BAT: Fewer light up

Cape Town - Cigarette giant British America Tobacco (BAT) reported a 1% drop in sales volumes but claimed "solid growth" at constant exchange rates for the first quarter of 2010.

An interim management statement released on Wednesday showed physical volumes dropped to 168 billion cigarettes from 170 billion in the corresponding quarter in 2009.

The statement noted "significant" industry volume declines in Brazil and Romania (although group market share grew) and in Ukraine and Japan (where market share was maintained).

BAT said the biggest impact on sales volumes was seen in the low-priced segment.

But BAT noted that its four 'Global Drive Brands' delivered a good performance, notching up volume growth of 6% and market share growth in a number of key markets.

The statement disclosed that Dunhill was up 24% (helped by the migration of Carlton to Dunhill in Brazil), while Lucky Strike grew by 8% and Pall Mall by 10%.

However, Kent volumes were 12% lower mainly driven by industry volume declines in Japan, Russia and Romania.

BAT said market share in its top 40 markets was in line with the start of 2009 and ahead of the group's fourth quarter share.

BAT, at the time of writing, was 2,3% lower on the JSE at R244.20.

- Fin24.com