 30 June 2024; excluding adjusting items, being a  £28 million fair value loss on debt-related derivatives, the average cost of debt was 5.3% in 2024); and

–	Higher interest income, driven by higher local deposits and higher interest rates in Brazil and Türkiye, partially offset by the impact of reduced interest rates on interest income earned on cash held in Canada.

–	A gain of £333 million in respect of the demerger of the hotels division of the Group's Indian associate ITC described on page 28 and offset by:

–	A lower provisional gain arising on the partial sale of the Group's investment in ITC in 2025 (£904 million) compared to £1,361 million in 2024 due to a lower number of shares disposed of (2025: 313.0 million shares; 2024: 436.9 million shares) as discussed on page 28; and

–	A credit in 2024, that did not repeat in 2025 of £590 million related to the debt liability management exercise (see page 27).

	Six months ended 30 June
	2025	2024
	£m	£m
Earnings attributable to owners of the parent	4,512	4,492
Coupon on perpetual hybrid bonds	(29)	(28)
Tax on coupon on perpetual hybrid bonds	7	7
Earnings	4,490	4,471

		Reported			Adjusted			Headline
		Basic	Diluted		Basic	Diluted		Basic	Diluted
Six months to 30 June 2025
– Earnings	£m	4,490	4,490		3,573	3,573		3,698	3,698
– Shares	m	2,194	2,205		2,194	2,205		2,194	2,205
– Per share	p	204.6	203.6		162.9	162.0		168.5	167.7
Six months to 30 June 2024
– Earnings	£m	4,471	4,471		3,779	3,779		3,500	3,500
– Shares	m	2,223	2,232		2,223	2,232		2,223	2,232
– Per share	p	201.1	200.3		170.0	169.3		157.5	156.8

	Six months ended 30 June
	2025	2024
	pence	pence
Diluted earnings per share	203.6	200.3
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles	31.4	44.5
Effect of settlement of historical litigation in relation to the Fox River	—	(5.0)
Effect of the changes in provision in relation to the Approved Plans in Canada	(19.1)	—
Effect of partial disposal of an associate	0.1	0.3
Effect of Romania other taxes	(1.0)	—
Effect of charges in respect of DOJ and OFAC investigations	—	0.2
Effect of restructuring and integration costs	0.2	—
Effect of other adjusting items in operating profit	1.2	4.6
Effect of adjusting items in net finance costs	3.4	(17.4)
Effect of gains related to the partial divestment of shares held in ITC1	(41.0)	(61.1)
Tax associated with the partial divestment of shares held in ITC and hotels business demerger1	1.6	1.6
Effect of associates’ adjusting items	(15.3)	(0.3)
Effect of adjusting items in respect of deferred taxation	(2.8)	(5.9)
Adjusting items in tax	(0.3)	7.5
Adjusted diluted earnings per share	162.0	169.3
Impact of translational foreign exchange	7.1	—
Adjusted diluted earnings per share translated at 2024 exchange rates	169.1	169.3

1.	The 2025 values of the gains related to the partial divestment of shares held in ITC and associated tax  are provisional.

	Six months ended 30 June
	2025	2024
	pence	pence
Diluted earnings per share	203.6	200.3
Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax)	3.0	16.8
Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax)	(0.8)	(1.4)
Issue of shares and change in shareholding of an associate	(0.1)	(0.3)
Gain on partial disposal of an associate and associated capital gains tax, including foreign exchange recycled	(38.0)	(58.6)
Diluted headline earnings per share	167.7	156.8

	Six months ended 30 June
	2025	2024
	£m	£m
Earnings	4,490	4,471
Effect of impairment of intangibles, property, plant and equipment, associates and held-for-sale assets (net of tax)	68	373
Effect of gains on disposal of property, plant and equipment, trademarks, held-for-sale assets, partial/full termination of IFRS 16 leases, and sale and leaseback (net of tax)	(17)	(31)
Issue of shares and change in shareholding of an associate	(2)	(6)
Gain on partial disposal of an associate and associated capital gains tax, including foreign exchange recycled	(841)	(1,307)
Headline earnings	3,698	3,500

	Six months ended 30 June
	2025	2024
	£m	£m
Profit for the period	4,565	4,559
Taxation on ordinary activities	1,009	1,041
Share of post-tax results of associates and joint ventures	(1,474)	(1,647)
Net finance costs	969	305
Profit from operations	5,069	4,258
Adjustments for:
– depreciation, amortisation and impairment costs	1,192	1,620
– increase in inventories	(696)	(606)
– increase in trade and other receivables	(1)	(268)
– decrease in Master Settlement Agreement payable	(633)	(868)
– (decrease)/increase in trade and other payables	(565)	321
– decrease in retirement benefit liabilities	(27)	(17)
– decrease in other provisions for liabilities	(634)	(302)
– other non-cash items	12	(16)
Cash generated from operating activities	3,717	4,122
Dividends received from associates	168	196
Tax paid	(1,576)	(1,153)
Net cash generated from operating activities	2,309	3,165

–	largely due to lower net proceeds from the partial monetisation of our investment in ITC (30 June 2025: £1,052 million; 30 June 2024: £1,577 million);

–	partly offset by a net inflow of £14 million (compared to a net outflow of £107 million in the six months ended 30 June 2024) from short-term investment products, including treasury bills.

