British American Tobacco (BAT) said the downward trend in shipments continued in the first three months of the year although the rate of decline adjusted for takeovers has slowed.

Volume adjusted for acquisitions fell 1.8 per cent in the three months to 31 March. Unadjusted volume dipped 2.4 per cent to 164 billion units, BAT said in a statement today.

First-quarter sales were “in line” with last year due to disposal of its Belgian distribution business, Lyfra, termination of the Gauloises contract in Germany and end of phone-card distribution in Brazil, BAT said.

Significant volume declines were recorded in Spain, Mexico, Australia and Vietnam, however BAT market share increased in all those markets, the company said. Shipments of Kent, Pall Mall, Dunhill and Lucky Strike, which BAT refers to as its four global drive brands, increased by 9 per cent. Kent volume rose 16 per cent while Lucky Strike was 4 per cent lower, BAT said.

“BAT has made a good start to the year and our rate of organic volume decline is slowing,” Chief Executive Officer Nicandro Durante said in the statement. (pi)