London, July 3, 2026, 18:01 BST
- British American Tobacco p.l.c. (LON:BATS) finished down 0.28% at 4,621p. The FTSE 100 (INDEXFTSE:UKX) rose 0.25% to 10,679.03.
- The stock slipped 2.74% in the past five sessions, though it’s still up 30.43% for the year. Trading volume was 21% of the 65-day average.
- BAT aims for around £600 million in yearly savings by end-2028 through its Fit2Win program, which will involve about 9,000 role changes.
- The cost cuts would be around 5.2% of 2025 adjusted operating profit and 2.3% of next year’s revenue, according to the company.
British American Tobacco p.l.c. (LON:BATS) dipped on Friday, even as London shares edged up. The move was minor but let investors take in BATS’s £600 million cost-saving plan.
BAT finished at 4,621p, slipping 13p. Shares changed hands between 4,577p and 4,647p. Volume hit 928,870, about 21% of the 65-day average, so selling was light. The stock is up 30.43% for the year but down 2.74% over the last five sessions.
| July 3 close | Move | Extra read |
|---|---|---|
| British American Tobacco p.l.c. (LON:BATS) | 4,621p, down 0.28% | Down 2.74% in five days; up 30.43% over 12 months |
| FTSE 100 (INDEXFTSE:UKX) | 10,679.03, up 0.25% | Best finish since March |
| Imperial Brands PLC (LON:IMB) | £27.92, dropped 1.13% | Also trailed the index |
The gap is key because BAT’s cost update on Monday gave the market a big number but not a clear boost to earnings. BAT said its Fit2Win plan aims for around £600 million in annual cost savings by the end of 2028. Reuters reported that plan brings about 5,500 job cuts and moves about 3,500 roles to third-party firms like Accenture plc NYSE:ACN, though the U.S. is not included.
Chris Beckett, analyst at BAT holder Quilter Cheviot, told Reuters the share move probably signals “concerns that the business may need to take more drastic action to meet its medium-term targets.” BAT CEO Tadeu Marroco said in a statement the changes touch many colleagues and the group is “creating a simpler, faster BAT.” Reuters
The savings are large enough to have an impact, but still not enough to make growth from Vuse, Velo and other newer nicotine brands any less important.
| Fit2Win / 2025 scale check | Published figure | Implied read |
|---|---|---|
| End-2028 savings goal | c.£600 mln | — |
| 2025 sales | £25.610 bln | Savings are 2.3% of sales |
| 2025 adjusted operating profit | £11.572 bln | Savings are 5.2% ahead of reinvest and one-offs |
| 2025 New Categories sales | £3.621 bln | Savings come to 16.6% of that |
| 2026 buyback | £1.3 bln | Savings are 46.2% of the buyback |
BAT told investors on June 2 that it still sees 2026 performance coming in at the low end of its mid-term forecasts: 3%-5% revenue growth, 4%-6% adjusted operating profit growth and 5%-8% adjusted diluted EPS growth. BAT kept its outlook for New Categories revenue, with growth in the mid-teens expected for both the first half and full year.
That’s the problem for investors. BAT is counting on cost cuts to support margins, but it still wants the market to back its move away from cigarettes while volumes keep falling and U.S. regulation shifts. Reuters reported BAT sees industry sales of traditional tobacco products dropping 2.5% this year.
A filing Friday disclosed a small purchase. Marroco picked up three ordinary shares at £45.63 apiece on July 1, using an HMRC-approved incentive plan. The transaction came to £136.89 in total. BAT ended Friday at £46.21.
Reynolds American, the U.S. arm of BAT, claims illicit Chinese vapes now account for around 86% of the American vape market. That’s the company’s own figure, but it explains why BAT talks up the connection between regulation, enforcement and its vapour market share when making its earnings argument.