–	The payment of the dividend of £2,609 million (30 June 2024: £2,605 million);

–	Interest paid in the period of £879 million (30 June 2024: £889 million), as higher interest charges in line with the increase in the Group's average cost of debt were offset by lower net borrowings and foreign exchange tailwinds;

–	The lower net inflow from issuance of borrowings in 2025 of £505 million (30 June 2024: £868 million);

–	An outflow of £445 million related to derivatives (30 June 2024: outflow of £115 million); and

–	An outflow of £450 million (30 June 2024: £366 million) in respect of the share buy-back programme.

		As at 30 June			As at 31 December
		2025	2024		2024
		£m	£m		£m
Supplier Financing Arrangements
Total	Amounts available for financing reported within trade payables	115			180
	Amounts accepted by financial institutions for early financing	100			179
	Amounts for which suppliers have received payment	80			157
Analysed as:
Leaf payables	Amounts available for financing reported within trade payables	—			90
	Amounts accepted by financial institution for early financing	—			90
	Amounts for which suppliers have received payment	—			84
Other payables	Amounts available for financing reported within trade payables	115			90
	Amounts accepted by financial institution for early financing	100			89
	Amounts for which suppliers have received payment	80			73

–	In March 2025, the Group repaid a €650 million bond at maturity and accessed the US dollar market under the SEC Shelf Programme, raising a total of US$2.5 billion across three tranches; and

–	In June 2025, the Group repaid two bonds totalling an aggregate amount of US$3.0 billion at maturity.

–	Level 1 financial instruments are traded in an active market and fair value is based on quoted prices at the period end.

–	Level 2 financial instruments are not traded in an active market, but the fair values are based on quoted market prices, broker/dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The Group’s level 2 financial instruments include OTC derivatives.

–

The fair values of level 3 financial instruments have been determined using a valuation technique where at least one input (which could have a significant effect on the instrument's valuation) is not based on observable market data. The Group’s level 3 financial instruments primarily consist of an equity investment in an unquoted entity, interest free loans and other treasury products which are valued using the discounted cash flows of estimated future cash flows.

	As at 30 June			As at 31 December
	2025	2024		2024
	£m	£m		£m
Assets at fair value
Derivatives relating to
– interest rate swaps	59	5		11
– cross-currency swaps	110	93		100
– forward foreign currency contracts	274	161		185
Assets at fair value	443	259		296
Liabilities at fair value
Derivatives relating to
– interest rate swaps	117	227		270
– cross-currency swaps	14	10		16
– forward foreign currency contracts	207	82		131
– embedded derivative relating to associates	—	17		7
Liabilities at fair value	338	336		424

–	£479 million in 2025 (of which £368 million was paid in the first six months of 2025);

–	£222 million in 2026; and

–	£43 million in 2027.

–	US$6.89 billion of outstanding bonds issued by B.A.T Capital Corporation (BATCAP) in connection with the acquisition of Reynolds American, including registered bonds issued in exchange for the initially issued bonds (the 2017 Bonds);

–

US$10.12 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on 17 July 2019, and US$8.80 billion of outstanding bonds issued by BATCAP pursuant to the Shelf Registration Statement on Form F-3 filed on 1 July 2022 pursuant to which BATCAP, BATIF or the Company may issue an indefinite amount of debt securities; and

–

US$2.50 billion of outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on 17 July 2019, and US$1.00 billion of outstanding bonds issued by BATIF pursuant to the Shelf Registration Statement on Form F-3 filed on 1 July 2022 pursuant to which BATCAP, BATIF or the Company may issue an indefinite amount of debt securities.

a.	British American Tobacco p.l.c. (as the parent guarantor), referred to as ‘BAT p.l.c.’ in the financials below;

b.	B.A.T Capital Corporation (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATCAP’ in the financials below;

c.	B.A.T. International Finance p.l.c. (as an issuer or a subsidiary guarantor, as the case may be), referred to as ‘BATIF’ in the financials below;

d.	B.A.T. Netherlands Finance B.V. (as a subsidiary guarantor), referred to as ‘BATNF’ in the financials below;

e.	Reynolds American Inc. (as a subsidiary guarantor), referred to as ‘RAI’ in the financials below; and

f.	British American Tobacco Holdings (The Netherlands) B.V. (as a subsidiary guarantor of the 2017 Bonds only), referred to as ‘BATHTN’ in the financials below.

