Most brokers do not accept USA clients. Will probably be replaced by a global ETF, as I will be focusing less on individual shares in future. However, I have been very satisfied with the return.

The good @Tenbagger2024 has in his contribution Das Leben ist wie eine Schachtel Pralinen Man weiß nie was man kriegt a joint dividend carryforward. As this is difficult to implement in practice, I'll start with my figures from March and add a short report on how the first quarter went. This is followed by a few more insights into my investment approach.

In March, I received a total of € 2,345.17 gross in dividends from 7 distributions. The month is therefore on average for what my pure dividend share portfolio regularly yields. You can find the strongest payers on the table in the picture above, plus my EM dividend ETF also paid out.

According to GQ-Rewind, my time-weighted return in March was minus 0.09%, which is somewhere in the middle of the average. So far so good.

The first quarter was dominated by the war in Iran and had already seen some turbulence before that. From this point of view, I am more than satisfied that my portfolio has gained 9.52% YTD. These YTD figures are up to and including 02.04.2026.

For the overall performance for the benchmark, I took YTD to 31.03.2026, 12:00 noon. And here I am clearly ahead with 14.37% and clearly beat corresponding indices as you can see in the following picture.

This has made it relatively easy for me to deal with the market fluctuations in recent months under the aforementioned circumstances. But I don't have to hide my overall performance in the longer term either. For 1 year and 3 years I am also ahead, only when looking at 5 years do I have to admit defeat to the Nasdaq 100, all others are behind.

And that brings us to the crucial point for me. My investment strategy. I can sleep peacefully in pretty much all market phases without having to get into an operational frenzy, and I have the psychological advantage of the relatively predictable cash flow that comes even when prices fall.

Here I go into more detail on the contribution by @Tenbagger2024
Wer die Wahl hat hat die Qual in more detail.

Lest we misunderstand each other, my approach is certainly not the Holy Grail for relaxed investing, but is purely due to my personal life situation. If you are young and still have an investment horizon of 20 or 30 years, then you have significantly more opportunities for stable wealth accumulation with growth stocks or ETFs. However, you also have to put up with price fluctuations. Perhaps some of you will still find an idea to take some risk out of your portfolio and stay a little calmer in turbulent phases.

How am I currently positioned as at the beginning of 04/2026? My capital is currently 35% in equities, 25% in some bonds and mostly fixed-coupon certificates and 40% in cash.

Cash is quickly described, a quarter in fixed-term deposits, the rest in overnight money hopping with currently 3.25% BBVA, 3.4% Consorsbank and 3.35% Advanziabank, conditions for overnight money fixed until the end of the first half of the year. After that, the search continues. Apart from Consorsbank, the other two pay interest monthly. I also receive the interest on my fixed-term deposit regularly every month via Ford Money. Plannable cash flow month after month at the price of constantly having to open and close accounts. But always better than with most house banks or neo-brokers.

I still have old federal bonds with a coupon of more than 6% and the rest is defined by express certificates with a fixed coupon. The bonds pay out once a year, one at the beginning of January. This has the positive side effect that my tax-free allowance is fully utilized immediately and I no longer have the withholding tax problem with all US dividends. The express certificates all relate to shares that I do not actively hold in my portfolio. As the name suggests, they pay fixed interest. This is paid quarterly and, depending on the certificate, is between 8% and 11.7% p.a. Maturities are usually 18 to 30 months. No matter what the stock markets do or how the individual shares perform, the cash flow comes. Sounds great at first, and it is during the term. The risk lies at the end, on the final valuation date. There, the underlying should not be below the corresponding barrier. This is usually 40 to 50% below the price on the fixing date. Of course, this requires a corresponding valuation and selection of the underlyings. I currently hold certificates on Renk, Hensoldt, Vonovia, BMW, LVMH, Nvidia, Infineon and Heidelberg Materials. New issues that I have subscribed to for the beginning of April are Banco Santander, MTU and Rheinmetall. This is an overview of what I am investing in indirectly.

