British American Tobacco (BAT) year to date reported revenue fell by 6.5 per cent at current exchange rates due to “significant movements” in key trading currencies, the company said in its interim management statement.

Excluding the currency impact, the company reported a 4.2 per cent growth in year to date reported revenue, with Chief Executive Nicandro Durante commenting that the Group performed well in the third-quarter and that he remains confident in delivering earnings growth at constant rates of exchange.
While Group volumes for the 9 months to 30 Sept were down by 1.8 per cent to 487 billion sticks , third-quarter shipments were up 0.4 per cent as the Group’s five Global Drive Brands recorded a 9.5 per cent volume growth in the three months to 30 Sept.
So far this year all of the Group’s five Global Drive Brands have seen volume increases bar Pall Mall. Dunhill volumes increased by 4.7 per cent, Kent by 2.4 per cent, Lucky Strike by 3.4 per cent, and Rothmans by 43.2 per cent. Volume increases helped to offset declines in Russia, South Korea, Spain, and Malaysia.
“The trading environment remains challenging due to the slower than expected recovery in the global economy, continued pressure on consumer disposable income worldwide and significant currency headwinds. If exchange rates stay the same for the remainder of the year the Group would have adverse transactional and translational foreign exchange rate impacts to operating profit of approximately 6 per cent and 12 per cent respectively,” the company said.