British American Tobacco (BAT) reported improved profits and revenue in the six months to 30 June, even as cigarette volumes declined.
The weaker pound boosted revenue, as it jumped 15.7 per cent to £7.7bn. On a constant currency basis the increase was 3.5 per cent to £6.9bn.
Profit came in at £2.6bn, marking a 16.3 per cent rise.
Earlier this week the group confirmed that it had competed a takeover of Reynolds following approval from its shareholders, paying £41.7bn for the 57.8 per cent it did not already own.
Why it's interesting
Group cigarette volume was 314bn, down 5.6 per cent down against the prior year, as analysts expected. The group's five core brands - Lucky Strike, Kent, Pall Mall, Rothmans and Dunhill - were down 1.3 per cent.
This reflects a growing shift away from cigarettes in the global market, one which BAT has anticipated with its range of next-generation products.
The 'glo' device, which heats tobacco, has performed above expectations in several launch markets, the company said. BAT has also positioned itself as a leading e-cigarettes provider.
What the company said
Chairman Richard Burrows focused on the growth of next generation products as he commented on the results.
"The group is the largest vapour company in the world and the successful completion of the Reynolds acquisition bolsters our leading position in both NGPs and combustibles," he said. "We remain confident of delivering another year of good earnings growth at constant rates of exchange."