You can see the current composition of the 25 stocks in my portfolio in my profile. In principle, I invest between 1% and max. 2% of my total capital in the respective shares, and I weight them accordingly via the purchase price. The purchase price also determines my total dividend yield. Measured against my current investments, I achieve a gross return of 8.90% on the capital invested with the dividends already paid and expected in 2026. The different weightings in my portfolio therefore result from the different price gains. My largest position at the moment, $BATS (+1,06 %) currently contains over 50% price gains and is fully invested. Dividend yield measured against the buy-in is well over 8% gross p.a. I am currently only fully invested in 2 stocks. I usually buy in 3 or 4 tranches spread over several months in different market phases. Under no circumstances do I select my shares according to a buy and hold forever principle. That's not possible with high yield. I have to keep a close eye on the "narrow" positions at all times. High dividends are not always a good sign and can also be cut quickly. If a negative trend proves to be sustainable, we restructure. The weighting is reduced and another stock from the same sector is added to the portfolio, or the stock is removed completely. My buy and hold a while motto....

My portfolio is significantly overweighted in the EU/UK at around 60%, with 25% in the USA and the rest in Latin America and Asia. Within Europe, the most represented countries besides the UK are D, NO, DK, A, NL, BE and Sweden. Consumer staples - clearly dominated by tobacco - and financial services are the largest sectors, followed by materials, energy, healthcare, communications and industry.

The primary objective is to preserve capital with a corresponding cash flow. For this reason, I am happy about price gains, the distance to the loss zone increases accordingly and I let the shares run without regularly evaluating the value. As long as there are no serious changes in the earnings situation or even a reduction in dividends, these stocks remain on the fringes of the radar. For the rest, or for new stocks, I set a tight SL to be reasonably protected against the risk of losses and monitor developments more closely.

And of course, sometimes my fingers itch. To this end, I have set myself a limited budget of a maximum of 5% of my total capital to realize short-term trades. These are held in a separate portfolio. These are stocks from the biotech, information technology and commodities sectors, which of course do not pay dividends. This prevents me from getting the wrong idea if I invest too much.

I've also been holding some physical gold for a few years to enjoy the shine 😉

As I'm still a bit at war with AI, this is a rustic compilation of my goals and results. Please forgive me for that. If you have any general or in-depth questions about individual points, please feel free to ask in the comments.

I wish us all a successful new trading week!

Today I would urge caution: a possible sector rotation could be imminent - a classic signal for an incipient bear market. In such phases, capital shifts specifically to defensive sectors. This is exactly what I discuss in this video.

Which sectors are now becoming interesting and why food & beverage is moving into focus. 🧠ro macro assessment Capital could flow out of cyclical stocks Defensive business models are gaining in importance Typical behavior in early bear market phases

The focus is clearly shifting towards stability. 🥤 Sector in focus: Food & Beverage The sector is currently showing clear strength:

• Stable demand regardless of the economy
• High pricing power
• robust margins

A classic refuge in uncertain market phases.

📈 Share 1: Coca-Cola Coca-Cola is currently confirming its defensive strength.

• Forecast for 2026 at the lower end (inflation burdened)
• Nevertheless, stable development despite market turbulence
• Net margin most recently at 27.29%

Business model remains robust as it is based on essential consumer goods

Valuation:

• around 6.14% above fair value
• Rather expensive in the long term, interesting for trading in the short term

Chart analysis:

• new all-time highs reached
• Return to the USD 73-74 range

I expect renewed buying interest here with potential up to around USD 90.

🚬 Share 2: British American Tobacco BAT also shows typical defensive characteristics.

• Moderate growth of around 3-5%
• Increasing share buybacks
• strong demand in Asia (around 19% share of sales)

Additional factor: provisions for legal disputes. Valuation:

• around 52.96% above fair value
• More of a trading case than an investment case

Chart analysis:

• strong rally, currently pullback above GBP 42.50
• Buyers are defending this level

Potential towards GBP 52.50, while prices above GBP 36.50 remain bullish.

