British American Tobacco share price dips as revenue hit by weak currency rates
- Revenue down 9.6% despite sales increase of 2.4%
- BAT blamed foreign exchange rates and weak economy in western Europe
Pall Mall and Dunhill cigarette maker British American Tobacco blamed foreign exchange rates and the stuttering economic recovery in western Europe for a disappointing third-quarter update.
The world's second biggest cigarette firm said revenues fell 9.6 per cent in the nine months to September 30.
Once the impact of currency is removed, sales increased 2.4 per cent for the period boosted by price hikes and budget cigarettes.
Currency hit: BAT saw revenue fall despite an increase in sales
Chief executive Nicandro Durante said: 'The group continues to perform well and we are on track to deliver another year of good earnings growth at constant rates of exchange.'
Cigarette volume from subsidiaries was 495billion, down by 1 per cent with growth in markets including the Middle East, Bangladesh, Venezuela, Pakistan, Ukraine, Turkey and Indonesia.
These more than offset lower volume in Russia, Vietnam, Brazil, Poland and Canada. Tobacco volume was also 1 per cent lower. The shares fell 91.5p to 3375p.
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