At current exchange rates‚ revenue was up by 1%‚ as movements in some of the group's key trading currencies adversely impacted revenues‚ it said on Thursday (25 April).
Releasing its interim management statement‚ BAT said it performed well in the March quarter with continued growth in revenue and its global drive brands.
Market share grew strongly in the group's Top 40 markets‚ although volumes were lower than last year as a result of the adverse impact of excise-driven trade inventory movements in Brazil‚ the leap-year comparator and industry volume decline.
Cigarette volumes from subsidiaries decreased by 3.7% to 160bn‚ with growth in many markets‚ including Bangladesh‚ Pakistan and Vietnam‚ more than offset by lower volumes in Brazil‚ as a result of trade inventory movements‚ the leap year comparator and market declines in southern Europe.
There was a decrease of 3.4% for total tobacco volumes. However its global drive brand cigarette volumes grew by 1.0%
Nicandro Durante‚ chief executive‚ commented: "This is a good performance against a backdrop of fragile economic conditions persisting in many parts of the world.
"We have grown revenue‚ our pricing momentum remains strong and our global drive brands continue to perform well.
"It is a good start and I remain confident that we will achieve earnings growth in line with our long-term strategic goals," Durante said.
Dunhill volumes increased by 5%‚ with good growth in Indonesia‚ the Middle East and South Korea‚ partially offset by declines in Brazil. Kent was 7% lower‚ driven by market declines in Russia and Japan.
Lucky Strike volumes were down by 9%‚ with increases in Germany‚ Poland and Italy‚ more than offset by market declines in Spain and lower volumes in the Middle East.
Pall Mall was up by 9%‚ largely as a result of growth in Pakistan‚ Chile‚ Canada and Italy‚ partially offset by declines in Uzbekistan and Spain.
Other tobacco products performed well‚ with fine cut tobacco growing strongly‚ driven by a 9.5% increase in Western Europe.
Pall Mall‚ the biggest fine cut brand in Western Europe‚ was up by 21.2% with growth in Spain‚ France‚ Italy and Belgium.
The group said the pricing environment remains strong despite difficult trading conditions in many parts of the world‚ notably southern Europe.
If current exchange rates persist for the rest of the year‚ the currency problems will reversed later in the year BAT said.
The changes in the financing arrangements of the group since the beginning of the financial year were the issue in March of a new €650m bond with a maturity of 2025‚ and a new US$300m bond with a maturity of 2016.
These issues were in anticipation of the repayment of bonds that will expire later in 2013 and the beginning of 2014.
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