Shares in British American Tobacco (LSE: BATS) (NYSE: BTI.US) were largely unmoved this morning, despite revealing positive revenue growth in its third-quarter update.
At constant rates of exchange, the tobacco company saw revenue growth of 3.5% in the nine months year to date; though, this came to a 0.7% increase at current rates, due to negative “movements in some of the Group’s key trading currencies”.
British American Tobacco’s key performer, Global Drive Brands, saw cigarette rise by 1.9% in the nine-month period, boosted by an enhanced market share in the top 40 markets.
However, cigarette volume from subsidiaries decreased by 3.2% to 501 billion, and total tobacco volume was down by 3% “as a result of industry volume declines, excise-driven trade inventory movements in Brazil and the leap year comparator”.
Chief executive Nicandro Durante commented:
“The Group continued its good performance against a backdrop of adverse exchange rate movements, lower industry volume and instability in some parts of the world. We have grown revenue and market share, our pricing momentum remains strong and our Global Drive Brands continue to perform well. During the period, the Group launched its first next generation product, Vype, and early signs are encouraging. We remain on track for a year of solid earnings growth.”
