British American Tobacco's revenue down 12%

British American Tobacco (BAT) reported that at the current rates of exchange revenue for the first quarter of this year was down 12%. Revenue at constant rates of exchange grew by 2%.

BAT's Nicandro Durante says that he expects to make good profits this year amid continued volume growth across all cigarette brands. Image: BAT

The company said volume was down 1% to 158m cigarettes. It said it had built on the good share performance last year‚ with "strong share growth across the key markets" in the first quarter the year.

Chief Executive Nicandro Durante said: "This is a good underlying performance‚ underpinned by an improving trend in volume. We have grown revenue at constant rates of exchange and our pricing remains on track.

"Our market share continued to grow‚ driven by the strength of our global drive brands. Although foreign exchange remains an issue for reported results‚ it is a good start to the year. I remain confident of delivering consistent growth in earnings in constant currency terms‚ which we will recognise with an increase in the dividend," Durante said.

Cigarette volumes for the five global brands were up by 6.3%.

Dunhill volume increased by 4.1% and Kent was up 1.6%‚ while Lucky Strike volume was down 1.0%. Pall Mall was up 6.9% and Rothmans grew by 27.6%.