Published: July 31, 2020 at 2:23 a.m. ET
(FILES) This file photo taken on September 25, 2014 shows a packet of Camel cigaretes taken in Paris.
joel saget/Agence France-Presse/Getty Images
British American Tobacco said its first-half profit edged higher, as sales of higher-priced items and cost cuts offset a fall in volume.
British American Tobacco
said its profit from operations rose 3.3% to £5.37 billion, with revenue up 1.1% to £12.27 billion. Its adjusted EPS of 157.8 pence came in ahead of a FactSet-compiled analyst estimate of 156.54 pence on sales of £12.16 billion.
Volume fell 6.3%, which the company blamed on international travel restrictions, but a greater proportion of higher-priced cigarette sales helped sales to rise.
The company reiterated it expects revenue growth between 1% and 3% for the year at constant currencies — it had lowered that target in June — and mid-single figure adjusted EPS growth. The company said U.S. industry volumes will fall 2.5% instead of a previously estimated 4%, citing the continued resilience of consumer demand and higher trade stock levels being maintained as a result of COVID-19.