British American Tobacco posts 18% profit rise
Wednesday, 07 May 2008 12:53
ritish American Tobacco reports 18 per cent first quarter profit rise
British American Tobacco (BAT) has reported an 18 per cent increase in first quarter profit to £807 million on price rises and favourable currency movements.
Reported group revenue increased by 14 per cent to £2.54 billion as a result of favourable exchange rates, price hikes and a better sales of premium products, the company said.
Earnings per share increased 17 per cent to 28.44p, from 24.31p last year.
Chairman Jan du Plessis said: "The year has clearly got off to a great start, with profit growth in all our regions."
Sales of our global drive brands grew by 23 per cent, with around one third of the rise coming from brand migrations.
Dunhill was up eight per cent, Lucky Strike up 16 per cent and both Kent and Pall Mall increased by some 30 per cent, BAT said.
However, excluding the benefit from the termination of a joint venture agreement the contribution from associate company Reynolds American was 11 per cent lower at £64 million.
Lowered volumes, including higher prices, wholesale inventory shifts and continuing weakness in the US economy, impacted sales at the business.
As for the company's acquisitions, "work is continuing" BAT said.
The company has received the approvals from Turkey's High Board of Privatisation and the Competition Authority for the acquisition of the cigarette assets of Tekel, while the ST acquisition remains subject to EU competition approval.