Revenue shares by industry:

• Traditional tobacco products: approx. 70%
• New categories (e.g. e-cigarettes, heated tobacco): approx. 25%
• Other (e.g. nicotine pouches): approx. 5%

TOP 3 markets and their percentage shares:

1. USA: approx. 35%
2. Europe: approx. 25%
3. Asia-Pacific: approx. 20%

British American Tobacco p.l.c. (BAT) continues to generate the majority of its revenue from traditional tobacco products, although the share of new categories is steadily growing. The USA remains BAT's largest single market, followed by Europe and the Asia-Pacific region. These markets are crucial for the company as they represent a significant portion of the total revenue and offer growth opportunities, especially in the new categories sector.

Production sites: Worldwide, with a focus on Asia, Europe, Africa, and America.

British American Tobacco p.l.c. (BAT) operates production facilities around the world. The main production regions include Asia, Europe, Africa, and America. This geographical diversification enables BAT to efficiently respond to local market requirements and optimize supply chains.

In recent years, BAT has invested in the modernization and automation of its production plants to increase efficiency and reduce production costs. This is part of their strategy to remain competitive and enhance profitability.

The exact locations of the production sites may change as the company regularly reviews and adjusts its production capacities to respond to market changes and regulatory requirements.

Revenue from new categories: 5.9 billion GBP (2023) Target for revenue from new categories: 5 billion GBP by 2025 Investments in research and development: 350 million GBP annually

British American Tobacco p.l.c. pursues a strategy that focuses heavily on diversifying its product portfolio, particularly through the expansion of "New Categories." These include products such as e-cigarettes, tobacco heaters, and nicotine pouches, which are considered less harmful alternatives to traditional tobacco products.

The company aims to increase revenue from these new categories to 5 billion GBP by 2025. To achieve this goal, BAT invests approximately 350 million GBP annually in research and development to develop innovative products and secure market leadership in this segment.

Furthermore, BAT is focusing on geographical expansion, especially in high-growth markets, and leveraging digital platforms for better customer engagement. This strategy is intended not only to promote revenue growth but also to reduce dependence on traditional tobacco products.

Tobacco leaves: Mainly from Brazil, India, and Zimbabwe.
Pulp for cigarette paper: From Canada and Sweden.
Flavorings: From the USA and Germany.
Packaging materials: From China and Italy.

British American Tobacco p.l.c. imports a variety of raw materials necessary for the production of their products. The tobacco leaves, as the main raw material, come from different countries, with Brazil, India, and Zimbabwe being among the largest suppliers. These countries offer climatic conditions that are optimal for tobacco cultivation.

Pulp needed for the production of cigarette paper is mainly imported from Canada and Sweden, as these countries have abundant forest resources and a well-developed paper industry.

Flavorings used to enhance the taste of the products come from the USA and Germany, where there are specialized companies producing high-quality flavors.

Packaging materials crucial for the presentation and protection of the products are sourced from China and Italy, as these countries have a strong packaging industry.

Market share: 13% (estimated for 2025)
EBIT margin: 40% (2024)
R&D expenses: 1.5 billion GBP (2024)

British American Tobacco p.l.c. (BAT) possesses a significant competitive advantage that consists of several factors. The company holds an estimated market share of 13% in the global tobacco market, making it one of the leading players in the industry. This strong market position enables BAT to benefit from economies of scale and achieve a high EBIT margin of 40%, indicating an efficient cost structure and strong pricing power.

Furthermore, BAT continuously invests in research and development, with expenses of 1.5 billion GBP in 2024. These investments are crucial to remain competitive in the field of Next-Generation Products (NGPs) and adapt to changing consumer preferences. The focus on innovation and product diversification strengthens the company's long-term competitiveness.

Overall, BAT's competitive advantage is supported by its strong market position, high profitability, and strategic investments in new technologies and products.

Institutional investor share: approx. 75% (2025, estimated)
Insider purchases/sales: No significant transactions in the last year (2025, estimated)

The institutional investor share in British American Tobacco p.l.c. remains traditionally high, as large investment funds and pension funds invest in stable and dividend-paying companies. This reflects the confidence of institutional investors in the long-term stability and profitability of the company.

In 2025, there were no significant insider transactions, indicating that management does not expect significant changes in the company's value or that there is no internal information suggesting an imminent change in stock price.

Market share of British American Tobacco (BAT): 12% (estimated for 2025)

Top competitors and their market shares:

1. Philip Morris International (PMI): 14%
2. Altria Group: 10%
3. Japan Tobacco International (JTI): 8%
4. Imperial Brands: 7%
5. China National Tobacco Corporation: 40% (dominates the Chinese market)

Moat of British American Tobacco:

British American Tobacco has a significant moat, which consists of several factors. These include a strong brand presence with well-known brands like Lucky Strike and Pall Mall, broad geographical diversification, and a robust supply chain. These factors enable BAT to withstand market fluctuations and regulatory challenges.

Compared to its competitors, BAT has an advantage due to its innovation in the area of smoke-free products, such as Vuse and glo. This is particularly important as the market for traditional tobacco products is stagnant, and the trend towards alternative nicotine products is growing.

However, Philip Morris International has a strong moat in the heated tobacco products segment with its IQOS technology, giving PMI a competitive advantage in this growing segment. China National Tobacco Corporation remains unchallenged due to its monopoly position in the vast Chinese market.

Overall, BAT has a solid moat, but they face intense competition, especially in the smoke-free products sector, where innovation and brand strength are crucial.

Revenue growth: 2.5% (2024) Profit growth: 3.1% (2024) Dividend yield: 7.5% (2024) Market share in the tobacco sector: 15% (2024)

British American Tobacco p.l.c. is an established company in the tobacco sector with a stable market position. In 2024, the company achieved a revenue growth of 2.5% and a profit growth of 3.1%. These growth rates are moderate but reflect the challenges of the industry, especially due to regulatory measures and the decline in traditional tobacco consumption.

The dividend yield of 7.5% is attractive to investors seeking regular returns. This high yield suggests that the company continues to be able to provide significant payouts to its shareholders, which is a positive signal for income-oriented investors.

Additionally, in recent years, British American Tobacco has invested in alternative products such as heated tobacco products and e-cigarettes to offset the decline in traditional tobacco business. This strategic direction could lead to a diversification of revenue sources in the long term and make the company more resilient to market changes.

Overall, British American Tobacco p.l.c. stock could be a good investment for investors looking for stable dividends and a company with a strong market position. However, the long-term growth prospects heavily depend on the company's ability to adapt to changing consumer habits and regulatory conditions.

Dividend yield: 7.8% (estimated for 2025)
Dividend history: Continuous payment for over 20 years

British American Tobacco p.l.c. is known for its reliable dividend policy. Over the past few decades, the company has consistently distributed dividends to its shareholders, indicating strong financial stability and a steady cash flow.

The estimated dividend yield for 2025 is around 7.8%, which is considered attractive compared to other companies in the industry. This high yield reflects the company's ability to generate stable income despite regulatory challenges and market changes.

Overall, British American Tobacco's dividend policy is considered reliable, making it a preferred choice for income-oriented investors.