⚠️ Conclusion

• Sector rotation could begin
• Defensive stocks move into focus
• Coca-Cola and BAT show relative strength

The market could be moving into a new phase in which stability is more important than growth. Or what do you currently think about $KO (+0,03 %) and $BATS (+1,06 %) ?

https://www.youtube.com/watch?v=0eZgHXGIymo&t=59s

Not one but two companies ;)

$DGE (-1,61 %)
$BATS (+1,06 %) in the video or in the two articles. Have fun :)

https://www.youtube.com/watch?v=mansUDUBtgk

https://steady.page/de/finanzen-anders/posts/8b580e66-6bb0-4882-973c-fbed92e269a0

https://steady.page/de/finanzen-anders/posts/cab289ff-31aa-48a4-b1e8-c5260ca85841

TLDR: Long, but with even more metrics. 😊

February may be the shortest month of the year, but there are no short breaks when it comes to building wealth. While Father Frost came knocking again outside before early spring, I used the time to push ahead with my plans. After the imperfect start in January, this month was all about one thing: sticking with it! Whether it was braving the cold on an evening run, lifting weights, shooting new videos or creating new Carousel posts (even in wooden class on the train), or looking at my depot. Time and time again, it turns out that consistency is one of the keys to success. When discipline is developed, automation runs like clockwork and frees my mind for new ideas and projects related to financial freedom.

While I was enjoying my frugal vacation in MV, it rained not only water but also dividends from the sky as the thaw set in. Do you want to know what's been happening in the engine room of my portfolio and are you interested in a whole new set of metrics for my passive income?

Then it's time for a nice look back, because the bad weather is really getting on my nerves.

DISCLAIMER/RISK WARNING

Please remember that this article is for entertainment purposes only. At no point is it a buy or sell recommendation or professional legal, tax or investment advice. Don't just copy anything I do. I am merely describing what is happening in my portfolios, but in no way guarantee that it is up-to-date, correct or complete.

Investing in the capital market is always associated with risks such as loss of invested capital, price fluctuations, liquidation risks or market risks. In accordance with the current guidelines of ESMA and BaFin, I expressly point out that this review serves exclusively to document my personal investment strategy and does not constitute investment advice within the meaning of the WpIG. The securities presented by me are expressly not to be understood as investment advicebut are merely components of my personal portfolio at the time of reporting. Please also bear in mind that there is a conflict of interest, as I naturally hold the securities myself.

If necessary, seek professional advice and do your own research.

Overall performance

I would like to repeat a fact from my last review. Automation is king. When everything runs by itself, you have room in your head for the finer things in life. Or to do the right thing. More on that at the end.

My key performance indicators for my overall portfolio at a glance:

• TTWROR (month under review): +3.47 % (previous month: +1.64 %)
• TTWROR (since inception): +88,49 %
• IZF (month under review): +55.90 % (previous month: +21.13 %)
• IZF (since inception): +12,50 %
• Delta: +3,172.19 €
• Absolute change: € +4,396.52

Data shown as "since start" is valid since 31.05.2020

Performance & volume

My class leader $AVGO (+4,97 %) loses some weight in the portfolio, but remains in first place in terms of volume and performance. The stock has been running very hot recently. Perhaps the semiconductor market is currently undergoing a rotation to $NVDA (+1,42 %) taking place? The tech sector is also falling $GOOGL (+1,57 %) somewhat, as they have announced high investments. On the other hand $WMT (+0,37 %) continues to grow nicely.

In terms of volume, the $BAC (-0,46 %) is now out of my top 5. $FAST (-1,52 %) The screw manufacturer was already in my top 5 once before and doesn't need to be asked twice.

Also $FDX (-1,83 %) also climbs back into my top 5. The logistics giant had a strong performance in February. Maybe it has to do with the tariff-refund issue or a sector rotation from tech to industrials? They are also spinning off their freight division, further fueling cost-cutting fantasies. That means more cash flow for the "purple ones".

If I take a look at my weakest performers, I notice that the minus at $TGT (-1,42 %) continues to improve. I'm particularly pleased about this, as I always put a little more money in the savings plans for this stock in times of hunger. On the other hand $NOVO B (-0,95 %) continues to fall. At -43 %, they set a new negative record in my portfolio. This shows how intense the competition with $LLY (+1,06 %) has become in the meantime.

