British American Tobacco (BAT) has upgraded its full-year earnings growth forecast, driven by accelerating demand for its Velo nicotine pouches and robust performance in the United States.
The London-listed tobacco giant reported that these gains more than compensated for a significant decline in sales across its Asian operations, marking a pivotal moment in its transition away from traditional combustible products.
The company’s ability to lift guidance despite regional headwinds underscores the growing commercial viability of its smoke-free portfolio.
Velo, BAT’s leading nicotine pouch brand, has emerged as a key growth engine, attracting consumers who are increasingly moving away from smoking.
This shift is particularly evident in mature markets where regulatory pressure and changing consumer preferences are accelerating the decline of cigarette volumes.
In the US, BAT’s market share gains continued to support top-line growth, providing a stable foundation for the earnings upgrade.