British American Tobacco has announced 4 percent growth in earnings at consistent rates of exchange in the nine months ended September 2012 regardless of lower company volumes.
The earnings growth was influenced by permanent good pricing.
According to the BAT, announced income decreased 1 percent‚ negatively affected by exchange rate actions and organic income growth at permanent currency was 3 percent.
British American Tobacco stated that the company volumes decreased‚ after a low Q3‚ mostly influenced decreased industry volumes and a strong comparator‚ even though the result is expected to moderate by Q4.
Company volumes from its subsidiaries were 517 billion‚ 1.2 percent lower‚ whilst organic volumes were down 1.8 percent as a result of the industry volume fall and the profit in the comparative period of the one-off increase in sales volumes in Japan.
Tobacco volume decreased in Brazil as a effect of a considerable excise boost which has resulted in a grow in illicit trade. The profit to the company’s volumes from the purchase of Protabaco in Colombia and good sales in Bangladesh‚ Vietnam‚ Pakistan‚ was more than offset by falls in Brazil‚ Japan‚ Italy‚ Turkey and Egypt.
Primary market share increased with strong performances in most of the company’s best 40 markets.
Chief Executive Nicandro Durante said that economic rehabilitation continues to be vulnerable this year and hard trading conditions remain a problem in many parts of the world.
“However‚ pricing stays strong‚ we are growing underlying market share and our Global Drive Brands still perform well. The trading performance of the compnay is fine and we are on course for another year of good revenue growth.”
BAT declared that the four Global Drive Brands persisted their good performance and reached overall volume growth of 3%. Kent slightly increased‚ growing in Russia‚ Ukraine and Azerbaijan. Dunhill was 2 per cent up than in 2011 with good performances in South Africa‚ Romania and Indonesia. Good performances in Pakistan‚ Russia‚ Romania and Canada were the reason for a 2% rise in Pall Mall volumes. Lucky Strike increased 14% following good growth in Poland‚ Germany‚ France‚ South Korea‚ Argentina and Chile.
BAT said that it continued an on-market share buy-back plan from the end of February 2012. During the nine months to September 2012‚ 30 million shares were purchased at a total cost of GBP978 million‚ not including transaction costs.