For the three months to March 31, pre-tax profit dropped to £454m from £468m. Turnover climbed to £7.8bn from £5.9bn.
BAT said its global drive brands, Kent, Pall Mall, Lucky Strike and Dunhill were up 3%.
The company said its plan to merge its US tobacco-making arm Brown & Williamson with rival RJ Reynolds remains on track and should be completed around the middle of the year.
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