BAT's Volumes up Seven Per Cent

Source from:  Tobacco Reporter 05/07/2009

British American Tobacco's volume sales during the three months to the end of March, at 169.5 billion, were increased by seven per cent on those of the first three months of 2008, mainly as a result of the acquisitions of Skandinavisk Tobakskompagni (ST) and Tekel. Sales were increased by 42.5 per cent to 31.5 billion in the company's Africa and Middle East region, by 18.3 per cent to 29.7 billion in Western Europe, and by 0.9 per cent to 43.3 billion in the Asia-Pacific; but they were down by 3.3 per cent to 37.9 billion in the Americas, and by 6.8 per cent to 27.1 billion in Eastern Europe. In an interim management statement for the three months, BAT said that, excluding the benefits of the ST and Tekel acquisitions, volumes were in line with last year, though premium volumes were slightly ahead. Sales of the company's four global drive brands were said to have grown by seven per cent, with Dunhill up by eight per cent, Kent up by three per cent, Lucky Strike up by four per cent and Pall Mall up by 11 per cent. BAT said that group revenue for the three months grew strongly in constant currency terms, driven by good pricing momentum and volume growth from the acquisitions made in the middle of last year. All regions had contributed to this good result. 'Revenue benefited further from the favorable impact of significant exchange rate movements which more than offset the adverse transactional impact of exchange rates on costs,' it said. BAT said that general trading conditions had become tougher during the quarter with lower industry volumes in a number of key markets and a deceleration of growth in the premium segment. In some markets, particularly in Central and Eastern Europe, there had been down-trading to illicit trade as a result of excise increases. Enditem