BRITISH American Tobacco (BAT) reported an eight per cent rise in half-year profits yesterday only two weeks after announcing the closure of a cigarette factory in the UK.
Profits of £1.21bn before exceptional items were boosted by a six per cent rise in sales of its biggest brands.
The company is in consultation with workers in Southampton over the closure of its 92-year-old factory there within the next 18 to 24 months.
BAT closed its Darlington plant last year with the loss of 500 jobs. Some workers were transferred to Southampton on temporary contracts, which have since ended.
A restructuring at Southampton cost BAT £42m this year, and will see production transferred, probably to Poland, Romania and Switzerland.
Announcing results for the six months to June 30, chairman Jan du Plessis said BAT had an exceptional half year considering the challenging environment for global consumer goods companies.
An increase of £38m in European profits to £379m was achieved on the back of strong growth in Russia, France and Romania as well as price increases and cost reductions in Germany.
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