BAT results – commentary

British American Tobacco have released their latest earnings. Here’s a comment from Joshua Raymond, Market Analyst at

“British American Tobacco announced a like for like growth in cigarette volume of 1.1% in an interim management update for its nine months to 31st March. The firm saw solid growth in volume sales across a number of important territories including Russia, Turkey and Indonesia which helped to offset lower volumes in Pakistan and Malaysia, which was impacted by higher excise led price increases.


The firm saw revenues grow by 7.5% at constant rates of exchange but once current exchange rates are shown, revenues drop to a mere growth of 1.5%, showing just how much the company has been effected by negative FX moves. The firm also warned that if FX moves continue as they have been, its profits would be impacted to the tune of 7% give how much it relies on such a broad geographical transactional flow.


All in all it seems a fairly solid report sales wise but given how competitive the industry is and its own fairly open ended disclaimer that profit margins would be hit by negative FX moves, there can also be an element of lingering concern here for the firms full year results.”





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