FX a drag at British American Tobacco

Cigarettes and tobacco maker British American Tobacco (BAT) said it has made a 'good start to 2013' after managing to increase revenues in the first quarter despite a slip in volumes.

Cigarettes and tobacco maker British American Tobacco (BAT) said it has made a 'good start to 2013' after managing to increase revenues in the first quarter despite a slip in volumes.

Revenues grew by 5.0% at constant exchange rates in the three months to March 31st, which Chief Executive Nicandro Durante said was "good" amidst a backdrop of "fragile economic conditions persisting in many parts of the world".

At current exchange rates however, revenues were up by just 1.0%. Nevertheless, the firm said that if current exchange rates persist for the rest of the year, "the currency headwind that adversely impacted the quarter will reverse".

BAT said that its Global Drive Brands of Dunhill, Kent, Lucky Strike and Pall Mall have seen continued growth with cigarette volumes up 1.0% year-on-year as market share grew strongly in the company's top 40 markets.

However, group cigarette volumes fell 3.7% to 160bn as growth in many markets (including Bangladesh, Pakistan and Vietnam) was more than offset by lower volumes in Brazil due to trade inventory movements, the leap-year comparator and market declines in Southern Europe.

Tobacco products meanwhile performed well during the quarter, with Fine Cut tobacco seeing strong growth in Western Europe.

Durante said: "We have grown revenue, our pricing momentum remains strong and our Global Drive Brands continue to perform well. It is a good start and I remain confident of another year of earnings growth in line with our long-term strategic goals."

Recommended

Don’t try to time the bottom – start buying good companies now
Investment strategy

Don’t try to time the bottom – start buying good companies now

Markets are having a rough time, so you may be tempted to wait to try to call the bottom and pick up some bargains. But that would be a mistake, says …
1 Jul 2022
Share tips of the week – 1 July
Share tips

Share tips of the week – 1 July

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
1 Jul 2022
Bunzl: boring is good for business
Share tips

Bunzl: boring is good for business

Food-service distribution company Bunzl is not a terribly exciting business, but it looks cheap and could be a great investment, says Rupert Hargreave…
30 Jun 2022
Five dividend stocks to beat inflation
Share tips

Five dividend stocks to beat inflation

During periods of high inflation, dividend stocks tend to do better than the wider market. Here, Rupert Hargreaves pick five dividend stocks for incom…
30 Jun 2022

Most Popular

How to find the best dividend stocks
Income investing

How to find the best dividend stocks

Stocks that pay dividends tend to outperform the market over the long run - as well as providing an income. Here, Rupert Hargreaves explains the best …
28 Jun 2022
Gold has been incredibly boring to own – but that’s no bad thing right now
Gold

Gold has been incredibly boring to own – but that’s no bad thing right now

Stocks, bonds and cryptocurrencies have all seen big falls this year. But gold remains at its one-year average. It may be dull, but it’s doing what it…
29 Jun 2022
What the end of the 1970s bear market can teach today’s investors
Stockmarkets

What the end of the 1970s bear market can teach today’s investors

The 1970s saw the worst bear market Britain has ever seen, with stocks tumbling 70%. Things have changed a lot since then, says Max King. But there ar…
28 Jun 2022