Six months ended 30 June 2025	BAT p.l.c.	BATCAP	BATIF	BATNF	RAI	BATHTN
	£m	£m	£m	£m	£m	£m
Income Statement
Revenue	—	—	—	—	—	—
(Loss)/profit from operations	(11)	(1)	3	—	—	2
Dividend income	—	—	1	—	3,441	—
Net finance income/(costs)	249	(22)	128	—	(289)	(2)
Profit/(loss) before taxation	238	(23)	132	—	3,152	—
Taxation on ordinary activities	—	6	2	—	67	1
Profit/(loss) for the period	238	(17)	134	—	3,219	1
Intercompany transactions - Income Statement
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income	(12)	—	—	—	17	—
Transactions with non-issuer/non-guarantor subsidiaries net finance income	170	394	442	—	11	—
Dividend income from non-issuer/non-guarantor subsidiaries	—	—	—	—	3,441	—
Six months ended 30 June 2024	BAT p.l.c.	BATCAP	BATIF	BATNF	RAI	BATHTN
	£m	£m	£m	£m	£m	£m
Income Statement
Revenue	—	—	—	—	—	—
(Loss)/profit from operations	(10)	(1)	(12)	—	(1)	1
Dividend income	—	—	—	—	2,519	—
Net finance income/(costs)	285	(19)	794	—	(233)	(32)
Profit/(loss) before taxation	275	(20)	782	—	2,285	(31)
Taxation on ordinary activities	—	(26)	(6)	—	55	(90)
Profit/(loss) for the period	275	(46)	776	—	2,340	(121)
Intercompany transactions - Income Statement
Transactions with non-issuer/non-guarantor subsidiaries (expense)/income	(3)	—	—	—	11	—
Transactions with non-issuer/non-guarantor subsidiaries net finance income	187	161	739	—	12	—
Dividend income from non-issuer/non-guarantor subsidiaries	—	—	—	—	2,519	—

As at 30 June 2025	BAT p.l.c.	BATCAP	BATIF	BATNF	RAI	BATHTN
	£m	£m	£m	£m	£m	£m
Balance Sheet
Non-current assets	1,917	19,206	2,200	1,408	252	6
Current assets	6,926	18,602	45,669	19	1,025	10
Non-current liabilities	1,576	18,753	10,744	1,408	8,584	1
Non-current borrowings	1,571	18,646	10,536	1,408	8,540	—
Other non-current liabilities	5	107	208	—	44	1
Current liabilities	68	19,060	33,016	18	1,377	130
Current borrowings	33	19,033	32,533	18	115	3
Other current liabilities	35	27	483	—	1,262	127
Intercompany transactions - Balance Sheet
Amounts due from non-issuer/non-guarantor subsidiaries	6,823	14,036	50,122	—	1,232	11
Amounts due to non-issuer/non-guarantor subsidiaries	4	1,810	34,142	—	1	2
Investment in subsidiaries (that are not issuers or guarantors)	27,234	—	718	—	23,451	1,519
As at 31 December 2024	BAT p.l.c.	BATCAP	BATIF	BATNF	RAI	BATHTN
	£m	£m	£m	£m	£m	£m
Balance Sheet
Non-current assets	1,917	18,996	2,292	1,358	292	77
Current assets	9,736	18,504	46,197	48	1,221	15
Non-current liabilities	1,577	18,503	11,526	1,358	7,707	20
Non-current borrowings	1,571	18,257	11,227	1,358	7,657	—
Other non-current liabilities	6	246	299	—	50	20
Current liabilities	72	19,010	32,984	47	3,257	129
Current borrowings	37	18,967	32,708	46	1,751	1
Other current liabilities	35	43	276	1	1,506	128
Intercompany transactions - Balance Sheet
Amounts due from non-issuer/non-guarantor subsidiaries	9,690	15,082	50,595	—	1,478	15
Amounts due to non-issuer/non-guarantor subsidiaries	2	3,942	32,707	—	2	1
Investment in subsidiaries (that are not issuers or guarantors)	27,234	—	718	—	25,659	1,466

	As at 30 June			As at 31 December
	2025	2024		2024
	£m	£m		£m
Total Equity	34,433	33,665		37,238
Share capital	581	589		585
Share premium	123	119		121
Perpetual hybrid bonds	1,685	1,685		1,685
Other Equity	32,044	31,272		34,848

	Equivalent to one cigarette
Factory-made cigarettes (FMC)	1 stick
Heated sticks	1 heat stick
Cigars	1 cigar (regardless of size)
Oral
– Pouch	1 pouch
– Moist Snuff	2.8 grams
– Dry Snuff	2.0 grams
– Loose leaf, plug, twist	7.1 grams
Pipe tobacco	0.8 grams
Roll-your-own	0.8 grams
Make-your-own
– Expanded tobacco	0.5 grams
– Optimised tobacco	0.7 grams
Vapour	No conversion to a stick equivalent

