BAT markets more cigarettes in 2017 led by Rothmans' brand demand

Published on March 1st, 2017 00:00

Regardless of government attempts to control smoking, British American Tobacco (BAT) elevated the amount of cigarettes it marketed in 2016 a bit to 665-billion.

Even though only 0.2% more than in 2015, BAT said it reached this while the entire cigarette market experienced a 3% drop in amounts.

BAT Cigarette Brands

BAT shareholders will get a final results of 118.1p, taking the total for 2016 to 169.4p, a 10% boost from the previous year.

But shareholders seemed to argue with chairperson Richard Burrows’s opinion that “the group delivered exceptional earnings, volume and market share growth”, by sending its share price down 1.6% to R801, after the results were released on Thursday morning.

The company’s total income grew 12.6% to £14.75bn and operating profit 2.2% to £4.66bn.

In Australia - the country at the lead of making tobacco firms to offer their products in plain packaging - BAT said its “market share returned to growth, driven by Rothmans”.

Rothmans is apparently the firm’s best-performing brand, growing volumes sold by 36.9% and market share 70 basis points. The outcome said this was pushed by sales in Russia, Ukraine, Italy, Nigeria, Turkey and South Korea.

Dunhill’s total market share was firm. Volume dropped 3.3%, driven primarily by industry reductions in Malaysia and Brazil, more than offsetting growth in South Korea, Romania and the continued growth in Indonesia.

Kent volume elevated 1%, with market share up 10 basis points, motivated by Chile, Turkey and Japan.

Lucky Strike increased market share, higher by 10 basis points, and volume, up 13.5%, with growth in Indonesia, Colombia, Egypt, France, Germany and Croatia, more than offsetting lower volume in Argentina and Russia.

Pall Mall market share increased 10 basis points, with volume slightly higher than in the prior year as growth in Venezuela, Poland, Mexico and Romania more than offset declines in Pakistan and the migration to Rothmans in Italy.