British American Tobacco, the world's second-biggest cigarette maker, posted a 3 per cent dip in underlying nine-month sales volumes as it said trading conditions had deteriorated.
The London-based group, which makes Kent, Dunhill, Lucky Strike and Pall Mall cigarettes, said today it had seen lower industry volumes in a number of markets including Japan, Russia, Brazil, Italy and South Africa.
Overall group volumes rose 2 per cent to 533 billion cigarettes in the January-September period, but the rise was mainly due to the acquisition of Turkey's Tekel and Denmark-based ST, completed in the middle of 2008.
"Our consumers are clearly finding the current economic conditions difficult, as unemployment continues to rise. This has led to a softening of our volumes, although I am encouraged by the growth in our global drive brands and the strong growth in revenue," said chief executive Paul Adams in a statement.
The group added that volumes for its four top brands grew 4 per cent, while it saw "strong revenue growth" at both constant and current exchange rates.
The fall in underlying volumes of 3 per cent came after a first-half decline of 2 per cent, while the world's largest cigarette maker and Marlboro-maker Philip Morris International Inc recently reported its third-quarter cigarette volumes fell 4 per cent.
Reuters