Dividends paid	For the six months to 30 June 2025
	Pence per share	US$ per ADS
Quarterly Payment paid February 2025	58.88	0.7304350
Quarterly Payment paid May 2025	60.06	0.8022210
	118.94	1.5326560

Event	Payment No. 2	Payment No. 3	Payment No. 4
Preliminary announcement (includes declaration data required for JSE purposes)	13 February
Publication of finalisation information (JSE)	17 June	22 September	15 December
No removal requests permitted (in either direction) between the UK main register and the South Africa branch register	17-27 June	22 September- 3 October	15-30 December
Last Day to Trade (LDT) cum-dividend (JSE)	24 June	30 September	23 December
Shares commence trading ex-dividend (JSE)	25 June	1 October	24 December
No transfers permitted between the UK main register and the South Africa branch register	25-27 June	1-3 October	24-30 December
No shares may be dematerialised or rematerialised on the South Africa branch register	25-27 June	1-3 October	24-30 December
Shares commence trading ex-dividend (LSE)	26 June	2 October	29 December
Shares commence trading ex-dividend (NYSE)	27 June	3 October	30 December
Record date (JSE, LSE and NYSE)	27 June	3 October	30 December
Last date for receipt of Dividend Reinvestment Plan (DRIP)	11 July	17 October	14 January 2026
Payment date (LSE and JSE)	1 August	7 November	4 February 2026
ADS payment date (NYSE)	6 August	13 November	9 February 2026

1.	All dates are 2025, unless otherwise stated.

2.	The dates set out above may be subject to any changes to public holidays arising and changes or revisions to the LSE, JSE and NYSE timetables. Any confirmed changes to the dates will be announced.

3.	JSE finalisation information published on 17 June 2025 can be found on the BAT website, www.bat.com.

Event	Payment No. 1	Payment No. 2	Payment No. 3	Payment No. 4
Last Day to Trade (LDT) cum-dividend (JSE)	24 March	7 July	29 September	24 December
Shares commence trading ex-dividend (JSE)	25 March	8 July	30 September	28 December
Shares commence trading ex-dividend (LSE)	26 March	9 July	1 October	29 December
Shares commence trading ex-dividend (NYSE)	27 March	10 July	2 October	30 December
Record date (JSE, LSE and NYSE)	27 March	10 July	2 October	30 December
Payment date (LSE and JSE)	7 May	14 August	6 November	4 February 2027
ADS payment date (NYSE)	12 May	19 August	12 November	9 February 2027

1.	All dates are 2026, unless otherwise stated.

2.	A complete timetable for the quarterly dividend payments for the year ending 31 December 2025 and the declared amount will be included in the Preliminary Results Announcement in February 2026.

3.	The dates set out above may be subject to any changes to public holidays arising and changes or revisions to the LSE, JSE and NYSE timetables. Any confirmed changes to the dates will be announced.

Event
Pre-close Trading Update	December 2025
Preliminary Statement 2025	12 February 2026

*	Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.

†	Our products as sold in the US, including Vuse, Velo, Grizzly, Kodiak, and Camel Snus, are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.

