TRADING UPDATE
BAT sales volumes stay ahead of slumping cigarette market
The company previously indicated it wants to double revenue from next-generation products
A first-half pre-close trading update from British American Tobacco (BAT) indicates that its volumes continue to outperform the declining cigarette market. On Tuesday, BAT predicted that full-year global tobacco industry volume would be down about 3.5%. However, the multinational tobacco company expected its market share to continue to grow strongly, driven by its global brands portfolio that comprises Kent, Pall Mall, Lucky Strike, Rothmans and Dunhill. BAT said its markets in the US, Pakistan, Bangladesh, Romania, Germany, Canada and Ukraine performed well, but noted conditions remained challenging in the Middle East, Russia, SA, Malaysia and France. In the US market, where BAT’s presence was bolstered by the takeover of Reynolds America in 2017, lower industry volume in the first quarter was expected to affect revenue in the first half. BAT said US market share would be stable. The benefit of the US tax reform would help to fund significantly increased investments in next-generat...
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