British American Tobacco Reaffirms FY26 Revenue Growth Outlook Range, But Towards Lower End

British American Tobacco (BAT) anticipates mid-teens annual revenue growth from smoking alternatives until 2030, driven by nicotine pouches, with industry revenues expected to grow 4% from 2025-2030. BAT predicts nicotine pouch revenues will triple, with a 30% contribution margin by 2030. The company also expects global tobacco volumes to decline 2.5% in the same period and remains on track to meet its 2026 financial guidance.

British American Tobacco (BTI) outlined growth targets at its Capital Markets Day, aiming for mid-teens revenue growth in new product categories by 2030. The company projects 3-5% revenue growth for 2026 and maintains a 5.93% dividend yield with a 41% payout ratio. BTI's shares are currently 34.1% overvalued according to GuruFocus' GF Value™ estimate.

British American Tobacco (BATS) shares dropped 1.7% after the company revised its 2026 growth outlook, expecting lower-end revenue (3-5%) and profit (4-6%) growth, and mid-range EPS growth (5-8%). The company also outlined its 2030 ambitions, aiming for mid-teens New Category revenue growth and a 30% contribution margin. BATS expects a 2-2.5% FX headwind on 2026 EPS growth.

The FDA updated Import Alert 98-07 to include its May 2026 enforcement policy for unauthorized ENDS, affecting import detention procedures. The policy prioritizes enforcement based on product risk and application status. Examples include Charlie's Holdings' PACHA and R.J. Reynolds' Vuse Pro, neither of which gained marketing authorization. The revision maintains DWPE but adds Center for Tobacco Products review for certain cases.

The Trump administration plans to speed up approvals for smoke-free nicotine products like vapes and nicotine pouches, easing FDA review requirements. This benefits tobacco companies such as Altria (MO), Philip Morris (PM), and British American Tobacco (BTI), which face regulatory delays. The move aims to reduce illegal products but faces opposition from health advocates concerned about youth access.

Dragos Constantinescu started as CFO of British American Tobacco (BAT) on Sept. 1, completing the company's leadership transition. He previously worked at BAT for 16 years and most recently served as CEO of Asahi Europe & International. BAT expects his experience to support its 'A Better Tomorrow' strategy and growth plans.