23rd Oct 2013 07:48
LONDON (Alliance News) - British American Tobacco PLC Wednesday said its revenues for the nine-month period increased 0.7%, as movements in some of its key trading currencies continued to adversely impact reported revenues. At constant exchange rates, revenues grew 3.5%, driven by strong pricing. Volumes, however, declined 3.0% from last year. The firm said it remains on track for a year of solid earnings growth.
In an interim management statement for the nine months ended September 30, the company said volume was lower than last year as a result of industry volume declines, excise-driven trade inventory movements in Brazil and the leap year comparator. Total tobacco volume, including cigarettes, declined 3.0% to 521 billion.
According to the firm, growth in many markets, including Bangladesh, Pakistan, Vietnam, the Middle East and the Philippines, was more than offset by lower volumes in Brazil, Russia, Turkey, Ukraine, Egypt and Western Europe.
Nicandro Durante, chief executive of the company said, "The Group continued its good performance against a backdrop of adverse exchange rate movements, lower industry volume and instability in some parts of the world. We have grown revenue and market share, our pricing momentum remains strong and our Global Drive Brands continue to perform well."
Global Drive Brand cigarette volume improved 1.9%, with their market share growing strongly in its Top 40 markets, the company noted.
Volumes of Dunhill increased 9.6%, with good growth in Indonesia, South Korea, while GCC. Kent volume was down 4.0% from last year, due to market declines in Russia, Romania and Ukraine.
Lucky Strike volume fell 5.3%, hurt by market declines in Spain and lower volume in the Middle East. Pall Mall was up by 5.2%, driven by growth in Pakistan, Romania, Chile and Argentina.
Cigarette volume from subsidiaries totaled 501 billion, down 3.2%, with underlying cigarette volume declining 2.4%.
British American noted that its other tobacco products performed well, with growth in Fine Cut tobacco, driven by a 3.3% increase in Western Europe.
The Group launched its first next generation product, Vype, and said its early signs are encouraging.
In London, the shares are currently trading at 3,359 pence, down 0.77%.
Copyright RTT News/dpa-AFX
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