BAT cigarette sales fall in Q1

28th Apr 2010 07:03

British American Tobacco did well in the first quarter despite weaker volumes, helped by last year's acquisition of Indonesia's Bentoel and currency moves.The world's second largest tobacco company said revenue for the three months grew in constant currency terms across all regions, and was particularly strong in Africa and Middle East and Americas.But volumes dropped to 168 billion from 170 billion in 2009, with a 2 billion increase in Asia-Pacific easily cancelled by declines in both Western and Eastern Europe. BATS blamed weakness in Brazil and Romania for a 4% slip in organic volumes, but key brands still outperformed. Dunhill jumped 24% following the migration of Carlton to Dunhill in BrazilLucky Strike grew by 8% and Pall Mall by 10%, although Kent volumes dropped 12% due to industry volume declines in Japan, Russia and Romania. "Our consumers are clearly finding economic conditions difficult and volumes suffered as a result of market size declines," said boss Paul Adams."However, there was continued pricing momentum and good growth in market shares, leading to solid revenue growth. We remain on track for the year."