British American profits up despite lower volumes

24th Feb 2011 08:05

British American Tobacco, the maker of Lucky Strike cigarettes, squeezed out a higher profit in the 2010 as price increases and emerging market growth helped it offset sluggishness in some markets.Pre-tax profits rose to £4.39bn from £4.08bn the previous year on revenues that rose to £43.86bn from £40.7bn.Total volumes fell by 2%, but BATS grew market share in its top 40 markets. The company's four "Global Drive Brands", Lucky Strike, Dunhill, Pall Mall and Kent, achieved volume growth of 7%, though Kent was a straggler due to declines in its main markets.Revenues were boosted by the acquisition of PT Bentoel Investama in Indonesia."We have increased our competitiveness by growing our share in key markets and improving our cost base," chairman Richard Burrows said. "There will be further global economic challenges ahead but we can see strong opportunities for growth too."BATS also announced plans to buy back £750m in shares.