Term	Definition
AME	Americas (excluding U.S.) and Europe.
APMEA	Asia Pacific, Middle East and Africa.
British American Tobacco, BAT, Group, we, us and our	When the reference denotes an opinion, this refers to British American Tobacco p.l.c. and when the reference denotes business activity, this refers to British American Tobacco Group operating companies, either collectively or individually, as the case may be.
Cigarette	Factory-made cigarettes (FMC) and products that have similar characteristics and are manufactured in the same manner, but due to specific features may not be recognised as cigarettes for regulatory, duty or similar reasons.
Circular Economy	The circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible.
Combustibles	Cigarettes and OTP.
Constant Currency/Constant rates	Presentation of results in the prior year’s exchange rate, removing the potentially distorting effect of translational foreign exchange on the Group’s results. The Group does not adjust for normal transactional gains or losses in profit from operations which are generated by exchange rate movements.
Developed Markets	As defined by the World Economic Outlook as Advanced Economies and those within the European Union.
Double Materiality Assessment/Material topic	Although financial materiality has been considered in the development of our Double Materiality Assessment (“DMA”), our DMA/Material topic and any related conclusions as to the materiality of sustainability or ESG matters do not imply that all topics discussed therein are financially material to our business taken as a whole, and such topics may not significantly alter the total mix of information available about our securities.
Emerging Markets	Those markets not defined as Developed Markets.
HP	Heated Products, including the devices, which include glo and our hybrid products, which are used to heat our consumables being the Tobacco Heated Products or Herbal Products for Heating.
Modern Oral	Includes Velo, Grizzly and Lundgrens and products that are characterised as nicotine replacement therapy (including oral pouches, gums, lozenges and sprays).
New Categories	Includes Vapour, HP and Modern Oral.
OTP	Other Tobacco Products, including make-your-own, roll-your-own, Pipe and Cigarillos.
Poly-usage/Poly-use	Refers to a transitional period for smokers towards complete switching to potentially reduced-risk products during which period such smokers reduce cigarette consumption and choose to consume one or more New Category products.
Reduced-risk†	Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
Smokeless	New Categories plus Traditional Oral.
Solus usage	Consumers using only one category of combustible or nicotine products.
THP	Tobacco Heated Products (i.e., the consumables that contain tobacco used by Heated Product devices).
Top Cigarettes markets	Being the Top markets for industry Cigarettes sales by revenue – the U.S., Japan, Brazil, Germany, Pakistan, Mexico, and Romania. These markets represent c. 60% of global industry Cigarettes revenue in 2024.
Top HP markets	Being the Top markets for industry HP revenue – Japan, South Korea, Italy, Germany, Greece, Poland, Romania, the Czech Republic, Spain and Portugal. These Top markets account for c.80% of total industry HP revenue in 2024.
Top Modern Oral markets	Being the Top markets for industry Modern Oral sales by revenue – the U.S., Sweden,  Denmark, Norway, Switzerland, UK and Poland, accounting for c.90% of total industry Modern Oral revenue in 2024.
Top Vapour Markets	Being the Top markets for industry Vapour sales by revenue – the U.S., Canada, the UK, France, Germany, Poland and Spain. These Top markets account for c.80% of total industry vapour revenue (rechargeable closed systems consumables and disposables in tracked channels) in 2024
Traditional Oral	Including Moist Snuff (including Granit, Mocca, Grizzly, Kodiak) and other traditional snus products (including Camel Snus and Lundgrens).
U.S.	United States of America.
Value share	Value share is the estimated retail value of units bought by consumers of a particular brand or combination of brands, as a proportion of the total estimated retail value of units bought by consumers in the industry, category or other sub-categorisation in discussion. Except when referencing particular markets, value share is based on our Top markets.
Vapour	Battery-powered devices (rechargeable or single-use) that heat liquid formulations – e-liquids – to create a vapour which is inhaled. Vapour products include Vuse.
Volume share	Offtake volume share, as independently measured by retail audit agencies and scanner sales to consumers, where possible or based on movements within the supply chain (such as sales to retailers) to generate an estimate of shipment share, based upon latest available data. Except when referencing particular markets, volume share is based on our Top markets.

Group Volume
Six months ended 30 June	2025			2024
	Reported	Growth %		Reported
New Categories:
Vapour (units mn)	253	-12.9%		290
HP (bn sticks)	10.1	+1.6%		9.9
Modern Oral (bn pouches)	5.0	+42.2%		3.5
Traditional Oral (bn sticks eq)	2.8	-10.4%		3.1
Cigarettes (bn sticks)	228.7	-8.7%		250.0
OTP (bn sticks)	5.4	-15.3%		6.4
Total Combustibles (bn sticks)	234.1	-8.8%		256.4
Memo: Cigarettes + HP (bn sticks)	238.8	-8.3%		259.9

Six months ended 30 June	2025
	Reported	Adj Items1	Adjusted	Exchange	Adjusted at CC2	Adj for Canada3 at CC2	As adj. for Canada3 at CC2
	£m	£m	£m	£m	£m	£m	£m
Profit from Operations
U.S.	2,255	808	3,063	87	3,150	—	3,150
AME	1,969	(495)	1,474	76	1,550	(164)	1,386
APMEA	845	12	857	42	899	—	899
Total Region	5,069	325	5,394	205	5,599	(164)	5,435
Net finance costs	(969)	98	(871)	(14)	(885)	(45)	(930)
Associates and joint ventures	1,474	(1,242)	232	13	245	—	245
Profit before tax	5,574	(819)	4,755	204	4,959	(209)	4,750
Taxation	(1,009)	(95)	(1,104)	(47)	(1,151)	54	(1,097)
Non-controlling interests	(53)	(3)	(56)	(1)	(57)	—	(57)
Coupons relating to hybrid bonds net of tax	(22)	—	(22)	—	(22)	—	(22)
Profit attributable to shareholders	4,490	(917)	3,573	156	3,729	(155)	3,574
Diluted number of shares (m)	2,205		2,205		2,205		2,205
Diluted earnings per share (pence)	203.6		162.0		169.1		162.1

Six months ended 30 June	2024
	Reported	Adj Items1	Adjusted			Adj for Canada3	As adjusted for Canada3
	£m	£m	£m			£m	£m
Profit from Operations
U.S.	1,775	1,278	3,053			—	3,053
AME	1,473	14	1,487			(232)	1,255
APMEA	1,010	14	1,024			—	1,024
Total Region	4,258	1,306	5,564			(232)	5,332
Net finance costs	(305)	(516)	(821)			(66)	(887)
Associates and joint ventures	1,647	(1,367)	280			—	280
Profit before tax	5,600	(577)	5,023			(298)	4,725
Taxation	(1,041)	(115)	(1,156)			77	(1,079)
Non-controlling interests	(67)	—	(67)			—	(67)
Coupons relating to hybrid bonds net of tax	(21)	—	(21)			—	(21)
Profit attributable to shareholders	4,471	(692)	3,779			(221)	3,558
Diluted number of shares (m)	2,232		2,232				2,232
Diluted earnings per share (pence)	200.3		169.3				159.4

1.	Adjusting items represent certain items which the Group considers distinctive based upon their size, nature or incidence.

