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U.K. cigarette shipments weaken amid decline in smoking

British American Tobacco Plc, Europe's largest maker of cigarettes, reported a further decline in shipments as smokers cut back from Brazil to Vietnam.

The quantity of products sold fell 1 percent in the nine months ended Sept. 30, the London-based company said today in a statement. That compared with the median estimate of 10 analysts surveyed by Bloomberg News for a 0.9 percent drop.

Volume declined in Russia, Poland and Canada, the maker of the Pall Mall and Dunhill brands said, offsetting growth in markets such as the Middle East and Pakistan. Price increases meant sales rose 2.4 percent, excluding currency shifts, compared with the median prediction for 3.2 percent growth.

"The group continues to perform well and we are on track to deliver another year of good earnings growth at constant rates of exchange," Chief Executive Officer Nicandro Durante said in the statement.

BAT's four global "drive brands" -- Dunhill, Kent, Lucky Strike and Pall Mall -- increased volume by 6.2 percent after taking an increased share of their main markets.

BAT said in July that it plans to invest an additional $4.7 billion to maintain its 42 percent stake in Reynolds American Inc. after Reynolds completes its acquisition of Lorillard Inc., subject to approval by regulators.

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