The world’s No. 2 tobacco company by sales boosted revenue slightly despite flat volumes and said the results were against tough year-on-year comparisons and were hit by adverse currency effects.
“Despite the global economic uncertainty and the adverse impact of exchange rates, British American Tobacco has delivered another good set of results,” Chairman Richard Burrows said.
London-based BAT said net profit in the six months to June 30 rose to 1.93 billion pounds ($3 billion) from GBP1.87 billion a year earlier, but missing market expectations of GBP1.97 billion.
Revenue inched up to GBP7.45 billion from GBP7.44 billion, missing market expectations of GBP7.61 billion.
Volumes for the half were flat. This compares with a rise of 1.3% in the first quarter and a drop of 1% in the same period last year.
It recommended an interim dividend of 42.2 pence a share, up 11% from 38.1 pence last year.
Analysts say BAT, which also competes with Philip Morris International Inc. PM -0.34% and Japan Tobacco Inc. , is a favored tobacco stock due to its high exposure to developing economies, where rising adult populations and incomes are driving purchases.
BAT shares closed Tuesday at 3308 pence, valuing the FTSE-100 company at GBP64.5 billion. BAT’s shares have risen 8.3% in the year to date.