British American Tobacco's New Categories business grew 18% at constant exchange rates in the first half, outpacing the wider group as the company reported £12.235 billion in total revenue.
Group revenue was 1.4% higher than in the year-earlier period on a reported basis. Excluding exchange-rate movements, it increased 2.9%, according to the company's half-year report covering the six months to June 30, 2026.
New Categories brought in £1.928 billion. Revenue from the segment in the United States rose 58.1%, also at constant exchange rates. The figures show faster growth in this business than across the company as a whole.
Results varied among the category's product lines. At constant exchange rates, Modern Oral revenue rose 65.9% and Vapour revenue increased 5.3%, while HP revenue fell 11.7%. Products BAT classifies as smokeless made up 19.8% of group revenue during the period.
BAT attributed New Categories growth to Modern Oral and a return to double-digit growth in U.S. Vapour. Chief Executive Tadeu Marroco said growth in the category had “accelerated to 18.0%.”
The company expected New Categories to grow at a mid-teens rate in 2026. Its report also outlined second-half rollouts of Velo Max and selected Vuse flavors.
