BAT volume growth slows

28th Oct 2009 07:01

Tobacco firm British American Tobacco said it performed well in the nine months to the end of September, although total volume growth has slowed.Revenue for the nine months grew strongly in constant currency terms, it added, driven by the continued good pricing momentum and volume growth from the acquisitions made in the middle of last year, as well as the acquisition of Bentoel in Indonesia in June 2009. BAT said all regions contributed to this good result, while revenue benefited further from the favourable impact of significant exchange rate movements.Group volumes from subsidiaries were 533bn, up 2%, as a result of the acquisitions of ST, Tekel and Bentoel. Organic volumes were 3% lower than last year as a result of a sharp decline in the low margin volumes acquired in the ST and Tekel transactions, which were included, on a comparable basis, for the first time in the third quarter.'Our consumers are clearly finding the current economic conditions difficult, as unemployment continues to rise,' said chief executive Paul Adams.'This has led to a softening of our volumes, although I am encouraged by the growth in our Global Drive Brands and the strong growth in revenue,' he added.