It has been a good 2025 so far for shareholders in dull defensive stocks like British American Tobacco (BATS), as markets get whipsawed one way and another by on-off tariff announcements and trade deals.

At the time of writing, BAT shares are up 430p or 15% year-to-date, on top of which the firm has paid out two dividends totalling roughly 119p, so the total return has been more like 19%, while the FTSE 100 has eked out a 5% gain.

Therefore, investors will be looking for a reassuring pre-close first-half trading update on 3 June and possibly a small increase in full-year guidance.

At the AGM in April, chairman Luc Jobin described 2025 as ‘a deployment year’ where the company builds on its investments, returning to profit growth in the U.S and gradually deploying its New Category product innovations as the year unfolds.

The key things to look for will be the outlook for total revenue, which the consensus forecasting around £26.2 billion this year, allowing for currency headwinds, and new category product revenue, which is seen around £3.9 billion against £3.4 billion last year.

Analysts and investors will also be eyeing the adjusted operating margin, which is seen flat at around 44% excluding the Canadian business and the impact of a £6.2 billion provision to settle litigation in the country after six years of legal proceedings. 

Disclaimer: The author (Ian Conway) owns shares in British American Tobacco.

UK UPDATES OVER THE NEXT 7 DAYS

FULL-YEAR RESULTS

2 June: Sirius Real Estate

3 June: Pennon

4 June: B&M European Value Retail, Discoverie Group, Ninety One

5 June: CMC, Mitie, Wizz Air

FIRST-HALF RESULTS

3 June: Gooch & Housego

4 June: Paragon Banking, Ramsdens

5 June: Dr Martens

TRADING ANNOUNCEMENTS

3 June: British American Tobacco

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