London, Jan 17, 2026, 08:02 (GMT) — Market closed
- BAT shares dropped 0.3% to 4,326 pence in London on Friday.
- The South African unit intends to close its sole cigarette factory by the end of 2026, blaming illicit trade for the decision.
- Investors are now focusing on the buyback pace and the full-year results due February 12 for the next catalyst.
British American Tobacco shares slipped 0.3% to finish at 4,326 pence (£43.26) on Friday in London.
Investors are using the weekend pause to parse what the South Africa plant decision reveals about illegal cigarette sales and pricing strength in crucial markets. Focus on cash returns—dividends and buybacks—remains sharp ahead of the next trading day.
British American Tobacco South Africa will shut its only local manufacturing plant by the end of 2026, threatening about 230 jobs. The Heidelberg facility is operating at just 35% capacity. According to the company and its regulatory head, Johnny Moloto, illicit cigarettes now make up roughly 75% of South Africa’s market. “With approximately 75% of the South African cigarette market now estimated to be illicit, continued local manufacturing has become unviable,” Moloto said. Reuters
On Friday, a separate filing revealed BAT repurchased 100,090 ordinary shares on Jan. 15 under its buyback program and intends to cancel them. The company reported a volume-weighted average price of 4,316.1662 pence, reflecting each trade weighted by size. After this transaction, BAT will have roughly 2.18 billion shares outstanding, excluding treasury stock.
Buybacks are standard practice for major tobacco firms, yet traders keep a close eye on their pace. A consistent repurchase program can support the stock during slow trading, whereas any dip often sparks speculation about cash flow or shifts in management focus.
In the U.S., BAT’s ADR closed Friday roughly 0.2% higher, finishing at $58.22.
Yet the move in South Africa has a tougher side. If illicit trade continues to grab market share, legal volumes might drop faster than companies can make up through pricing. Plant shutdowns often trigger one-off expenses and stir political controversy, even when they’re economically justified.
Feb. 12 marks the next major milestone, with BAT set to release its full-year 2025 results. Investors will be watching closely for changes in guidance, updates on buyback plans, and the company’s stance on illicit trade and manufacturing choices in key regions like South Africa.
