British American Tobacco Reports Lower Profit

Cigarettes

British American Tobacco, the manufacturer of Lucky Strike cigarettes, reported during six months from January to June lower revenue and profit.

The main causes of this are slight decline in volume and strong British pound.

British American Tobacco ranks number two among world’s tobacco companies. Its sales show the improved market share for such cigarette brands as Pall Mall, Rothmans and Dunhill and strong performance on the markets of Mexico and Indonesia.

Experts say that global tobacco market is going to drop 3% by the end of 2014 and the main causes for that are increasing health consciousness and economic weakness. Modern people get aware abaout the effects of smoking and try to quit. However, still more do not pay attention on doctor’s warnings and continue to buy cheap cigarettes and smoke.

Kingsley Wheaton., the chief of corporate and regulatory affairs, says that the comapny wants to improve their position in the tobacco industry.

The sales volume of the company dropped 0.4% during the first 6 months of the year. Generally, the indications of the current year are better than of the same period of time in 2013. Adjusted earnings dropped 9% to 2.7 billion pounds in the first half of 2014. At constant exchange rates, earnings increased 4% due to price increases.

Earnings per share were 101.8 pence. Revenue dropped 10% to 6.8 billion pounds. The revenue was affected by foreign exchange and weakening of many important global gurrences.

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