Interim Management Statement for the three months ended 31 March 2008

•  Strong revenue growth at both constant and current exchange rates   
•  Volumes from subsidiaries increased 7 per cent to 170 billion   
•  All four Global Drive Brands grew volume, with overall growth of 7 per cent
  
  

Trading update

British American Tobacco had a good start to 2009 and is continuing to build on the success achieved in 2008.

Group revenue for the three months grew strongly in constant currency terms, driven by the continued good pricing momentum and volume growth from the acquisitions made in the middle of last year (Skandinavisk Tobakskompagni (ST) and Tekel). All regions contributed to this good result. Revenue benefited further from the favourable impact of significant exchange rate movements which more than offset the adverse transactional impact of exchange rates on costs.

Group volumes from subsidiaries were 170 billion, up 7 per cent, mainly as a result of the acquisitions of ST and Tekel. Excluding the benefits of these acquisitions, volumes were in line with last year with premium volumes slightly ahead.

The four Global Drive Brands continued their strong performance and achieved overall volume growth of 7 per cent. Dunhill was up 8 per cent, Kent 3 per cent, Lucky Strike 4 per cent and Pall Mall grew by 11 per cent.

Cigarette volumes

The segmental analysis of the volumes of subsidiaries is as follows:

Trading environment

This performance was achieved against general trading conditions which became tougher during the quarter with lower industry volumes in a number of key markets and a deceleration of growth in the premium segment. In some markets, particularly in Central and Eastern Europe, there was down-trading to illicit trade as a result of excise increases.

Summary

Paul Adams, Chief Executive, commented "We have been encouraged by the good start to the year and the first quarter’s trading demonstrates the strength of British American Tobacco's business, despite the difficult economic conditions. The continuing growth from our Global Drive Brands, the balanced brand portfolio covering all price points, our leading market positions and our broad geographic spread give us confidence that we should deliver another year of good earnings growth." 

Interim Management Statement for the three months ended 31 March 2009 - full announcement (61 kb)