Emerging markets light up BAT sales
BAT said early signs of growth in emerging markets were slowing the rate of underlying sales decline at the group.
Reporting first-half results, Paul Adams, chief executive, said the second-quarter contraction in volumes was lower than that in the first quarter, and that “for the balance of the year, volume will not be down more than 2 per cent”.
While western markets for cigarettes have been shrinking due to greater health awareness and tighter regulation, in recent years the recession has depressed volumes in emerging markets, too.
But Mr Adams said BAT had benefited in the first half of the year by its presence in commodities-led economies, which are seeing early signs of growth. BAT’s top five markets are Brazil, South Africa, Canada, Australia and Russia.
