LONDON, April 23, 2026, 19:56 BST
British American Tobacco kicked off the latest leg of its share buyback Thursday, appointing Merrill Lynch International to handle the purchases through June 29, just a day after the announcement. In a follow-up filing, BAT reported it snapped up 165,340 shares on April 22, set to be cancelled.
This is key right now: BAT continues to prioritize returning cash to shareholders, even as it invests in next-generation offerings. Back in February, the company set out a £1.3 billion share buyback slated for 2026. For this year, though, BAT warned it’s probably tracking toward the lower bound of its medium-term growth targets.
When a company buys back its own stock, it’s typically aiming to trim down the number of shares out in the market. BAT stated that Merrill Lynch will be handling trades on its own; following changes to UK listing rules, BAT is shifting from posting daily buyback updates to releasing the information once a week.
The U.S. nicotine pouch battle isn’t letting up. Philip Morris trimmed its profit outlook for the year on Wednesday, blaming both intensifying competition and the uncertain future for Zyn. “A complex regulatory environment continues to slow innovation,” CFO Emmanuel Babeau told investors. Jefferies’ Andrei Andon-Ionita pointed to Velo, saying it stands to gain most if Zyn’s volumes stay weak. Reuters
BAT isn’t slowing down. Back in February, Reuters said Velo was grabbing U.S. share from Philip Morris’s Zyn and Altria’s On!. Chief Executive Tadeu Marroco described Velo’s American showing as “extremely encouraged.” Newer smoking alternatives made up 18.2% of group sales in 2025. Reuters
Management hasn’t hidden the cash situation. Back in February, Marroco reiterated his commitment to “sustainable share buy-backs.” Then last week, Chair Luc Jobin told shareholders that BAT sent £6.3 billion back to investors in 2025 via dividends and buybacks, bringing the total since 2020 to roughly £34 billion. Bat
But those risks haven’t disappeared. Earlier this month, Reuters said FDA scientists remain reluctant to greenlight fast-track approvals for nicotine pouches sold under Velo and Zyn, citing ongoing concerns the products may be drawing in youth and new users.
There are other trouble areas for BAT. Back in February, the company pointed to the drag from unregulated vapes on Vuse. Then on April 15, Jobin told investors BAT was looking at the lower end of its 2026 guidance, citing the Middle East conflict as something to monitor—though at that time, it hadn’t made much of a dent in operations.
BAT reported purchasing 165,340 shares on April 22, paying an average price of 4,103.8172 pence apiece. Once these are cancelled, the company will have 2,170,445,387 ordinary shares outstanding, not counting treasury shares.
BAT says it’s not changing what it reveals, just the timing—weekly buyback notices from now on.
