British American Tobacco (BAT) has reported their shares have dropped as annual sales have decreased due foreign exchange headwinds.
BAT makes Camel and Lucky Strike cigarettes has reported revenue fell £24.3bn by 2.3% in 2018, taking out the foreign currency effects revenue increased to £24.5bn by 25%.
The cigarette company reported a profit of £8.35bn in 2018 compared to £29.53bn the year before.
Shares for BAT were down 2.9% to 2,713.5p.
Nicandro Durante, outgoing chief executive said, “BAT performed well in 2018, exceeding our target of high single-figure adjusted constant currency EPS (earnings per share) growth, whilst continuing to invest in long-term sustainable returns.
Durante said the full-year effect of the Reynolds American acquisition and foreign exchange headwind distorted the group’s results, but “on an adjusted, constant currency, representative basis, this was a strong performance across the business.”
Durante also acknowledged there is investor uncertainty over vape products and the proposed potential regulatory changes surrounding vaping.
However, Durante said that BAT has a “long experience of managing regulatory developments, a track record of delivering strong growth while investing for the future, and an established multi-category approach.
“Looking into 2019, we are confident of another year of high single-figure adjusted constant currency earnings growth and this confidence is reflected in our board’s proposal to increase the dividend by 4%.”