28 Oct 2015
Stronger Q3 underlying performance dimmed by currency headwinds
BAT released its 9M trading update. Revenue grew organically ytd by +4.2% (consensus +3.1% and +6.8% in Q3) with price/mix at 6%. On reported figures, the revenue declined by 6.5% ytd (-5.9% in H1) due to currency headwinds. Cigarette volumes were down by -1.8% ytd (+0.4% in Q3 vs. consensus -1.6%). Global Drive brands' volume grew +9.5% in Q3 vs. +6% in Q2. BAT’s overall market share progressed by 40bp driven by Global Drive brands which increased market share by 100bp.