BAT: Higher Profits on Lower Volumes

British American Tobacco (BAT) reported its 2020 second-quarter results on July 31, with profits up 3.3 percent to £5.37 billion ($6.92 billion) and revenues up 1.1 percent to £12.27 billion.

BAT reported cigarette volume down 6.3 percent for the quarter, which it attributed to international travel restrictions, although a greater proportion of higher priced cigarette sales contributed to the higher revenue figure.

BAT highlighted its “new categories” revenue growth of 14.7 percent, which includes 9.1 percent growth for heat-not-burn tobacco products, 41 percent growth in vapor products and 67 percent growth in “modern oral” products.

BAT’s Kentucky BioProcessing division continues to work on a Covid-19 vaccine with its clinical trial awaiting approval from the U.S. Food and Drug Administration