British American Tobacco reported a £6.2 billion hit from a long-running lawsuit in Canada on Thursday, and warned of "significant" headwinds in Bangladesh and Australia in 2025 after annual revenue missed forecast.
Health risks associated with tobacco and smoking alternatives have been under regulatory scrutiny for several years, and cigarette makers are facing several challenges globally from policy shifts to anti-tobacco activism.
BAT, the maker of Lucky Strike and Dunhill cigarettes, and some of its rivals were set to pay C$32.5 billion (£18.22bn) to settle a long-running case in Canada, but some parties, including Philip Morris International's Canadian affiliate, have since objected to the proposal.
In Australia and Bangladesh, meanwhile, BAT said tax increases would hurt its tobacco business.
Chief executive Tadeu Marroco said these represented “significant regulatory and fiscal headwinds” that would dent its performance this year, but their impact would recede into 2026.
BAT's investments would also start to pay off by the end of the year, helping bring the company back to its targeted revenue growth of between 3 and 5 per cent by 2026, he said.
The company expects 2025 revenue to grow about 1 per cent at constant currency rates, and performance is projected to be weighted towards the second half of the year.
Revenue for the 12 months ended December 31 was £25.87bn and adjusted profit stood at 362.5 pence per share, compared with expectations of £26.11bn and 362.2 pence, respectively, according to a company-compiled poll.
Revenue was down 5.2 per cent, primarily attributed to the sale of its businesses in Russia and Belarus in 2023, coupled with unfavorable foreign exchange rates. However, the tobacco giant highlighted a 1.3 per cent organic revenue growth at constant rates, fueled by an 8.9 per cent surge in its New Categories segment, which includes vapour, heated tobacco, and oral products.
BAT's combustibles business demonstrated resilience with a 0.1 per cent organic revenue increase, driven by pricing strategies that offset lower volumes.
The company also announced a significant turnaround in profitability, reporting a £2.73bn profit from operations, a stark contrast to the £15.75bn loss in 2023. This improvement, however, includes a £6.2 billion provision for a proposed settlement in Canada.
Reported profit from operations of £2,736m (2023: loss of £15,751m) with 2024 including the £6.2bn provision in respect of the proposed settlement in Canada, while 2023 was negatively impacted by one-off impairment charges largely in the US.
BAT's New Categories segment emerged as a key growth driver, with a £251 million increase in contribution, and the category's margin reaching 7.1 per cent, a substantial 7.1 percentage point rise from the previous year. The company's adjusted organic profit from operations also saw a modest 1.4 per cent increase.
Looking ahead, BAT plans to continue its focus on New Categories, aiming to accelerate growth and profitability in this segment. The company said it added 3.6 million adult consumers (to a total of 29.1 million) of its smokeless products, which now account for 17.5 per cent of group revenue, an increase of 1.0 ppts vs FY23.
Staff at a Bottesford store were threatened with a hammer during a brazen robbery last week, Leicestershire Police said.
The incident, which occurred just after 10:30 am on 12 March, saw a male suspect enter a shop on Grantham Road and brandish the weapon before jumping over the counter. He then proceeded to steal a quantity of cigarettes before fleeing the scene in a silver Volkswagen Tiguan.
No staff members were injured during the ordeal, police confirmed.
Detective Constable Gareth Pallister, leading the investigation, has appealed for witnesses and information.
“While we've already spoken to several people about this incident, I'm appealing to the wider public to identify the person responsible,” Pallister said.
“I'm particularly keen to speak to anyone who saw the silver Volkswagen around the time it happened – and particularly if you have any doorbell, CCTV or dashcam footage. Anything you're able to provide could assist the investigation.”
This violent incident underscores the growing threat faced by retail staff, a trend highlighted in the recently released 2025 ACS Crime Report.
The report, published last week by the Association of Convenience Stores (ACS), revealed a record level of theft against convenience store retailers, with an estimated 6.2 million shop theft incidents in the past year, up from 5.6 million the year before.
The report also detailed over 59,000 incidents of violence and 1.2 million instances of verbal abuse in the sector.
Heavily criticising the upcoming disposable vape ban, traders in Wes Streeting's constituency of Ilford North have raised the concern that the new law will hurt small businesses and will backfire badly as the product will be available illegally even after the ban.
