BAT New Zealand Reports Sharp Revenue Decline
British American Tobacco (BAT) New Zealand stated that the illicit tobacco trade was the primary reason for its halved profits and declining revenue in fiscal year 2025. According to financial results submitted to its New Zealand office, its revenue in 2025 was NZ$180.7 million (approximately US$107 million), a nearly 29% decrease from NZ$254 million (approximately US$150 million) in 2024.
Key Takeaways from BAT NZ Financial Results
- BAT New Zealand’s revenue in 2025 was NZ$180.7 million (approximately US$107 million), a year-on-year decrease of nearly 29%.
- BAT New Zealand stated that the financial results reflect an increase in the entry of illicit tobacco into New Zealand without paying excise duty in recent years.
- A study commissioned by BAT NZ and Imperial Brands and conducted by FTI Consulting indicated that the illicit tobacco consumption rate was 27.2% in 2024.
- BAT NZ continues to urge the government to establish a special task force on illicit tobacco and to increase penalties for illicit tobacco.
- Imperial Tobacco New Zealand also saw a decline in revenue and profit in fiscal year 2025.
Illicit Tobacco Trade Blamed for Profit Decline
April 28, 2026. According to The Post, British American Tobacco New Zealand (BAT NZ) believes the illicit tobacco trade is the reason for its profits halving and revenue decline significantly between fiscal years 2024 and 2025.
Revenue Falls Nearly 29% in 2025
BAT New Zealand’s 2025 Revenue Drops Nearly 29%, Company Says Results Reflect Increase in Illicit Tobacco.
Recent financial results submitted to the company’s office show that BAT Holdings (New Zealand), the parent company of BAT NZ, which holds the largest market share in New Zealand’s cigarette, tobacco, and vape markets, saw its annual revenue for the year ending December 2025 reach NZ$180.7 million (approximately US$107 million), down from NZ$254 million (approximately US$150 million) in 2024, a decrease of nearly 29%.
A BAT NZ spokesperson stated that this result “highlights the increase in untaxed illicit tobacco entering New Zealand in recent years.”
Study Estimates Illicit Tobacco Consumption at 27.2%
The company cites research indicating an illicit tobacco consumption rate of 27.2%
BAT NZ, along with another tobacco company, Imperial Brands, commissioned FTI Consulting to conduct a study for the 2024 calendar year, which showed an illicit tobacco consumption rate of 27.2%.
A BAT NZ spokesperson stated that this equates to a loss of approximately NZ$600 million (approximately US$355 million) in GST for New Zealand.
Calls for Stronger Government Action
BAT continues to call for stronger measures to combat illicit tobacco
BAT NZ continues to urge the government to establish a special task force on illicit tobacco, “significantly increase penalties for illicit tobacco,” establish a licensing system for tobacco retailers, and close stores openly selling illicit tobacco to prevent further tax revenue losses.
Financial Indicators Show Broader Business Decline
Financial statements show declines in multiple business indicators
Whether the sales decline is due to consumers quitting smoking, switching to lower-priced brands, switching to non-GST and cheaper vapes, or switching to black market purchases, the company’s office financial statements show a significant decrease in BAT NZ’s trade and other payables, and a marked reduction in ending inventory.
Finished goods inventory in 2025 is NZ$74.4 million (approximately US$44.04 million), compared to NZ$248.5 million (approximately US$147 million) in the previous year.
Imperial Tobacco New Zealand Also Reports Losses
Imperial Tobacco New Zealand Limited, a subsidiary of Imperial Brands, announced its results for the period ending September 2025 in early March.
Its revenue decreased to NZ$511.4 million (approximately US$303 million) from NZ$545 million in the previous year, while profit fell to NZ$2.5 million (approximately US$1.48 million) from NZ$8.2 million.
The company paid NZ$15.5 million (approximately US$9.18 million) to its parent company. Imperial Brands Plc, and its tax payable at the time of the financial statement release was NZ$900,000 (approximately US$530,000).
Smoking Declines While Vape Use Rises in New Zealand
Traditional Smoking Declines in New Zealand, Vape Use Rises
According to the latest 2024/25 New Zealand Health Survey, there are currently approximately 362,000 current smokers in New Zealand, representing 8.3% of the adult population. This proportion has remained largely unchanged over the past three years.
Meanwhile, there are approximately 509,000 daily vape users, accounting for 11.7% of the adult population, and this number continues to rise.
There are 1,311 dedicated vape stores nationwide, one-third of which are located within a five-minute walk of schools.
The Public Health Communications Centre states that adults in the poorest communities are almost three times more likely to use vapes daily than those in the wealthiest communities, at 21.1% and 7.2%, respectively.