2.	CC: constant currency – measures are calculated based on a re-translation, at the prior year’s exchange rates, of the current year’s results of the Group and, where applicable, its segments.

3.	The adjustment in respect of Canada is discussed on page 13, with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

Non-GAAP Measure title		Presented in			Reconciled from:
		Current rates	Constant rates	Adjusted for Canada2	IFRS measure
Revenue	£m	n/a1	Yes		Revenue
New Categories revenue	£m	Yes	Yes		Revenue
Smokeless revenue as a % of total revenue	%	Yes			Revenue
Adjusted profit from operations	£m	Yes	Yes	Yes	Profit from Operations
Adjusted operating margin	%	Yes	Yes	Yes	Revenue/Profit from Operations
Adjusted diluted earnings per share	p	Yes	Yes	Yes	Diluted Earnings per Share

1.	Revenue at current rates is the IFRS measure.  2. The adjustment in respect of Canada is discussed on page 13, with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

Six months ended 30 June	2025	2024
	£m	£m
Revenue	12,069	12,340
Impact of translational foreign exchange	498
Revenue translated at 2024 exchange rates	12,567	12,340

Six months ended 30 June	2025				2024
Group Revenue	Reported	Impact of exchange	Revenue at CC		Reported
	£m	£m	£m		£m
New Categories	1,651	38	1,689		1,651
Vapour	737	19	756		869
HP	444	10	454		441
Modern Oral	470	9	479		341
Traditional Oral	542	13	555		555
Smokeless	2,193	51	2,244		2,206
Combustibles	9,515	418	9,933		9,856
Other	361	29	390		278
Total Revenue	12,069	498	12,567		12,340

Six months ended 30 June	2025				2024
U.S. Revenue	Reported	Impact of exchange	Revenue at CC		Reported
	£m	£m	£m		£m
New Categories	536	14	550		529
Vapour	434	11	445		507
HP	—	—	—		—
Modern Oral	102	3	105		22
Traditional Oral	521	14	535		537
Smokeless	1,057	28	1,085		1,066
Combustibles	4,328	114	4,442		4,281
Other	47	1	48		31
Total Revenue	5,432	143	5,575		5,378

Six months ended 30 June	2025				2024
AME Revenue	Reported	Impact of exchange	Revenue at CC		Reported
	£m	£m	£m		£m
New Categories	832	17	849		839
Vapour	267	7	274		301
HP	218	5	223		235
Modern Oral	347	5	352		303
Traditional Oral	21	(1)	20		18
Smokeless	853	16	869		857
Combustibles	3,216	211	3,427		3,334
Other	212	22	234		185
Total Revenue	4,281	249	4,530		4,376

Six months ended 30 June	2025				2024
APMEA Revenue	Reported	Impact of exchange	Revenue at CC		Reported
	£m	£m	£m		£m
New Categories	283	7	290		283
Vapour	36	1	37		61
HP	226	5	231		206
Modern Oral	21	1	22		16
Traditional Oral	—	—	—		—
Smokeless	283	7	290		283
Combustibles	1,971	93	2,064		2,241
Other	102	6	108		62
Total Revenue	2,356	106	2,462		2,586

		2025
		Group reported £m	Combustibles £m	New Categories £m	Traditional Oral £m	Other £m
	Revenue	12,069	9,515	1,651	542	361
	vs 2024	-2.2%	-3.5%	—%	-2.4%	30.1%
	Impact of translational FX	498	418	38	13	29
	Revenue at constant FX	12,567	9,933	1,689	555	390
	vs 2024	1.8%	0.8%	2.4%	—%	40.3%
	Profit from Operations	5,069
	Operating margin	42.0%
	Adjusting items (see page 52)	325
	Impact of translational FX	205
	Adjustments in respect of Canada1	(164)
	Adjusted profit from operations (as adj for Canada)	5,435
	Adj. operating margin (as adj for Canada)	43.2%
	Other costs that are not attributable to categories	942

		2024
		Group reported £m	Combustibles £m	New Categories £m	Traditional Oral £m	Other £m
	Revenue	12,340	9,856	1,651	555	278
	Profit from Operations	4,258
	Operating margin	34.5%
	Adjusting items (see page 52)	1,306
	Adjustments in respect of Canada1	(232)
	Adjusted profit from operations (as adj for Canada)	5,332
	Adj. operating margin (as adj for Canada)	43.2%
	Other costs that are not attributable to categories	901

