BTI changes
Pick any two versions below to diff them.
- Balance sheet
- British American Tobacco carries a large debt load from the 2017 purchase of Reynolds American. Most of it is unsecured bonds that central finance companies issue and the parent guarantees. At June 30, 2026, borrowings including leases were £35.1 billion, and net debt was £32.6 billion. Cash was £2.5 billion. But £386 million of it sits in Canada under the court-approved plan that settles Canadian tobacco claims. The group also carries a long-term provision for payments under that plan. Centrally managed bonds have an average maturity of 9.3 years, and no more than 15.1% matures in any 12-month period. About 75% of the debt is at a fixed rate after swaps. Moody's rates BAT Baa1, S&P rates it BBB+ and Fitch rates it A-, all with a stable outlook. The group also has £1.9 billion of perpetual hybrid bonds that it counts as equity. Liquidity is a £5.0 billion undrawn revolving credit facility and £1.9 billion of undrawn bilateral lines. In August 2026, BAT sold $1.5 billion of new US dollar notes due 2033 and 2036. Management targets adjusted net debt of 2.0 to 2.5 times adjusted EBITDA by the end of 2026. After £2.6 billion of dividends, free cash flow was negative £349 million in H1 2026. Thus the dividend and the £1.3 billion buyback depend on stronger second-half cash flow. They also leave little room to reduce debt faster. As of 2026-06-30.
- Checkpoints
- Dec 2026 (estimate): Pre-close trading update: New Category growth and leverage. Pending. Watch: Confirmation of mid-teens New Category revenue growth and leverage inside 2.0 to 2.5 times by year end passes; a guidance cut or a leverage miss fails. Feb 11, 2027 (estimate): Full-year 2026 results: Velo profit and debt target. Pending. Watch: New Category profit growth that offsets the 2.5% cigarette volume decline and leverage inside the 2.0 to 2.5 times range pass; leverage above 2.5 times or weaker Velo margins fail. Q2 2027 (estimate): EU nicotine pouch and excise rules. Pending. Watch: EU rules that allow Velo with limits on flavors and moderate taxes pass; a ban or very high pouch excise in large EU markets fails.