BAT's Volumes Increased in First Quarter

Source from:  tobaccojournal.com May 7, 2008 05/09/2008

British American Tobacco reported group volume sales of 158 billion for the three months to March 31, a one per cent increase on those of the first quarter of 2007. Global Drive Brand (GDB) sales were said to have risen by 23 per cent, with about one third of that rise coming from brand migrations. Sales of Kent and Pall Mall each increased by about 30 per cent, while sales of Lucky Strike were up by about 16 per cent and those of Dunhill were up by about eight per cent. Sales of premium brands improved by six per cent and now represent 33 per cent of total volumes. BAT's associate companies, mainly ITC, Reynolds American and Skandinavisk Tobakskompagni (ST), reported volumes of 54 billion. BAT's reported profit from operations, at £807 million, was 18 per cent higher, an increase that is largely unchanged if exceptional items are excluded. Profit from operations, excluding exceptional items, would have been 10 per cent higher at comparable rates of exchange. Reported group revenue was said to have increased by 14 per cent to £2,541 million as a result of favorable exchange rates, improved pricing and a better product mix. Revenue would have increased by six per cent at comparable rates of exchange. In announcing the results, chairman, Jan du Plessis, said that work was continuing on BAT's acquisitions in Turkey and Scandinavia, which were announced in February. "We have now received the approvals from Turkey's High Board of Privatization and the Competition Authority for the acquisition of the cigarette assets of Tekel,” he said. "As a result, we expect to complete this transaction around the middle of the year. "The ST acquisition remains subject to EU competition approval.” Summing up, du Plessis said the year had clearly got off to a "great start”, with profit growth in all of BAT's regions. "While the normal caveats about not reading too much into any particular quarter still apply, the group's unrivalled spread of business between developed and developing markets should continue to serve shareholders well,” he said. Enditem