Tobacco.org

BAT volumes dip 3 percent | Reuters 

British American Tobacco (BATS.L), the world's second-biggest cigarette maker, posted a 3 percent dip in underlying nine-month sales volumes on Wednesday but said price rises led to "strong revenue growth."

The maker of Kent, Dunhill, Lucky Strike and Pall Mall cigarettes said third-quarter volumes fell 4 percent, similar to larger rival Philip Morris (PM.N), slightly worse than analysts had forecast, as global unemployment headed higher and as it shed low-margin cheaper cigarette business.

London-based BAT said trading conditions had deteriorated especially in Japan, Russia, Brazil, Italy and South Africa.

"Our consumers are clearly finding the current economic conditions difficult, as unemployment continues to rise," said Chief Executive Paul Adams in a third-quarter statement.

"This has led to a softening of our volumes, although I am encouraged by the growth in our global drive brands and the strong growth in revenue," said Adams, adding volumes of its top four brands grew 4 percent in the nine-month period.

Jump to full article »