British American Tobacco, the world's second-biggest tobacco company, reported a less than expected fall in 2015 revenue, as it gained market share and saw a smaller decline in cigarette volumes.
Dragged down largely by the impact of currency movements on cost of raw materials and leaf, revenue fell 6.2% to £13.10 billion.
Analysts on average expected £12.95 billion, according to Thomson Reuters.
Excluding the impact of currency, the company behind Dunhill and Lucky Strike said revenue rose 5.4%, due to price increases.
Cigarette volume fell 0.8% organically, excluding the acquisition of TDR in Croatia, against an estimated industry decline of 2.3%, BAT said.
Volume, which measures the amount of tobacco sold, fell 0.8%.
The company said it was well placed to meet the challenges posed by a trading environment that was expected to be difficult, going forward.
This year may be significant for tobacco makers as a new set of regulations comes into effect in the European Union and Britain plans to introduce "plain packaging," which requires tobacco be sold in plain, drab packages.
The industry has challenged both measures in court, and decisions are expected in coming months.
Besides, the global tobacco industry is under pressure from a growing health-consciousness, weak consumer spending, higher taxes and competition from cheaper black-market smokes and e-cigarettes.
BAT proposed a final dividend for 2015 of 104.6 pence, resulting in a 4% increase in full-year dividend.
