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BATS puffing but less than peers

Constant-currency sales rose for the tobacco giant, helped in part by better volumes than rivals
July 30, 2015

The weakness of the Russian rouble and Ukrainian hryvnia clouded reported figures from British American Tobacco (BATS). But strip out currency shifts and revenue rose 2.4 per cent to nearly £7bn, driving adjusted operating profit up 1.3 per cent to £2.7bn.

IC TIP: Hold at 3652p

As usual, the growth was all about higher prices. Chief executive Nicandro Durante reported that volumes were down 2.9 per cent to £322bn, but that was better than the industry decline of roughly 3.5 per cent. The market is shrinking, in part due to duty-related price increases in Russia, Australia and South Korea.

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