Brands

British American Tobacco make 34 milion pounds profit in last thre month

British American Tobacco maker of Lucky Strike, Kent, Dunhill and Pall Mall cigarettes said net profit for the three months ended June 30 was 584 million pounds ($1.2 billion), up from 549 million pounds a year ago.


British American Tobacco PLC posted a 6 percent increase in second-quarter net profit on Thursday, but cautioned that growth in the second half of the year would slow on higher taxes and more investment in some key brands.
Revenue dipped to 2.49 billion pounds ($5.1 billion) from 2.51 billion pounds a year ago because of adverse currency effects.
Chairman Jan du Plessis said trading over the quarter was strong "despite the substantial impact of foreign exchange."
"However, there have recently been significant excise increases in a number of key markets, while the level of our investment in expanding distribution and rolling out our global drive brands is set to rise over the next few months," he added. "We therefore expect our growth in profit from operations at comparable rates of exchange to slow in the second half of the year."
BAT's director of corporate and regulatory affairs, Michael Prideaux, said the weak U.S. dollar in relation to the British pound knocked 115 million pounds ($236 million) off profit in the first six months of the year.
BAT generates around 40 percent of its profit in U.S. dollars, and Prideaux said that if exchange rates stayed at current levels, full-year profit would be reduced by a further 35 million pounds ($71.6 million).
The company is also facing a number of excise increases in the second half of the year, particularly a 30 percent tax rise in Brazil and a 25 percent hike in Malaysia.
Shares in the company dropped 2.8 percent to 1,597 pence ($32.79).