July 31 2008 (Bloomberg) -- British American Tobacco Plc, Europe's largest cigarette maker, said second-quarter profit rose 11 percent after smokers in emerging markets from Russia to Malaysia switched to higher-priced Kent and Dunhill cigarettes.
Net income climbed to 650 million pounds ($1.3 billion), or 32.35 pence a share, from 584 million pounds, or 28.52 pence, a year earlier, the London-based company said today in a Regulatory News Service statement. That beat the 622 million- pound median estimate of 10 analysts surveyed by Bloomberg. Revenue gained 17 percent to 2.92 billion pounds.
First-half volume sales under its four main brands advanced 20 percent, said BAT, which generates about half its profit in emerging markets. The maker of Lucky Strike and Pall Mall cigarettes is looking to the likes of the ultra-slim Kent Nanotek, introduced last year, to drive demand along with the purchase of Turkey's Tekel, completed during the quarter, and other takeovers.
``We do not expect any signs of a slowdown from the emerging-market consumer,'' David Hayes, an analyst at Lehman Brothers in London with an ``underweight'' rating on BAT, said in a research report before the figures were released.
Kent forever!
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