Q4 2025 British American Tobacco plc Trading Statement Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mirza Baig - UBS - Analyst : I have two as well. The first one on glo Hilo. Could you maybe talk a bit more about the early consumer sourcing signals you're seeing in Japan and Poland, whether from existing glo users, competitive products, or combustibles? And what early learnings gives you the confidence as you sort of plan broader rollouts in 2026? Any share figures that you can share here would be much appreciated. And my second question, on FY26, you've guided towards the lower end of your mid-term growth algorithm. As you look into next year and maybe even beyond, what are the key drivers or variables that could help you migrate toward the upper half of that range?

Question: Mirza Baig - UBS - Analyst : Thank you. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 8:30AM, BATS.L - Q4 2025 British American Tobacco plc Trading Statement Call

Question: Damian McNeela - Deutsche Bank AG - Analyst : First question is just back on the US Vuse performance. Clearly, it's pleasing that we're back in volume and revenue growth. I was wondering if you could provide a little bit more color on the sort of -- on a state level performance and whether that performance is concentrated or the positive performance is concentrated on a small number of states or whether you're seeing a more broad-based improvement for the brand across the US is the first question. And then the second one is just on -- I think previously, you've talked about sort of running pilots with Doral in deep discount. I was just wondering if you could provide an update on: a, how that's going; and b, whether there's plans to expand that pilot of Doral, please?

Question: Damian McNeela - Deutsche Bank AG - Analyst : Okay. Very clear. Thank you, Tadeu.

Question: Philip Spain - JPMorgan Chase & Co - Analyst : I had two, please. The first one was just on the guide for 2026. I appreciate your comments on the profit, why you're guiding towards the lower end. But just wondered if you could provide a bit more color on why for the top line, you're also expecting at the lower end? And also wondering how much of a benefit you expect the drawback in the US to be for your top line next year as well -- [isn't] using that more next year? LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. DECEMBER 09, 2025 / 8:30AM, BATS.L - Q4 2025 British American Tobacco plc Trading Statement Call And then my second question is just on the -- going back to the illicit vape crackdown in the US. I just wondered in terms of what you're seeing in terms of consumers where -- in states where the enforcement is occurring, what they're switching back to and if they're mostly switching back into the legal vapor options or if they're switching more into pouches or back into cigarettes as well? Just kind of interested to hear that shape.

Question: Philip Spain - JPMorgan Chase & Co - Analyst : Thank you very much. Maybe could I just add one follow up to that final point? In your conversations with the FDA, are they being more open towards introducing flavors in the legal vapor market again?

Question: Philip Spain - JPMorgan Chase & Co - Analyst : Okay. Thank you very much.

Question: Rey Wium - Anchor Securities Stockbrokers Pty Ltd - Analyst : Just a question around the rollout of glo Hilo. You mentioned, obviously, full rollout in Japan in September and then October, November for Poland and Italy. I'm just curious how long will this rollout take place. Will you be able to get like a full-scale rollout, let's say, by the end of 2026 or are there any capacity constraints around the product availability?

Question: Rey Wium - Anchor Securities Stockbrokers Pty Ltd - Analyst : So is it fair to assume that THP will probably be the slowest growing unit of the three new categories?

Question: Rey Wium - Anchor Securities Stockbrokers Pty Ltd - Analyst : Good. And maybe just a quick follow up, talk about the combustible business. You indicated an improvement into the second half. So is this just a marginal improvement on the first half? I mean, the first half revenue, I think, in constant currency was up [0.8%]. So I just want to get sort of an idea of the improvement that you expect in the combustibles in the second half.

Question: Rey Wium - Anchor Securities Stockbrokers Pty Ltd - Analyst : Okay. Thank you so much.

Question: Morayo Adesina - Barclays Services Corp - Analyst : Apologies if I missed this earlier. I was just wondering if you could quantify the benefit that you've seen from the duty drawback.

Question: Morayo Adesina - Barclays Services Corp - Analyst : Okay. That's clear. Thank you.

Question: Bastien Agaud - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Bastien from Bank of America. I have one on Velo pricing. So in Europe, the product is priced at a premium over your main competitor. And I understand that you have not received PMTA yet for Velo in the US. But going forward, [if we] should expect pricing for Velo in the US in case you receive PMTA for the product, should we expect to trade in line with your main competitor at a premium or continue to price the product at a slight discount compared to the competitors?

Question: Bastien Agaud - Bofa Merrill Lynch Asset Holdings Inc - Analyst : Understand. Thank you very much.