LONDON, (AFP) – British American Tobacco, the world’s second-biggest maker of cigarettes, said on Wednesday that first-quarter revenues fell, pushed down by currency effects.
Revenues sank 12 percent in the three months to the end of March, compared with the level in the same period a year eariler, the maker of the Dunhill, Kent, Lucky Strike and Pall Mall brands said in a trading update.
However, stripping out the impact of currency fluctuations, revenues grew by a modest two percent in the reporting period, aided by price hikes.
“At current exchange rates, revenue declined by 12 percent, as movements in the majority of the group’s key trading currencies adversely impacted reported revenue,” the group said in the statement.
The tobacco firm added that cigarette volumes fell by just one percent in the first quarter, as emerging markets helped offset “challenging” conditions in western Europe.
“This is a good underlying performance, underpinned by an improving trend in volume,” said chief executive Nicandro Durante.
He added: “Although foreign exchange remains an issue for reported results, it is a good start to the year.”
For in depth analysis of Cambodian Business, visit Capital Cambodia