BAT was founded in 1902 and was first listed on the London Stock Exchange in 1912. A constituent of the FTSE 100 since its creation in 1984, we have evolved, becoming the only truly global company in our sector.
BAT is transforming and is well positioned with a global footprint and multi-category portfolio. Our corporate purpose is to build A Better Tomorrow™, reducing the health impact of our business, by offering adult consumers a greater choice of enjoyable and less risky*† products compared to cigarettes. To accelerate the next phase of our transformation journey, we are now committed to Building a Smokeless^ World and becoming a predominantly smokeless business by 2035.
In addition to our purpose to reduce the health impact of our business, we continue to integrate and embed sustainability throughout our organisation, addressing areas of material impact including climate change, circular economy, biodiversity and human rights.
We have a global portfolio of established brands in five categories: Vapour (Vuse), Heated Products (Glo), Modern Oral (Velo), Traditional Oral (Grizzly) and Cigarettes (including Dunhill, Kent, Lucky Strike, Rothmans and Pall Mall). Our products are sold in over 150 markets, across six continents, through over 11 million points of sale. In addition, we continue to seek longer term opportunities in adjacent areas Beyond Nicotine focused on wellbeing and simulation.
BAT employs over 46,000 people and generates over £27bn total revenue** across our three regions:
- The United States of America
- Americas & Europe (AME)
- Asia Pacific, Middle East & Africa (APMEA)
BAT is highly cash generative – we have returned c.£26bn of cash to shareholders (from 2019—2023) and expect to generate around £40bn*** free cash flow before dividends over the next 5 years. Going forward the key elements of capital allocation at BAT will include:
- Continued investment in our transformation
- Progressive dividends – building on our 25-year track record of consistent growth
- Continued deleverage to a range of 2-2.5x adjusted net debt / adjusted EBITDA
- Sustainable share buybacks (starting with £1.6bn by December 2025)****
We have strong foundations, and a strategy for accelerated growth. We are confident this will create sustainable value for all our stakeholders.
For more information, please visit www.bat.com/investors.
March 2024
* Based on the weight of evidence and assuming a complete switch from cigarette smoking. These products are not risk free and are addictive.
† Our Vapour product Vuse (including Alto, Solo, Ciro and Vibe), and certain products, including Velo, Grizzly, Kodiak, and Camel Snus, which are sold in the U.S., are subject to FDA regulation and no reduced-risk claims will be made as to these products without agency clearance.
^ Smokeless – refers to non-combustibles, including Vapour products, Heated Products, Modern Oral pouches and Traditional Oral.
** FY23 at current rates
*** Cumulative free cash flow.
**** Forward-looking statements involve risk and uncertainties and undue reliance should not be placed on such statements. Please see cautionary statement in our current annual report in Form 20-F: BAT 2023 ARA - Form 20F
