BAT’s 1Q volume down by 1 percent

| April 30, 2014

British American Tobacco’s cigarette volume during the three months to the end of March, at 158 billion, was down by 1 percent on that of the first quarter of 2013, 160 billion.

Volumes increased from 48 billion to 50 billion in the company’s Asia Pacific region, but fell in its other regions: from 32 billion to 31 billion in its Americas region; from 54 billion to 53 billion in its Eastern Europe, Middle East and Africa region; and from 26 billion to 24 billion in its Western Europe region.

According to an interim management statement issued today, BAT’s five global drive brands recorded a volume increase of 6.3 percent, with their combined market share growing strongly in the group’s key markets. “Dunhill volume increased by 4.1 percent, with good growth in Indonesia and Brazil, partially offset by market decline in Malaysia,” the company said.

“Kent was 1.6 percent higher, driven by Japan and the Middle East, partially offset by market decline in Russia.

“Lucky Strike volume was down by 1 percent, with increases in Russia and Spain more than offset by decreases in Chile, Germany and Poland.

“Pall Mall was up by 6.9 percent as a result of growth in Pakistan, Chile, South Africa, Argentina and Mexico, partially offset by declines in Russia and Italy.

“Rothmans grew by 27.6 percent with strong performances in Russia, Italy and Ukraine, partially offset by decline in Egypt.”

Meanwhile, the company’s total tobacco volume, including the volume of other tobacco products calculated as cigarette stick equivalents, fell by 1.1 percent from 166 billion to 164 billion.

Fine-cut volume was down by 2.9 percent because of market declines in Western Europe, mainly Italy, Spain and France, partially offset by growth in Germany and Belgium.

But Pall Mall and Lucky Strike fine-cut volumes were said to have grown.

Group revenue for the three months to the end of March, at constant rates of exchange, grew by 2 percent on that of the three months to the end of March 2013, reflecting lower volume and the timing of price increases.

At current exchange rates, revenue declined by 12 percent, as movements in the majority of the group’s key trading currencies adversely impacted reported revenue.

“This is a good underlying performance, underpinned by an improving trend in volume,” said Nicandro Durante, chief executive.

“We have grown revenue at constant rates of exchange and our pricing remains on track.

“Our market share continued to grow, driven by the strength of our global drive brands.

“Although foreign exchange remains an issue for reported results, it is a good start to the year. I remain confident of delivering consistent growth in earnings in constant currency terms, which we will recognize with an increase in the dividend.”

Category: Breaking News

Comments are closed.

Sponsor Ad

Also in Tobacco Reporter

Buckling up

Buckling up

Manufacturers of belting solutions are successfully navigating the industry’s transition.

| October 1, 2017
The new endgame

The new endgame

Some strategies to phase out combustible cigarettes are more sensible than others.

| October 1, 2017
Smooth operator

Smooth operator

Advances in processes, materials and technologies are reducing requirements for spare parts.

| September 1, 2017
Riding high

Riding high

Aiger Engineering thrives as new products continue to disrupt the traditional tobacco business. 

| September 1, 2017
An opportunity for health

An opportunity for health

David Sweanor on the taxation of new ‘tobacco’ products.

| September 1, 2017
Outstanding innovations

Outstanding innovations

New filter technologies are helping cigarette manufacturers set their products apart.

| September 1, 2017
How low can you go?

How low can you go?

Scandinavia’s market for combustibles shrinks as consumers look for less-harmful alternatives.

| September 1, 2017

Sponsor Ad

Web exclusives

Farmers concerned

Farmers concerned

The ITGA worries about slumping demand for leaf tobacco and a lack of alternative crops

| November 2, 2017
Their fair share

Their fair share

Tobacco growers deserve better

| November 1, 2017
Lease on life

Lease on life

Industry leaders respond to the FDA’s new attitude toward vapor products.

| October 1, 2017
The Vype Dossier

The Vype Dossier

Proving the reduced-risk potential of an e-cigarette

| October 1, 2017
Creating momentum

Creating momentum

The VTA took the fight to legislators firsthand.

| September 2, 2017
Battery battle

Battery battle

Sub-par production materials and user error are the main causes for battery failure.

| September 1, 2017
A shot in the foot

A shot in the foot

Is it contradictory for a university to ban vaping but allow handguns?

| August 30, 2017

Sponsor Ad

From the leaf lands

Child-labor issue raised

Child-labor issue raised

Manufacturers that have been buying tobacco for many years have tried but failed to prevent the use of child labor on farms. Now, a member of the European Parliament has raised the issue.

| January 17, 2018
Quality issues in Malawi

Quality issues in Malawi

With what might be a ‘short’ tobacco crop and with concern about the quality of some of the tobacco being produced; it will be interesting to watch Malawi’s grower prices evolving.

| January 17, 2018
Looking to quit

Looking to quit

After four consecutive years of drought, some of the flue-cured tobacco growers operating in the traditional growing areas of Andhra Pradesh are ready to quit.

| January 16, 2018
Tobacco season delayed

Tobacco season delayed

The late onset of rains in Zimbabwe is expected to delay the opening of the flue-cured tobacco selling season, which could have a knock-on effect through the economy.

| January 12, 2018
Fire-cured under threat

Fire-cured under threat

A US Food and Drug Administration proposal to limit levels of nitrosamines in finished smokeless tobacco products could pose an existential threat to fire-cured production in the US.

| January 10, 2018
Local buying ‘encouraged’

Local buying ‘encouraged’

To import unmanufactured tobacco into Indonesia, companies are going to have to demonstrate that they are buying local tobacco.

| December 29, 2017

Sponsor Ad