How British American Tobacco Has Fared During 2012

Source from:  Fool.co.uk  11/12/2012

British American Tobacco (LSE:BATS) (NYSE: BTI.US) has gained 4% to 3,165p so far during 2012, making the share one of this year's more reliable performers in the FTSE 100 (FTSE Index: EO100.FGI - news) (UKX). During the same time, the blue-chip index has gained 5% and generated a total return of 9%.

The world's second largest tobacco company, which operates in more than 180 countries, has proved to be quite resilient in the face of a challenging trading environment where industry sales are under pressure.

In February, British American Tobacco's results for twelve months ending 31 December 2011 reported a successful year for the company. The group's adjusted operating profits, underlying earnings per share and total dividend for the year were all up by 11%.

Then in April, the group reported an increase in volumes for the first three months of 2012. At the time Nicandro Durante, BAT's chief executive, said:

"We have grown volumes and Global Drive Brands and have achieved good growth in revenue, with continued pricing momentum, although currency headwinds have adversely affected results. It is a strong start to another year of anticipated good earnings growth."

In July, BAT lifted its first-half dividend by 11%, however sales were flat at £7.4 billion within its half-year report.

More recently, the group reported its third-quarter update. Underlying sales improved 4% during the first nine months of the year, and its four Global Drive Brands achieved overall volume growth of 3%.

BAT currently pays a dividend of 131p per share and yields around 4%.

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