BATs sees growth in 2010, ups divi

28th Jul 2010 06:51

British American Tobacco upped its dividend by a better than forecast 19% and said it expect another year of good growth in both earnings and dividends.The tobacco firm upped the dividend from 27.9p last year to 33.2p at the interim stage. Broker Charles Stanley expected a rise to 33.1p.Pre-tax profit rose to £2,279m in the six months to 30 June, up from £2,123m in the first half of 2009. Revenue was up 8% to £7,298m, as a result of the continued good pricing momentum, volume from the acquisition of Bentoel made in June 2009 and the favourable impact of exchange rate movements. Revenue increased by 4% at constant rates of exchange.Group volumes were 348bn, in line with last year. Market share of the group's top 40 markets increased but on an organic basis, volumes were down 3%, mainly driven by market declines in Romania, Turkey, Japan and Pakistan.The four Global Drive Brands achieved overall volume growth of 6%. Dunhill was up 21%, Lucky Strike 1% and Pall Mall grew by 7%, while Kent volumes fell 4% due to industry declines in its main markets.Chairman Richard Burrows said: "These results show that British American Tobacco's business is in very good shape, with continued pricing momentum, increasing market share in key markets and improving organic volume trends." "While the comparisons with 2009 will become tougher in the second half, shareholders should see another year of good growth in both earnings and dividends."