BAT profits rise on back of higher volumes, market share

Cigarette maker British American Tobacco lifted full year pre-tax profits to £6.2bn from £5.8bn as volumes and market share grew.

Revenue grew 12.6% to £14.75bn on the back of the collapse in the pound. In constant exchange rates, the rise was 6.9%.

BAT said its share in its key markets continued to grow strongly, with global volumes up 0.2% year-on-year to 665bn. On a like-for-like basis, cigarette volumes were down 0.8%, though this was ahead of the 3.0% decline in the overall market.

Shareholders will receive a final dividend of 118.10p making a total of 169.40p a share.

Inn January BAT agreed to buy the remaining 57.8% of Reynolds American that it does not own for $49bn.

"Strategically, this deal will create a truly global business with a world class portfolio of tobacco and next generation products which will be available across the most attractive markets in the world," BAT said.

"Financially, it will be earnings accretive with enhanced cash generation while maintaining a solid investment grade credit rating. We expect the transaction to close during the third quarter of 2017, subject to obtaining the relevant shareholder and regulatory approvals."