According to a recent survey by We Vape, 95 per cent of UK traders believe the ban will hurt small businesses.
Some 80 per cent also believe shopkeepers will continue to sell illegal vapes after the disposables ban is enforced on June 1 and certain flavours are prohibited as part of the Tobacco and Vapes Bill currently working its way through parliament.
The survey, commissioned by campaign group We Vape, targeted over 800 independent traders and franchises via industry and trade fair WhatsApp groups to gather their views on the forthcoming Tobacco and Vapes Bill and its implications for small businesses.
The poll showed 98 per cent did not support a ban on e-liquid flavours, while 57 per cent knew of shops already selling illegal products.
Business owners were asked 'with the introduction of a vape tax and proposed flavour restrictions, do you think there will be less people visiting your shop to buy vapes?', with 93 per cent answering 'yes'.
The poll also revealed 97 per cent thought restricting vapes would lead to an increase in cigarette use. When asked if 'vapers will try and source illegal vapes as a result of the proposed restrictions?', 96 per cent said yes.
With 167 company responses, the data is considered the most comprehensive retailer research of its kind into government plans to create a smoke-free generation.
Gurdeep Chahal, owner of Somerville Convenience Store, said the disposable vape ban could force his shop to close.
"The bill is only going to make the problem of illicit products worse here and I can't believe my own MP is pushing something that could put me out of business," reported quoted Chahal as saying.
"It's handing the sale of cigarettes to criminals and is going to make it harder for my customers to move to smoke-free products.'
After 45 years of dedicated service to the Brookeborough community, independent retailer Benny McClave is retiring from his beloved Nisa store.
A fixture of the village in Northern Ireland, ‘Benny’s Shop’ has been more than just a convenience store - it has been a cornerstone of the community, a place where friendships were formed, and countless memories were made.
Originally from Roslea, Benny took over the shop in 1978 and spent a year renovating it before opening in 1979. Over the years, the store evolved through different fascias before joining Nisa, but its commitment to the local community never wavered.
Reflecting on his time behind the counter, Benny said: “It took me a long time to get to know people and their faces, and I suppose it took them a long time to get to know me too.”
Throughout his career, Benny has been much more than a retailer. He has been a steadfast supporter of local causes, regularly donating to schools and community projects.
One of his most cherished contributions was organising Santa’s annual visit to the store, a tradition that brought joy to generations of children.
With Santa arriving on a trailer to hand out gifts, and adults treated to a warm bowl of soup, it became a highlight of the festive season. Even after the disruption caused by COVID-19, Benny’s legacy endured, with the local playgroup taking on the responsibility of continuing the tradition.
Benny, who handed over the store on Friday, 7 March 2025, acknowledged that saying goodbye was not easy.
“Of course, I will miss it,” he said. “I’ll miss the company and the pleasure of serving the customers. It’s been a lifetime - 45 years - I’m bound to miss it.”
Nigel Maxwell, Regional Retail Manager in Northern Ireland for Nisa, paid tribute to Benny’s incredible contribution: “Benny is the definition of a true community retailer.
"For 45 years, he has served Brookeborough with dedication, kindness, and a wonderful sense of humour. His generosity and commitment to local causes have made a lasting impact, and he will be greatly missed by customers, colleagues, and the wider Nisa family.
"We wish him all the best in his well-earned retirement. Although Benny is stepping away from the shop, he and his family will remain in Brookeborough, a place he fondly refers to as home.
"As he hands over the reins, the entire community celebrates the remarkable career of a man who truly made a difference.
Employment Rights Bill has been passed at all its stages in the House of Commons and will now be considered in the House of Lords.
The landmark legislation seeks to end unfair employment practices and make work more secure.
The Employment Rights Bill will ban exploitative zero-hours contract and provide a right to a regular hours contract and make Statutory Sick Pay available from day one of absence and to all workers, regardless of income.
Day-one access to employment rights, including challenging an unfair dismissal, will be granted while the bill require employers to protect staff from customer harassment.
The bill also give trade unions the right to access workplaces, to recruit and organise workers, simplify the trade union recognition process to give workers a voice and introduce statutory rights for workplace equalities representatives.
