BAT posts a profit of 23 per cent |
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Fri, 28 Oct 2005 00:35
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World’s second biggest cigarette maker, British American Tobacco (BAT), reported a 23 percent increase in nine-month earnings on Thursday. The like-for-like operating profit rose 9 percent to £1.96 billion from £1.8 billion last year.
The company also welcomed the Government’s decision not to completely ban smoking in pubs and clubs in England and Wales. "A total ban is unnecessary and out of tune with public opinion. People who smoke are taxpayers and voters who feel very strongly about social exclusion," BAT said.
The company with cigarette brands, such as Lucky Strike, Kent, Dunhill and Pall Mall, showed performed well in markets of Russia, Turkey, Pakistan and Bangladesh. It went through trying times in Canada and Japan. Expansion in countries such as Turkey and Pakistan has helped the company to post good results, the company release said.
The adjusted earnings per share rose to 67.91 pence in the nine months to end-September. Spokesman Michael Prideaux, BAT, said: “We're plainly performing above trend, but that doesn't create a new trend''. BAT shares have also risen by a third this year. They closed at 1,195 pence on Wednesday. This puts the value of the company at 25.2 billion pounds. Jan du Plessis, BAT’s chairman, said the company was on the course for "a highly satisfactory year".
In March this year, BAT's chief executive Paul Adams hiked the company's goal of cost savings to 320 million pounds a year by 2007. Since then the company has announced closing of some non-performing plants. BAT also managed to buy back 37 million shares worth 394 million pounds in the year's first nine months.
According to Adams, volumes could rise between 1.5 percent and 2 percent this year, which is more than the company's goal of 1 percent to 1.5 percent. He also expects revenue to rise by 3 per cent a year in the long term.
Brand-wise, Kent struck gold in Russia and Romania, while Pall Mall shone in Germany and Hungary.
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Cigarette production of BAT to move to East Asia, job cut panic 