Methodology
Six largest publicly traded tobacco companies (i.e. close to 95% of the total market capitalization of all publicly traded tobacco & nicotine companies). Total Shareholder Return (TSR) expressed as a percentage, including price appreciation and dividends paid in a given period. In US$ terms: US ADR for BAT (ticker: BTI), currency converted for Imperial Brands, Japan Tobacco and ITC.
TSR = [(Last Price − Initial Price) + Dividends] / Initial Price
Major Tobacco Companies: TSR H1 2025
| (US$) | Last Price | Initial price | ΔPrice | Dividend | Return | TSR |
| PMI | 182.12 | 120.35 | 61.77 | 2.70 | 64.47 | 53.6% |
| BAT | 47.33 | 36.32 | 11.01 | 1.56 | 12.57 | 34.6% |
| Imperial | 39.50 | 31.94 | 7.56 | 1.22 | 8.78 | 27.5% |
| Japan Tobacco | 29.5 | 25.94 | 3.56 | 0.65 | 4.21 | 16.2% |
| Altria | 58.63 | 52.29 | 6.34 | 2.04 | 8.36 | 16.0% |
| ITC | 4.86 | 5.37 | -0.51 | 0.17 | -0.34 | -6.4% |
| SP500 | 6,205 | 5,882 | 323 | 38 | 361 | 6.1% |
| XLP | 80.97 | 78.61 | 2.36 | 0.99 | 3.35 | 4.3% |
Returns in Local Currencies
| LC | Last Price | Initial price | ΔPrice | Dividend | Return | TSR |
| BAT (£) | 34.63 | 28.80 | 5.83 | 1.20 | 7.03 | 24.4% |
| Imperial (£) | 28.77 | 25.53 | 3.24 | 0.94 | 4.18 | 16.4% |
| JT (¥) | 4,248 | 4,080 | 168 | 97 | 265 | 6.5% |
| ITC* (₹) | 416.45 | 460.2 | -43.75 | 14.35 | -29.4 | –6.4% |
Currency Fluctuations
| Last Price | Initial price | ΔPrice | %Price | Average Price | |
| £/$ | 1.373 | 1.251 | 0.122 | +9.8% | 1.296 |
| $/¥ | 144.0 | 157.3 | -13.3 | -8.5% | 148.5 |
| $/₹ | 85.72 | 85.64 | 0.08 | -0.1% | 86.08 |
Commentary:
Philip Morris International (PMI) continued to lead the tobacco sub-sector in terms of Total Shareholder Return (TSR) – in both Q1 2025 and Q2 20025. British American Tobacco (BAT) returned almost similar to PMI in Q2 2025 after a relatively muted share price performance in Q1 2025. Altria’s TSR in Q2 2025 was negative as shares fail to break above the $60 level. Imperial Brands’ Q2 2025 TSR affected negatively by the CEO transition plan – with Q2 returns at half of the Q1 returns. Japan Tobacco, a laggard in the transformation to new nicotine products, continues to underperform the relevant peers (PMI & BAT). ITC (operating only in India) is the only tobacco major with negative TSR in H1 2025: subdued demand conditions in the overall consumption (FMCG) space, increasing input costs (leaf, wood etc.) as well as the circumstantial factors continue to put pressure on ITC’s profitability and results.
Overall, tobacco majors significantly outperformed the overall market (S&P500) and the sector (Consumer Staples) in H1 2025 in terms of Total Shareholder Return.
