BAT Volumes up Slightly in First Six Months

Source from:  tr.itsmyiq.com Aug 1, 2008 08/04/2008

British American Tobacco group volume sales by subsidiaries during the first six months of this year, at 334 billion, were up by one per cent on those of the first six months of last year. In reporting its interim results, BAT said that the increase in volumes had been mainly the result of good performances by its four Global Drive Brands, which had achieved volume growth of 20 per cent - with around a third of the rise coming from brand migrations. Reported group revenue increased by 15 per cent to £5,457 million as a result of favorable exchange rates, improved pricing and a better product mix. Revenue would have increased by six per cent at constant rates of exchange. 'The reported profit from operations was 16 per cent higher at £1,724 million with a similar increase if exceptional items are excluded,' the company said in a note posted on its website. 'All regions except Latin America contributed to this strong result. Profit from operations, excluding exceptional items, would have been seven per cent higher at constant rates of exchange. 'Adjusted diluted earnings per share rose by 16 per cent, principally as a result of the strong growth in profit from operations and favorable exchange movements.' The acquisitions of Tekel and Skandinavisk Tobakskompagni, which were completed on June 24 and July 2 respectively, were said not to have had any material impact on the profit from operations for the six months to June 30. "These very good interim results demonstrate the strength of British American Tobacco's business, as a result of the excellent growth from our Global Drive Brands, our leading market positions and our broad geographic spread," said chairman, Jan du Plessis. "While not immune from the consequences of an economic slowdown, we can certainly look to the future with more confidence than most." The board declared an interim dividend of 22.1p, which represents a 19 per cent increase on that of last year, to be paid on September 17. Enditem