1.	The adjustment in respect of Canada is discussed on page 13, with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

Six months ended 30 June	2025	2024
	£m	£m
Profit from operations	5,069	4,258
Add:
Restructuring and integration costs	13	—
Amortisation and impairment of trademarks and similar intangibles	804	1,295
Impairment of goodwill	72	—
Romania other taxes	(22)	—
Charges in connection with disposal of associate	3	6
Changes in provision in relation to Canada Approved Plan	(575)	—
Credit in respect of settlement of historical litigation in relation to the Fox River	—	(132)
Charges in respect of DOJ investigation and OFAC investigation	—	4
Other adjusting items (including Engle)	30	133
Adjusted profit from operations	5,394	5,564
Impact of translational foreign exchange on adjusted profit from operations	205
Adjusted profit from operations translated at 2024 exchange rates	5,599	5,564
Adjustments in respect of Canada1, translated at 2024 exchange rates	(164)	(232)
Adjusted profit from operations, as adjusted for Canada, translated at 2024 exchange rates	5,435	5,332
Operating Margin (Profit from operations as % of revenue)	42.0%	34.5%
Adjusted Operating Margin (Adjusted profit from operations as % of revenue)	44.7%	45.1%
Adjusted Operating Margin as adjusted for Canada (Adjusted PFO as adjusted for Canada as % of  revenue), translated  at 2024 exchange rates	43.2%	43.2%

Six months ended 30 June	2025	2024
	£m	£m
Finance costs	(1,084)	(424)
Finance income	115	119
Net finance costs	(969)	(305)
Less: Adjusting items in net finance costs	98	(516)
Adjusted net finance costs	(871)	(821)
Comprising:
Interest payable	(879)	(901)
Interest and dividend income	115	119
Fair value changes – derivatives	(585)	(49)
Exchange differences	478	10
Adjusted net finance costs	(871)	(821)
Impact of translational foreign exchange	(14)
Adjusted net finance costs translated at 2024 exchange rates	(885)	(821)
Adjustments in respect of Canada1, translated at 2024 exchange rates	(45)	(66)
Adjusted net finance costs, as adjusted for Canada, translated at 2024 exchange rates	(930)	(887)

1.	The adjustment in respect of Canada is discussed on page 13, with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

Six months ended 30 June	2025	2024
	£m	£m
Group’s share of post-tax results of associates and joint ventures	1,474	1,647
Issue of shares and changes in shareholding	(2)	(6)
Gain on  ITC's demerger of hotels business (net of tax)	(333)	—
Gain on partial divestment of shares held in ITC*	(904)	(1,361)
Gain on sale of land and property by VST industries Limited	(3)	—
Adjusted Group’s share of post-tax results of associates and joint ventures	232	280
Impact of translational foreign exchange	13
Adjusted Group’s share of post-tax results of associates and joint ventures translated at 2024 exchange rates	245	280

Six months ended 30 June	2025	2024
	£m	£m
UK
– current year tax	66	83
– adjustment in respect of prior periods	(1)	—
Overseas
– current year tax	1,093	1,208
– adjustment in respect of prior periods	(5)	194
Current tax	1,153	1,485
Pillar 2 income tax	43	46
Total current tax	1,196	1,531
Deferred tax	(187)	(490)
Taxation on ordinary activities	1,009	1,041
Adjusting items in taxation	66	(36)
Taxation on adjusting items	29	151
Adjusted taxation	1,104	1,156

Six months ended 30 June	2025	2024
	£m	£m
Profit before taxation (PBT)	5,574	5,600
Less:
Share of post-tax results of associates and joint ventures	(1,474)	(1,647)
Adjusting items within profit from operations	325	1,306
Adjusting items within finance costs	98	(516)
Adjusted PBT, excluding associates and joint ventures	4,523	4,743
Impact of translational foreign exchange	191
Adjusted PBT, excluding associates and joint ventures translated at 2024 exchange rates	4,714	4,743
Adjustments in respect of Canada2, translated at 2024 exchange rates	(209)	(298)
Adjusted PBT, excluding associates and joint ventures and as adjusted for Canada, translated at 2024 exchange rates	4,505	4,445
Taxation on ordinary activities	(1,009)	(1,041)
Adjusting items within taxation and taxation on adjusting items	(95)	(115)
Adjusted taxation	(1,104)	(1,156)
Impact of translational foreign exchange on adjusted taxation	(47)
Adjusted taxation translated at 2024 exchange rates	(1,151)	(1,156)
Adjustments in respect of Canada2, translated at 2024 exchange rates	54	77
Adjusted taxation, as adjusted for Canada translated at 2024 exchange rates	(1,097)	(1,079)
Effective tax rate	18.1%	18.6%
Underlying tax rate	24.4%	24.4%
Underlying tax rate (constant rates)	24.4%
Underlying tax rate (constant rates) as adjusted for Canada2	24.4%

