BAT turnover falls despite higher cigarette prices
25 Oct 2012
Despite increase in prices to offset the effects of falling cigarette sales this year, British American Tobacco (BAT) has seen turnover fall in the last nine months.
According to the company, which makes the Lucky Strike, Dunhill, Kent and Pall Mall brands, tax hikes in Brazil and currency fluctuations were to blame for the 1 per cent fall in revenue in the year to date. BAT added declining sales in Japan had also been a big factor.
However, the FTSE 100 company's four main brands continued to do very well, with Lucky Strike volume sales rising 14 per cent on the same nine-month period last year.
According to chief executive Nicandro Durante economic recovery remained fragile this year and difficult trading conditions persisted in many parts of the world. He added, pricing though remained strong, and its gobal brands continued to perform well.
Shares in the world's second-largest tobacco firm stayed flat, with the company's results were largely along expected lines and reflecting a trend seen in much of the rest of the industry.
According to analysts, the decline was attributable to reduced industry volumes and a tough comparative period, and the company expected a better volume performance in the next quarter.
