BATs 1Q Revenue +7.5%; On Track For Good Earnings Growth

By Saabira Chaudhuri

LONDON--British American Tobacco PLC Tuesday reported a 7.5% rise in first-quarter revenue on a constant rate of exchange, and said it is on track for another year of good earnings growth.

The maker of Lucky Strike, Dunhill and Kent cigarettes said sales rose 3.6% to 158 billion units, in line with that reported in 2015. Sales in Pakistan and Malaysia had been hit especially hard, BAT said, blaming significant excise-led price increases. However, the company said it had offset much of the decline in sales volume by raising prices across many of its biggest markets.

"While profit growth will be weighted to the second half of the year, partly due to the impact of foreign exchange on our cost base, I remain confident that we will deliver another year of good earnings growth at constant rates of exchange," Chief Executive Officer Nicandro Durante said.

BAT's trading update comes ahead of a decision expected over the next few weeks by London's High Court on the legality of plain packaging. Plain packaging legislation is due to be implemented in the U.K. starting next month, but major cigarette companies, including BAT, have filed suits with the court, alleging that plain packaging violates U.K. and European law.

Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com

(END) Dow Jones Newswires

April 26, 2016 03:00 ET (07:00 GMT)

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