British American Tobacco grows revenues in face of currency and volumes drag

23rd Oct 2013 07:10

Revenues rose for British American Tobacco (BATS) in the first nine months of the year despite a drag from lower volumes and adverse currency rates.The FTSE 100 group saw cigarette volumes dwindle 3.2% to 501bn in the three quarters ending on September 30th as cigarette consumption declined worldwide, an improvement from the 3.4% decline in the first half-year. Total tobacco volume for the period was down 3.0%.During the period, BATS launched its first "next generation product", or e-cigarette, branded Vype. Chief Executive Nicandro Durante, who noted early signs for Vype were "encouraging", said the group remained on track for a year of "solid" earnings growth.Durante said: "The group continued its good performance against a backdrop of adverse exchange rate movements, lower industry volume and instability in some parts of the world." He added that the company had grown market share as revenue grew 0.7% in the nine month period, or 3.5% if currency rates were kept constant.A strong pricing environment has enabled revenues to rise despite volume decline.Asia Pacific was the only geography to show growth, rising 5.7% to 149bn, with Americas was down 6.7% to 97bn, Western Europe down 8.4% to 87bn and the Eastern Europe Middle East and Africa declining 5.1% to 168bn. OH