British American Tobacco (BAT) global drive brands volume rose 5.8 per cent last year, driven by Dunhill, Rothmans and Pall Mall, but adverse foreign exchange rates cut into sales and profit, the company said.
Profit from operations fell 17.7 per cent to GBP 4.55 billion (EUR 6.21 billion), a decline that would have been 7.1 per cent at constant rates of exchange, BAT said. Revenue fell 8.4 per cent to just below GBP 14 billion.
Global brands performance lent support to slumping cigarette volume, which at 667 billion sticks for the year was nine billion units below 2013; a 1.4 per cent decline. BAT noted the contraction in company volume was smaller than an estimated 2.5 per cent decline for the industry. Declines in Russia and Brazil partially were offset by higher volume in Bangladesh, Iran, Venezuela and Turkey. Non-cigarette volumes were steady. Total tobacco volume was 694 billion stick equivalents.
“We are meeting consumer needs with differentiated products, including innovations which now make up nearly 50 per cent of our global drive brand volume”, said Chief Executive Officer Nicandro Durante. A tobacco heating product should undergo testing by the end of 2015 for test marketing the following year, he said.