British American Tobacco (BAT) reported a 13 per cent rise in nine-month earnings today.
London-based BAT, which makes Dunhill, Kent, Pall Mall and Lucky Strike cigarettes, posted adjusted diluted earnings per share of 75.0 pence for the first nine months of 2006, in line with analysts' forecasts of 73.6 to 76.8p.
The second-ranked tobacco company after Altria's Philip Morris said its nine-month underlying profit from operations rose 8 per cent to £1.96 billion, while its like-for-like volumes grew 1 per cent in the nine months after a 3 per cent rise in the first half and 2 per cent growth in 2005.
"Although exchange gains are expected to deteriorate further in the fourth quarter, the growth in volume, revenue and profit for the nine months show that British American Tobacco is on track for a good year," said Chairman Jan du Plessis.
BAT posted a 20 per cent rise in first-half earnings in July as it gained from a stronger dollar and South African rand against the pound, and deliveries made in Japan and South Africa ahead of cigarette price rises, but it warned that these effects would reverse later in the year.
The group added that volumes of its four top global cigarette brands rose 16 per cent in the nine months. BAT shares have outperformed the FTSE 100 index by 3 per cent so far this year.