BAT’s third quarter cigarette volume increased

British American Tobacco’s cigarette volumes during the nine months to the end of September, at 487 billion, were down by 1.8 percent on those of the nine months to the end of September 2014.

According to an interim management statement posted on the company’s website, volumes were down in all of the company’s regions: by 1.3 percent to 148 billion in the Asia-Pacific region; by 5.1 percent to 91 billion in the Americas; by 0.7 percent to 81 billion in Western Europe; and by 0.8 percent to 167 billion in the EEMEA (Eastern Europe, Middle East and Africa).

Total tobacco volumes, incorporating OTPs calculated as stick-equivalents, were down by 2.0 percent to 505 billion.

BAT said that its 1.8 percent volume decline during the first nine months was a lower rate of decline than that for the overall market.

And it noted that its cigarette volume during the three months to the end of September had increased by 0.4 percent to 165 billion, with increases in its EEMEA (6.4 percent) and Western Europe (1.0 percent) regions more than offsetting decreases in its Asia Pacific (-2.7 percent) and Americas (-6.5 percent) regions.

BAT said that the volume of its five Global Drive Brands had increased by 7.2 percent during the nine months, with the third quarter higher by 9.5 percent.

‘Dunhill’s volume increased by 4.7 percent in the year to date, driven by a 20 bps increase in market share, with higher volume in Indonesia, Brazil, South Africa and Hungary partially offset by South Korea and Malaysia,’ it reported.

‘Kent’s market share was marginally higher, with volume up by 2.4 percent in the nine months as the performance in Iran, Turkey and Japan, more than offset lower volume in Russia.

‘Lucky Strike’s volume grew by 3.4 percent in the nine months, with increases in Belgium, France and Mexico more than offsetting decreases in Russia and Spain, and an increase in market share of 10 bps.

‘Pall Mall market share was higher by 10 bps, with the nine month volume marginally lower as growth in Poland, Mexico, Canada and Pakistan was offset by the effect of the brand migration to Rothmans in Italy.

‘Rothmans market share was higher by over 50 bps as volume grew by 43.2 percent in the year to date with strong performances in Russia, Turkey, Ukraine, Italy, Kazakhstan, Australia, Algeria and the UK.’

Group revenue for the nine months to the end of September, at constant rates of exchange, grew by 4.2 percent on that of the nine months to the end of September 2014, while group revenue at current exchange rates fell by 6.5 percent.

“The Group continues to perform very well, with a strong third quarter,” said chief executive, Nicandro Durante.

“Our excellent market share growth was driven by the exceptional performance of our Global Drive Brands whilst the increase in revenue, at constant rates of exchange, was due to strong pricing in the majority of our markets.

“Performance will moderate in the final quarter partly due to a strong comparator and the impact of the deterioration in exchange rates.

“There will be increased marketing investment and geographic expansion of next generation products in Q4; however I remain confident that we are on track to deliver another year of good earnings growth at constant rates of exchange.”