London, Jan 22, 2026, 08:40 GMT — Regular session
Shares of British American Tobacco (BATS.L) climbed 1.9%, hitting 4,327 pence early Thursday in London — up 79 pence from Wednesday’s close.
The company reported purchasing 161,326 shares on Jan. 21 as part of its buyback program, at prices ranging from 4,214 to 4,295 pence. BAT stated the volume-weighted average price—the average weighted by trade size—was 4,251.0001 pence, and confirmed it plans to cancel the shares.
These notices might seem routine, but they carry weight in a market still driven by cash returns. In tobacco, consistent buyback demand can rival the impact of a solid quarterly report.
BAT has been doubling down on that strategy as it pushes its “new categories” segment in vapes and nicotine pouches. Back in December, the company flagged that revenue and profit growth for 2026 would likely hit the lower end of its forecast, citing tougher U.S. vape competition and regulatory hurdles. Still, it announced a £1.3 billion buyback plan for 2026. “I’m trying to be cautious for 2026,” CEO Tadeu Marroco said at the time. Reuters
UK inflation hit 3.4% in December, driven up by higher airfares and tobacco costs. The move rattled rate expectations and brought defensive stocks back into focus.
U.S. regulators remain a key factor. The Food and Drug Administration announced it will hold an expert panel on Jan. 22 to assess Philip Morris-owned Swedish Match’s request to market ZYN nicotine pouches with a lower-risk claim. Investors typically track these reviews closely for signals that could apply broadly across the nicotine pouch sector.
But downside risks remain close at hand. BAT has halted a pilot rollout of its unlicensed Vuse One disposable vape in the U.S., following increased FDA scrutiny of unregulated products — a clear sign that enforcement and licensing demands can shift the landscape fast.
Peers are shifting too, though mainly in their leadership ranks. Imperial Brands announced John Rishton as its new chair this week, marking another executive shuffle in a sector that projects stability even as its rules keep evolving.
BAT shareholders are gearing up for the next big event: the preliminary results for 2025, set for Feb. 12. Investors will be scrutinizing any shifts in share buyback strategy, debt management, and the company’s outlook on vaping and oral nicotine in the U.S.