Largest individual share positions by volume in the overall portfolio:

Share ( %) of the total portfolio (and associated securities account):

$AVGO (+4,97 %) 2.59 % (main share portfolio)

$WMT (+0,37 %) 1.87 % (main share portfolio)

$FAST (-1,52 %) 1.45 % (main share portfolio)

$GOOGL (+1,57 %) 1.40 % (main share portfolio)

$FDX (-1,83 %) 1.31 % (main share portfolio)

Smallest individual share positions by volume in the overall portfolio:

Share ( %) of the total portfolio (and associated securities account):

$NOVO B (-0,95 %) : 0.35 % (main share portfolio)

$GIS (+0,54 %) 0.51 % (main share portfolio)

$HTGC (+0,98 %) 5.53 % (main share portfolio)

$BATS (+1,06 %) 0.55 % (crypto follow-on deposit)

$CPB (-0,55 %) 0.56 % (main share portfolio)

Top-performing individual stocks

Shares with performance since initial purchase ( %) (and the respective portfolio):

$AVGO (+4,97 %) : +277 % (main share portfolio)

$WMT (+0,37 %) : +112 % (main share portfolio)

$GOOGL (+1,57 %) +106 % (main share portfolio)

$NFLX (+0,35 %) +95 % (main share portfolio)

$OHI (-1,5 %) +88 % (main share portfolio)

Flop performer individual stocks

Shares with performance since initial purchase ( %) (and the respective portfolio):

$TGT (-1,42 %) : -20 % (main stock portfolio)

$CPB (-0,55 %) : -30 % (main share portfolio)

$NKE (-1,39 %) -34 % (main share portfolio)

$GIS (+0,54 %) -35 % (main share portfolio)

$NOVO B (-0,95 %) -43 % (main share portfolio)

Sector allocation of my individual stocks [NEW!]

My top 6 sectors are:

Consumer goods: 18.19%

Miscellaneous: 16.78 %

Technology: 11.92 % [without information technology]

Financials: 11.24

Transportation: 9.61

Trade: 7.13 %

Asset allocation

Equities and ETFs currently determine my asset allocation.

ETFs: 42.0 %

Equities: 58.0

Investments and subsequent purchases

I have invested the following amounts in savings plans:

Planned savings plan amount from the fixed net salary: € 1,040

Savings ratio of savings plans to fixed net salary: 48.80

Planned savings plan amount from the fixed net salary, incl. reinvested dividends according to plan size: € 1,060

In addition, there were the following additional investments from returns, refunds, cashback, etc. as one-off savings plans/repurchases:

Subsequent purchases/one-off savings plans as cashback annuities from refunds: € 55.00

Subsequent purchases/one-off savings plans as a cashback annuity from bonuses: € 39.97

Subsequent purchases from other surpluses: € 0.00

Repurchases from dissolved tax reserve: € 107.98

Automatically reinvested dividends by the broker: € 2.51 (function is only activated for an old custody account, as I otherwise prefer to control the reinvestment myself)

In the month under review, only the fixed savings plans were executed.

Number of unscheduled additional purchases: 4

Passive income from dividends and ETF distributions

Passive income in the month under review

I received € 101.65 in distributions in the month under review (€ 97.31 in the same month of the previous year). This corresponds to a change of +4.46 % compared to the same month of the previous year. Two distributions will fall in the following month, which is reflected in the low to moderate distribution growth YoY.

Number of dividend payments and ETF distributions: 21

Number of payment days: 10 days

Average dividend per payment: € 4.84

average dividend per payday: € 10.17

Passive income YTD [NEW!]

YTD I have received distributions in the amount of € 274.37. If you put this in relation to my annual dividend target of € 2,100, the target achievement of the distribution is 13.07% (target 16.67%). This means that I am just below the target, but this will be turned around by the coming March, which has a higher payout.

The three calculation methods result in the following distribution yields:

YTD distribution yields: 0.31 %

Distribution yields since inception: 4.71 %

Distribution yields YoY: 2.25 %

This means that my overall portfolio has already paid me back around 5% of my initial investment, less than half a percent this year and over 2% within a year. This reflects the comparatively young age of the investment.

