Alliance One International (AOI) leaf sales volume dropped nearly 17 per cent and it paid growers an average 2.1 per cent less per kilo in the three months to 30 Sept, the company said.

Global tobacco markets are in oversupply, the leaf merchant said. AOI sold 107.1 million kilos in the business quarter, a decline of 16.7 per cent from the comparable quarter last year. Average price per kilo was USD 4.60 (EUR 3.68).
Revenue fell 15.8 per cent to USD 598.8 million due to reduced volume. Adverse weather in some parts of Brazil, increasing global oversupply and deconsolidation of a Brazilian subsidiary contributed to lower sales, AOI said.
Operating income before taxes and other items was USD 8.4 million, an improvement of USD 45.6 million, the company said.