British American Tobacco (BAT) cigarette volume fell by 2 billion sticks to 178 billion in the three months ending 30 June, led by the decline in western Europe, the company said.
Through the first six months of the year, volume at 344 billion sticks and sales of GBP 7.45 billion (EUR 9.55 billion) were stable compared to the first half of 2011, BAT announced today. Without currency fluctuations unfavourable to the company, BAT said six-month sales would have increased 4 per cent.
Adjusted operating profit rose 3 per cent to GBP 2.84 billion. Adjustments include costs from factory closure and downsizing in Australia, restructuring in Argentina and severance plan for a factory closure in Germany. BAT also cited integration costs from the acquisition Productora Tabacalera de Colombia (Protabaco).
“The underlying business continues to perform well and we are confident of another year of good earnings growth,” said Chairman Richard Burrows. (ci)