The distribution yield grew by 0.89 % YoY. Not a big jump, but a sign of calm, steady dividend growth. The money is working more efficiently than a year ago.

My top payers

The top 5 payers in the month under review were:

$OHI (-1,5 %)

$ZPRG (-0,28 %)

$JEPQ (+0,73 %)

$BATS (+1,06 %)

$ABBV (-1,89 %)

FIRE number [NEW!]

I calculate my FIRE figure from the rolling 12-month expenses (TTM) multiplied by a factor of 25. Even if I don't want to sell any shares later, I use this reciprocal value of the classic 4% withdrawal rate as a conservative guide.

With my current 12-month expenditure of €12,226.88, this results in a FIRE figure of €305,672.00. This is the minimum volume that my portfolio would have to reach in order to theoretically cover my expenses with a 4% withdrawal.

Of course, this figure fluctuates with my lifestyle. But it is not the only metric to determine how long my assets would last in an emergency.

Spending range (runway) [NEW!]

Another method for determining how long I can manage to cover my expenses from my assets is the rolling spending rangealso known as runway also known as the runway. On an annual basis, this is currently 7.49 years or the equivalent of around 89.9 months. Compared to the previous month, it has increased by 0.33 years years. So I am effectively about four months longer "free".

Compared to the same month last year, the increase is even 1.92 years. Although this figure could be even higher, the setbacks caused by the economic policy uncertainties in the TTM period are dampening the trend somewhat. I am still 17.51 years away from my runway target (25 years), which corresponds to the FIRE multiplier. 17.51 years away. This makes it clear that, despite the great progress I have made, I am still at the beginning of my path to complete financial freedom.

The runway stability of -0.22 indicates that my range is currently fluctuating slightly and is not yet stable in an absolutely steady upward trend. A negative value here indicates that the volatility of capital or short-term spending spikes in the rolling period are still slowing down the continuity of growth somewhat.

Performance comparison: portfolio vs. benchmarks

To see where I really stand, I regularly compare my portfolio with the major market ETFs. This allows me to see immediately how well my performance (TTWROR) has done in the current month and since the start compared to the overall market.

My portfolio: +3.47 % (since I started: +88.49 %)

$VWRL (+0,5 %) +1.79 % (since my start: 68.46 %)

$VUSA (+0,81 %) -0.32 % (since my start: 56.83 %)

$IMEU (+0,24 %) +3.92 % (since I started: 84.27 %)

As in the previous month, things are continuing to go up for me, while the USA is faltering. 🤗

Data marked with "since my start" is valid since 31.05.2020.

Key risk figures

Here are my key risk figures for the reporting month:

Maximum drawdown:

since inception: 17.17

Month under review: 0.87

Maximum drawdown duration:

since inception: 702 days

Month under review: 14 days

Volatility:

since inception: 28.36

Month under review: 2.02

Sharpe Ratio:

since inception: 0.41

in the month under review: 27.72

Semi-volatility:

since inception: 21.07

month under review: 1.48

The maximum drawdown of 702 days since the beginning still reminds me of the intensive phase between 2022 and 2023 before the big recovery began. In February, the drawdown was absolutely negligible at just 0.87 %. This clearly shows how stable my portfolio currently was in the icy wind.

My Sharpe ratio is particularly striking this month, having shot up to 27.72. Even if this is of course an upward statistical outlier, it reflects the extremely positive performance combined with very low volatility. Since the beginning, the Sharpe ratio has been a solid 0.41. This means that for every unit of risk, I continuously collect returns above the risk-free interest rate.

Volatility in February was extremely low at 2.02% compared to the 28.36% since the beginning. Even the semi-volatility was only 1.48 %. For me, this is a clear signal: although my portfolio fluctuates minimally, the actual risk of loss remains at a very low level.

What is the conclusion for this month? The confirmation of my strategy: think long-term, let the automation run like clockwork and use the time for new projects. February was a month of stability and growth. This is exactly how it should continue!

