“Volume and profit fell due to down-trading
and the growth in illicit trade”
BAT said in its
results regarding SA for the six months to end-June released on Thursday

“Benson & Hedges and Dunhill continued to grow market share
although this was more than offset by Peter Stuyvesant, with total market share

The group reported a 16% jump in revenue to £7.7bn, but aftertax profit
declined by 14% to £2.3bn.

BAT declared an interim dividend of 56.5p, 10% higher than the 51.3p paid in
the first half of 2016.

“The relative weakness of sterling led to a significant tailwind on our
reported results, with revenue 15.7% higher and profit from operations up 16.3%
at current rates of exchange,”
 CEO Nicandro Durante.

BAT completed its acquisition of the 57.8% of Reynolds it did not already own
on Tuesday.

“If the acquisition had occurred on January 1 2017, before accounting
for anticipated synergy and restructuring benefits, it is currently estimated
that group revenue would have been £12.6bn and group profit from operations
would have been £4bn for the six months to June 30.”

“This is after charging £26m for the amortisation of acquired
intangibles, an uplift to the fair value of inventory of £540m and £212m in
respect of integration and acquisition costs,”
 the results
statement said.

Source: Business Day