Kent Maker Cigarette Volumes Down by 2.9%
British American Tobacco’s cigarette volume throughout the first half of the year to the end of June declined by 2.9 % from that of the six months to the end of June 2014. The company calculated that the industry-wide volume drop in the course of this period constituted 3.5 % and that it had experienced a ‘considerable raise in market share’. Volume, at 52 billion, was steady in the company’s Western Europe region, but lower in some of its other regions: in its Asia Pacific region by about 1.0 %; in its EEMEA (Eastern Europe, the Middle East and Africa) region by approximately 4.5 %; and in its Americas region by around 4.8 % to 60 billion.
The company revealed that its worldwide key brands volume was elevated by 6.0 % and that their share had persisted to increase highly. Dunhill’s volume raised by 2.4 % with increase pushed mostly in Indonesia and Brazil, partially compensated by lower volumes in South Korea, Malaysia and Gulf Co-operation Council countries. Kent’s volume dropped by 0.9 % as good growth in Iran and Turkey was a lot more than compensated by market shrinkage in Russia, Ukraine and Romania.
Lucky Strike’s volume was amplified by 2.9 % driven by growing in Belgium, Mexico and France that compensated lesser volumes in Russia and Italy. Pall Mall’s volume progressed by 2.8 % with solid performances in Pakistan, Poland, Mexico and Canada more than compensating lower volumes in Italy, Russia and Australia. In addition, Rothmans’ volume increased by 36.6 %, with solid performances in Russia, Australia, Turkey, Kazakhstan, Italy and Ukraine.
The volume of some other international brands dropped by 6.1 % as growth in State Express 555 and Shuang Xi were more than compensated by volume diminishes in respect of Craven A, Peter Stuyvesant and Viceroy prompted by market declines in their strongholds. Main revenue per share increased by 52.6 %. While proclaiming the half-year final results, CEO, Nicandro Durante, explained that the business had executed well in spite of a solid volume comparator and the increased low price opposition in Australia. However, he added that negative foreign exchange rate actions had considerably affected the company’s final results. “Cigarette volume decreased by 2.9 % although the constant increase of GDB volume, greater by 6.0 %, reflects that our strategy proceeds to deliver,” he stated in part. “Main volume, excluding one-offs, dropped by about 2.5 %. This is in opposition to an industry decrease of about 3.5 % right after considerable excise driven price boosts in Russia, Australia and South Korea.