Outlook

After setting the course in February, March will be a month of implementation. The provisions for the advance lump sum have already been successfully transferred to the markets. I will transfer a small refund still to be expected to the markets in March, and perhaps I will also be able to look forward to another bonus, which will also be invested. If you want to know which individual stocks are particularly in focus this month, then stay tuned! 😊

When it comes to AI, I will of course keep my finger on the pulse. NotebookLM in conjunction with Gemini has become an absolute game changer for me. It's easy to create a clickable dashboard from prepaid sources that come together in a table, turn your own monthly statement into an audio DeepDive, or get to know completely new metrics that are wonderfully explained. There's still so much to discover when it comes to AI and this forward momentum drives me to make the most of the new technical possibilities and further automate my workflows.

As in the previous month, I'll end this review with a political topic that doesn't really belong here. Nevertheless, I would like to use my small reach to draw attention to an important event. In February, there was an impressive mass demonstration by Iranians in Munich. It was absolutely peaceful. The participants collected their garbage and played our anthem out of gratitude and humility. They thanked the police, not only with words but also with roses. There were no riots and no damage to property. That is absolutely impressive and I think you appreciate that as much as I do.

The word free appears in my branding. Even if it's in a different context there, this little word is my personal concern this month. We can be glad that the exiled Iranians live with us. They and the suffering of their compatriots remind us time and again how infinitely valuable our Western values of freedom, self-determination and democracy are.

In Iran, we are experiencing people who want so much to simply live in freedom like us. Free from religious oppression, free from violence and free from the indoctrination of hatred and terror. They want this so much that they even ask for intervention from the Americans and Israelis and advocate attacks on the regime's positions in their homeland. We have to understand that for them, the rocket fire and bombing is a much lesser evil than having to live in this Islamist hell for even one more day. We must understand that our Western values cannot be taken for granted and that we must take a stand now. An attitude towards our values and an attitude towards those who long for the end of this dictatorship. That is my most important learning for the past month.

I wish the people of Iran, who are still risking everything, that they will finally be freed from this criminal regime. They should finally get to know what is so commonplace for us: democracy, human rights (especially women's rights) and, quite simply, freedom. They deserve it after 47 years of oppression, violence and terror. I sincerely wish them all the best and all the happiness in the world on their path to peace and self-determination. 🍀

Thank you for reading. And now let's start the spring march! ☀️

👉 My related Carousel posts for the review will be published as follows.

08.03.2026: Portfolio review (Key performance indicators, share performance, allocation, sectors, additional purchases and performance comparisons)

09.03.2026: Budget review (income, expenditure, cash flow, ratios, budget compliance and citizen's income check)

10.03.2026: Cash flow review [NEW!] (general, YTD and actual vs. target comparison for passive income, my top spenders, FIRE figure and capital reach)

📲 There are also currently three posts a week: @frugalfreisein. Instagram reels and YouTube shorts currently appear irregularly under channels of the same name, the same applies to videos.

Please pay close attention to the spelling of my alias. Unfortunately, there are too many fake and phishing accounts on social media. I have already been "copied" several times.

👉 How do you personally feel the stock market year has started? (No investment advice!)

Somehow I think I'm rebuilding the depot from @Dividendenopi after.

$BATS (+1,06 %) , $RIO (+2,23 %) , $DTE (-4,97 %) , $PFE (-1,83 %) , $ARCC (+0,62 %) - all identical.

Instead of $ALV (-0,62 %) I have $MUV2 (-0,87 %) , Instead of $HAUTO (-1,4 %) I have $WAWI (-3,55 %) . 🙂

I missed HSBC, I was too slow. The ETF position is different and @Dividendenopi there is even more "smoke" in the portfolio with other tobacco stocks...

At the turn of the year I had already mentioned that I would try to shift a little more from real estate investments into securities, as I already have a very strong imbalance towards real estate.

The first part has now worked. I sold a small apartment that no longer really fitted into my real estate strategy. The money is now (partly) going into the portfolio and into securities that pay out dividends (to overcompensate for the rental income that no longer exists). However, part of the proceeds will probably go into a new real estate project as an equity share, which will then have relatively strong debt leverage, but is not yet signed at the moment.

