British American Tobacco Profit Up

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British American Tobacco Profit Up
British American Tobacco,[link widoczny dla zalogowanych], the second-largest tobacconist in the world, and the leading tobacco company by revenue in Europe reported last week an increase in full-year profits mainly on sales growth, encouraged by growing sales in developing markets. The rise totaled 6.1 percent in the full year 2010,[link widoczny dla zalogowanych], as Bat sold more Kent and Dunhill cigarettes in Russia. However, the company said sale volumes decreased as some markets struggled with recession and fluctuations.
British American Tobacco increased prices to compensate for a decline in demand and higher taxes as governments tied up budgets and discouraged tobacco consumption. Japan approved a record tax hike last October, increasing the tax by 40 percent,[link widoczny dla zalogowanych], Turkey hiked its cigarette tax by 29 percent in the late 2009 and Australia approved a 25-percent tax increase in April. Therefore, the company increased prices by 5.8 percent in 2010,[link widoczny dla zalogowanych], according to MF Global analysts.
“We consider that pricing would remain solid in 2011”,[link widoczny dla zalogowanych], said MF Global Senior Analyst Andy Smith in a statement to investors.
Revenues went up by 4.8 percent to 14.88 billion pounds,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], the London-based tobacco company stated.