British American Tobacco p.l.c. (NYSE:BTI) reported earnings per share (EPS) of $2.44 and revenue of approximately $17.74 billion, meeting market expectations.
The company’s resilience is evident from a 1.3% increase in revenue in 2024, despite facing industry challenges such as increased taxes.
BTI’s share price saw an 8% drop, but the company remains optimistic about growth, with financial metrics indicating solid market valuation and financial health.
British American Tobacco p.l.c. (NYSE:BTI) is a leading global tobacco company known for its diverse product portfolio, including traditional cigarettes and newer smokeless products. The company operates in a highly competitive industry, facing rivals like Philip Morris International and Altria Group. BTI’s focus on innovation and expansion into new categories helps it navigate industry challenges.
On February 13, 2025, BTI reported its earnings, achieving an earnings per share (EPS) of $2.44, aligning with market expectations. The company’s revenue also matched estimates, reaching approximately $17.74 billion. This performance reflects BTI’s ability to meet financial targets despite facing industry headwinds, such as increased taxes in key markets like Bangladesh and Australia.
In 2024, BTI demonstrated resilience with a 1.3% increase in revenue, reaching £27.2 billion, driven by the Total Smokeless segment. However, challenges in 2025, including a 2% decline in adjusted profit from operations due to tax hikes, highlight the company’s ongoing struggles. Despite these hurdles, the New Categories segment, particularly Modern Oral, shows promising growth potential.
BTI’s share price experienced an 8% drop, despite slightly better-than-expected revenue and earnings. The company’s annual revenue decreased by 5.2% to £25.9 billion, influenced by the sale of its businesses in Russia and Belarus and currency headwinds. However, organic revenue saw a modest increase of 1.3%, indicating underlying business strength.
Looking forward, BTI anticipates a 2% decline in global tobacco industry volume in 2025. Despite this, the company remains optimistic about growth in its operations. BTI’s financial metrics, such as a price-to-sales ratio of 2.59 and a debt-to-equity ratio of 0.75, reflect its market valuation and financial health. The planned £900 million share buy-back and increased dividend further demonstrate BTI’s commitment to shareholder returns.
