BATs grows revenues, worries over packaging

LONDON (ShareCast) - There was little sign of the world kicking the smoking habit in results from British American Tobacco (BATS), which continues to achieve top-line growth. The cigarettes maker says total revenues for 2011 were £15,399m, up 3% on 2010's £14,883m Adjusted profits were £5,519m, a rise of 11% on the prior year while the firm has elected to boost dividend by 11% to 126.5p per share. Organic revenue growth (stripping out acquisitions) increased 7% on a constant currency basis. Among its main brands Dunhill volumes are described as being "slightly" higher, Kent was up 10%, Lucky Strike (Other OTC: LCKY.PK - news) 14% and Pall Mall grew by 11%. Free cash flow increased by 3% to £3,326 million, 86%of adjusted earnings. BATS saw volumes decline 0.4% during 2011, but says it increased market share. The company continues to be concerned about various proposals around the world to introduce so called "plain packaging", which BATS argues will play into the hands of criminal gangs which smuggle cigarettes. The group is split into four regions, three of them saw adjusted profits up on 2010. Asia Pacific (Chicago Options: ^RASPUSD - news) gained 11% to hit £1,480m, the Americas rose 4% to £1440m, Western Europe, enduring a difficult year, still gained 9% to £1204m. Eastern Europe, Middle East and Africa rose 17% to £1362m. The Chairman, Richard Burrows, commented: "2011 has been a very successful year for (our) company and we carry momentum in market share growth and margin improvement into 2012." Shares edged 0.19% lower to 3,127p in early trading on Thursday. Over the last 12 months BAT shares have risen 27%. BS