British American Tobacco said on 26 October 2006 that third-quarter profit edged higher after the company cut costs and boosted margins.

Net income for the three months through 30 September rose to 446 million pounds (€ 665.3 million) from 442 million pounds in the same period a year earlier, the company said in a statement. Sales for the period dipped 1.6 per cent to 2.44 billion pounds (€ 3.64 billion).
 Tobacco consumption has fallen in Europe as customers become more health conscious and governments such as in Britain and Ireland impose more restrictions on where people may smoke. That has led companies like BAT to seek new markets. "Volumes in the quarter were adversely affected by the timing of shipments in some major markets," chairman Jan du Plessis said.