Six months ended 30 June	2025	2024
	pence	pence
Diluted earnings per share	203.6	200.3
Effect of amortisation and impairment of goodwill, trademarks and similar intangibles	31.4	44.5
Effect of settlement of historical litigation in relation to the Fox River	—	(5.0)
Effect of the changes in provision in relation to the Approved Plans in Canada	(19.1)	—
Effect of partial disposal of an associate	0.1	0.3
Effect of Romania other taxes	(1.0)	—
Effect of charges in respect of DOJ and OFAC investigations	—	0.2
Effect of restructuring and integration costs	0.2	—
Effect of other adjusting items in operating profit	1.2	4.6
Effect of adjusting items in net finance costs	3.4	(17.4)
Effect of gains related to the partial divestment of shares held in ITC1	(41.0)	(61.1)
Tax associated with the partial divestment of shares held in ITC and hotels business demerger1	1.6	1.6
Effect of associates’ adjusting items	(15.3)	(0.3)
Effect of adjusting items in respect of deferred taxation	(2.8)	(5.9)
Adjusting items in tax	(0.3)	7.5
Adjusted diluted earnings per share	162.0	169.3
Impact of translational foreign exchange	7.1
Adjusted diluted earnings per share translated at 2024 exchange rates	169.1	169.3
Adjustments in respect of Canada2, translated at 2024 exchange rates	(7.0)	(9.9)
Adjusted diluted earnings per share translated at 2024 exchange rates as adjusted for Canada	162.1	159.4

1.	The 2025 values of the gains related to the partial divestment of shares held in ITC and associated tax  are provisional.

2.	The adjustment in respect of Canada is discussed on page 13, with the adjustment based upon the profit after interest and tax from all sources, excluding New Categories, in Canada.

Volume (unit)
Six months ended 30 June	U.S.			AME			APMEA			Group
	2025	% change		2025	% change		2025	% change		2025	% change
New Categories
Vapour (units mn)	123	-13.8%		112	-7.3%		18	-33.4%		253	-12.9%
HP (sticks bn)	—	—%		3.9	-8.3%		6.2	+8.7%		10.1	+1.6%
Modern Oral (pouches bn)	1.1	+206%		3.3	+24.9%		0.6	+15.1%		5.0	+42.2%
Traditional Oral (stick eq bn)	2.5	-9.5%		0.3	-16.8%		—	—%		2.8	-10.4%
Cigarettes (sticks bn)	21	-7.7%		111	-3.5%		97	-14.0%		229	-8.7%
OTP (stick eq bn)	—	+0.9%		4	-14.2%		1	-24.6%		5	-15.3%
Total Combustibles	21	-7.6%		115	-4.0%		98	-14.1%		234	-8.8%
Memo: Cigarettes and HP (sticks bn)	21	-7.7%		115	-3.7%		103	-12.9%		239	-8.3%
Revenue - reported at current rates (£m)
Six months ended 30 June	U.S.			AME			APMEA			Group
	2025	% change		2025	% change		2025	% change		2025	% change
New Categories	536	+1.3%		832	-0.8%		283	+0.4%		1,651	—%
Vapour	434	-14.5%		267	-11.4%		36	-40.5%		737	-15.3%
HP	—	—%		218	-7.4%		226	+10.1%		444	+0.8%
Modern Oral	102	+372%		347	+14.7%		21	+29.7%		470	+38.1%
Traditional Oral	521	-2.9%		21	+11.4%		—	—%		542	-2.4%
Total Smokeless	1,057	-0.8%		853	-0.6%		283	+0.4%		2,193	-0.6%
Total Combustibles	4,328	+1.1%		3,216	-3.5%		1,971	-12.0%		9,515	-3.5%
Other	47	+52.5%		212	+15.2%		102	+63.1%		361	+30.1%
Total	5,432	+1.0%		4,281	-2.2%		2,356	-8.9%		12,069	-2.2%
Revenue - at constant rates (£m)
Six months ended 30 June	U.S.			AME			APMEA			Group
	2025	% change		2025	% change		2025	% change		2025	% change
New Categories	550	+3.9%		849	+1.3%		290	+2.5%		1,689	+2.4%
Vapour	445	-12.3%		274	-9.1%		37	-38.4%		756	-13.0%
HP	—	—%		223	-4.8%		231	+12.3%		454	+3.1%
Modern Oral	105	+384%		352	+16.5%		22	+32.7%		479	+40.6%
Traditional Oral	535	-0.4%		20	+10.1%		—	—%		555	—%
Total Smokeless	1,085	+1.8%		869	+1.5%		290	+2.5%		2,244	+1.8%
Total Combustibles	4,442	+3.8%		3,427	+2.8%		2,064	-7.9%		9,933	+0.8%
Other	48	+57.1%		234	+26.4%		108	+73.0%		390	+40.3%
Total	5,575	+3.7%		4,530	+3.5%		2,462	-4.8%		12,567	+1.8%