London, Jan 16, 2026, 08:44 GMT — Regular session
- Shares of British American Tobacco edged sideways in early London trading following a new buyback announcement
- The group is also processing plans to stop cigarette manufacturing in South Africa by the end of 2026
- Investors are eyeing BAT’s full-year 2025 results, due in February
British American Tobacco BATS.L shares dipped roughly 0.1%, trading at 4,336.5 pence (£43.37) by 0844 GMT Friday. The company flagged another series of share buybacks, while investors reacted to news of a planned closure of its South African cigarette factory.
This update is significant as BAT relies on buybacks and dividends to maintain visible cash returns, despite challenges from illicit trade and changing nicotine regulations. The South Africa development provides concrete evidence of how rapidly legal volumes can decline when enforcement falters.
The stock closed Thursday 2.33% higher at £43.39, beating the FTSE 100’s modest 0.54% gain.
BAT announced it purchased 100,090 ordinary shares on Jan. 15, with prices ranging from 4,256 pence to 4,333 pence. The volume-weighted average price came out to 4,316.1662 pence. The company intends to cancel these shares, leaving 2,178,199,462 shares outstanding, excluding treasury shares.
A share buyback occurs when a company buys back its own stock, usually to reduce the number of shares outstanding. BAT confirmed these purchases are part of the programme it unveiled in March 2024.
BAT’s South African arm announced on Thursday it will shut its only cigarette factory in Heidelberg, Gauteng, by the end of 2026, threatening roughly 230 jobs. Johnny Moloto, head of corporate and regulatory affairs at BAT Sub-Saharan Africa, said illicit cigarettes now account for around 75% of the local market, making domestic production “unviable.” Reuters
BAT didn’t specify the financial fallout from the closure in its statement. Traders usually see these announcements as isolated events, unless they suggest a wider trend of lost legal share elsewhere.
Friday’s price moves imply investors are leaning on the buyback as the near-term boost, with the South Africa ruling lingering as a more distant operational threat.
But here’s the catch: if illicit supply keeps expanding and legal sales drop quicker than prices can compensate, companies will be forced into deeper capacity cuts. That would ramp up the odds of harsher tax or enforcement actions. Plus, if the buyback pace slows even a little, the steady demand propping up the shares would vanish.
BAT is set to release its full-year 2025 results on Feb. 12. Investors will be watching closely for updates on guidance, cash returns, and the progress of its non-combustible products as cigarette sales continue to decline.
