British American Tobacco, the owner of the Pall Mall and Lucky Strike cigarette brands, has reported increased revenues and volumes but cautions that currency effects are affecting results.
In the first three months of 2012, organic revenues grew by 6% on a constant currency basis: "driven by volume growth, improving mix and continued good pricing". The trouble for BAT is that foreign exchange (FX) movements have made life rather difficult, with revenues up just 4% after taking account of current exchange rates.
Group volumes from subsidiaries were 166bn, up 1.3% including the acquisition of Colombian firm Protabaco in October 2011.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Organic volumes increased by 0.7% principally driven by growth in Brazil, the Gulf Cooperation Council, Denmark, Bangladesh and Vietnam. Italy and South Korea saw lower volumes which dented the figures somewhat.
Across the four main "global drive" brands, Kent was up 7%, Dunhill was flat, Lucky Strike gained 26%, while Pall Mall was 4% ahead of the same period of 2011.
BS
-
Starling Bank to scrap 3.25% interest rate from popular current account within daysStarling is to remove the generous 3.25% it pays on current accounts from next week – what does this mean for customers and should you move?
-
Top 20 UK areas where house prices have ballooned in last 25 yearsSome parts of the UK have seen house prices grow by 652% since the turn of the millennium