$TDIV (-0,41 %) , $WINC (+0,53 %) , $BATS (+1,06 %) and $RIO (+2,23 %) are all additions. $MPCC (-1,48 %) is a new addition.

British American Tobacco $BATS (+1,06 %) reported a 2.3% rise in annual profits to £11.28 billion ($15.36 billion) as its Velo nicotine pouch gained market share and sales of its newer e-cigarettes and heated tobacco products increased.

Velo's nicotine pouches are gaining market share from Philip Morris' Zyn $PM (+6,5 %) and Altria's On! $MO (+0,83 %) brand in the key US market, due in part to the higher nicotine strengths and introductory offers that BAT is using to expand the brand.

This contributed to BAT's revenue from a portfolio of newer products, including e-cigarettes and heated tobacco products, growing at double-digit rates in the second half of the year and 7% for the full year.

CEO Tadeu Marroco said in an earnings release that Velo now holds the second-largest market share in the U.S. behind Zyn and that adoption of its Vuse e-cigarette is growing despite continued pressure from unregulated products in the market.

》Highlights 《

● 4.7 million new consumers (to a total of 34.1 million) gained for our smoke-free brands

● Smoke-free products now account for 18.2% of Group sales, an increase of 70 basis points compared to financial year 2024

● Sales growth in new categories accelerated to double-digit levels in the second half of the year, with full-year growth of 7.0

● New category contribution increased by 77.1% to £442 million

● We are on track to reduce the leverage ratio to between 2.0 and 2.5 by the end of 2026, supported by continued strong cash conversion

● Dividend growth of 2.0% to 245.04 pence and share buyback worth £1.3 billion in 2026

》Outlook for 2026《

● The volume of the global cigarette industry is expected to decline by around 2%

》Lower end of our medium-term forecasts《

● 3-5% sales growth, with low double-digit sales growth in new categories

● 4-6% adjusted operating profit growth1,2 - weighted in the second half of the year

● Expected transaction-related exchange rate impact of approx. 1%

● 5-8 % adjusted growth in diluted earnings per share

● We expect a negative exchange rate effect of approx. 3% on adjusted diluted EPS growth

● Net financing costs are expected to be c. GBP 1.8 billion, subject to interest rate fluctuations

● Gross capital expenditure in 2026 will amount to approximately GBP 750 million

● Operating cash flow conversion will exceed 95%

● Leverage within our corridor of 2.0-2.5x adjusted net debt/adjusted EBITDA by year-end

● Commitment to sterling dividend growth and £1.3bn share buyback.

》Conclusion《

The conversion from traditional to new alternatives continues to progress successfully, further market share has been gained in important key markets and the forecast is for further constant growth with simultaneous debt reduction 👍🏻

British American Tobacco p.l.c. $BATS (+1,06 %) announced today that it will extend the term of office of Luc Jobin, Chairman of the Supervisory Board, by up to two years until the company's Annual General Meeting in April 2028. The search for a successor will continue in the meantime.

Jobin, who has served on the Board since July 2017 and became Chairman in April 2021, will exceed the maximum term of office recommended by the UK Corporate Governance Code when he completes nine years on the Board in July 2026.

According to the company, the decision was preceded by a comprehensive succession process led by outgoing Senior Independent Director Holly Keller Koeppel and the Nomination Committee with the support of external advisors.

"Luc is a proven and well-respected Chairman who will continue to effectively lead the Board and provide thoughtful input and support to management as it implements the Group's transformation agenda," Koeppel said in the press release.

The board found that extending Jobin's term "is in the best interests of BAT at this time", although this is a departure from governance recommendations. The company said the extension would remove uncertainty during the Group's transformation while providing the flexibility to appoint a suitable successor.

Koeppel, who has served on the Board since July 2017, will step down at the end of the 2026 Annual General Meeting. Assuming her re-election, Karen Guerra will assume the role of Senior Independent Director and lead the ongoing succession process for the Chair.

Jobin thanked Koeppel for her service to the Board and welcomed Guerra to her new role. Her experience will be "invaluable as the search for my successor continues".