British American Tobacco, the maker of Lucky Strike and Dunhill, reported a 2.3% increase in annual profit to 11.28 billion pounds, the company said on Thursday. The group attributed part of the improvement to the stronger performance of its Velo nicotine pouch in the U.S., alongside expanding sales of its vapour and heated tobacco offerings.
BAT highlighted that Velo has been taking market share from rival nicotine-pouch brands, specifically Altria's On! and Philip Morris' Zyn, in the key U.S. market. The company said Velo's gains have been supported in part by offering higher nicotine strengths and introductory offers as it builds out the brand.
The maker of Dunhill added that revenue from its portfolio of newer products - a category that includes vapour products and heated tobacco - rose 7% for the year ended Dec. 31, 2025. That growth in the newer-products segment helped lift total sales by 2.1% to 25.61 billion pounds. The company disclosed the exchange rate used in reporting, with $1 equal to 0.7344 pounds.
Context and commercial signals
The results point to continued traction for BAT's newer product lines and for Velo specifically in the U.S. market. The company called out promotional activity and higher-strength nicotine offerings as contributors to Velo's uptake against competing labels.
Alongside the headline profit and sales figures, the company noted that the expansion of the Velo brand is ongoing, and that its newer-products portfolio delivered year-on-year revenue growth of 7% over the reporting period ending Dec. 31, 2025.
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Some investor services referenced in market commentary evaluate BATS using broad quantitative frameworks. One such service said it assesses BATS alongside thousands of companies using more than 100 financial metrics and cited prior notable stock performances as part of its promotional material.
For the full set of company figures: annual profit 11.28 billion pounds, up 2.3%; total sales 25.61 billion pounds, up 2.1%; newer-products revenue up 7% for the year ended Dec. 31, 2025. Exchange rate used: $1 = 0.7344 pounds.