The bill will limit the use of fire and rehire and create a fair work agency to put enforcement of employment rights into a single body.
The Bill will now proceed to the House of Lords.
Although it may be a few months before we have the final version, and much of the detail will in any event remain to be set out in regulations, employers may wish to start considering how the new rights will impact their business.
Commenting on the progression of the bill, Paddy Lillis – Usdaw general secretary says,“Usdaw has long campaigned for a new deal for workers and the Employment Rights Bill delivers on that.
"This landmark legislation will contribute to Labour’s mission to grow the economy, raise living standards across the country and create opportunities.
"The Bill also builds on the action already taken by Labour in Government to significantly increase minimum wage rates from April, with the Low Pay Commission for the first time required to take into account the cost of living and make progress towards ending rip-off youth rates.
“Labour won the last election on the promise of change and because the Conservatives failed to grow our economy, didn’t protect workers in the cost of living crisis and repeatedly attacked workers’ rights and trade unions.
"It is disappointing that Tory MPs were whipped into opposing the Employment Rights Bill, which only demonstrates that they’ve not listened to voters or learnt the lessons of 14 years of failure.
“It was no surprise that Reform leader Nigel Farage voted against the Bill. It is clear that Reform is no friend of working people. They continue to seek to divide workers, rather than supporting critical measures to improve their working lives.
"Recent polling shows that voters in every constituency overwhelmingly support key measures in the Bill. We will be asking Members of the House of Lords to give their full backing to this crucial legislation and ensure that it is delivered in full.”
“This historic legislation will help end years of low-paid, insecure employment, which failed our economy, businesses and working people. The Employment Rights Bill will help secure economic growth by improving productivity after years of stagnation.
"It will help stop rogue employers undercutting those who treat their staff properly, while giving workers security, respect and the decency of an income they can live on.”
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Highland Spring Group secures Bank of Scotland and Barclays backing
Highland Spring Group, leading UK producer of natural source waters, said it successfully completed a competitive process to refinance its business.
The company has announced that the Bank of Scotland and Barclays, as its funding banks, will provide support as it progresses towards its stated ambition of £200 million sales by 2030.
In 2023, the business grew its sales in the year by 15.5 per cent to £130.6m and the Highland Spring brand consolidated its position as the UK’s number one plain water brand for a seventh successive year.
The company said the financial backing, which includes term and revolving credit facilities of £50m, will further accelerate the evolution of the brand and business to meet the growing demands of retail partners and consumers for healthy, high-quality, British products.
“The Bank of Scotland and Barclays funding provides a springboard for us to further invest in our business to boost sustainable growth. This package reflects their confidence in our strong operational and market performance, talented team, and iconic brand,” John Young, finance director, Highland Spring Group, said.
“We are delighted to work with both organisations as we continue to scale up and bring our exceptional products to even more retailers and customers across the UK.”
Building on the strength of the Highland Spring brand continues to be the main priority of the business, with an emphasis on expanding the business’s portfolio of products and packaging formats. A recent successful launch into the 400 million litres flavoured water category, with a new Highland Spring Flavoured Still Water range was supported by a £10m investment at the group’s main site in Blackford, Perthshire which will provide circa 25 per cent of extra capacity.
The group’s dedicated rail freight facility in Blackford, Perthshire transports 40 per cent of the water supplied from the main bottling plant by rail, removing 8,000 HGV movements from the roads, and saving over 3,000 tonnes of CO2 every year. This landmark project supports the businesses decarbonisation roadmap which aims to reduce emissions across their entire operations from source to shelf.
“Highland Spring Group was the first major water brand to introduce a 100% recycled (cap and label excluded) and recyclable bottle in the UK in 2019 and it is clear that its drive to innovate, grow the business, and prioritise environmental sustainability remain its top priorities,” Simon Sweeney, director at Bank of Scotland, said.
“We’re pleased to support the business with this financing package as it progresses in its next chapter of delivering its ambitious growth plans, including initiatives which reduce carbon emissions across its operations.”
Jamie Grant, head of Barclays corporate banking in Scotland, said: “We are committed to supporting lending via our £22bn Barclays Business Prosperity Fund and so are very pleased to have been chosen as a banking partner for Highland Spring. We look forward to supporting their exciting plans going forward.”