British American Tobacco has entered 2025 with an advanced transformation towards a smokeless portfolio, which is already a significant part of the business and is helping to cushion pressure in traditional categories. In the second quarter, despite currency headwinds, the company grew revenue at constant rates and delivered a visible improvement in operating profitability, with a return to growth in the US and the acceleration of Velo modern oral, supported by the new Velo Plus, playing a key role. At the same time, the Company maintained high cash conversion and enhanced capital flexibility, which was reflected in an increase in the share buyback programme.

The second pillar of the quarterly results is about cost discipline and consistent capital allocation to the largest profitable "profit pools". New Categories improved contribution and margin and the company expects further acceleration in the second half of the year through phased innovation. Although APMEA faces regulatory and…