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University: Financial statement analysisBackground: British American tobacco (BAT) has been operating for more than 100 years since its start, British American Tobacco. 2008. It has traded through various moments of instability, change, nationalization, and controversy that surround smoking across the world. IN 1902 BAT was formed as a partnership business between the American tobacco company(AM) and the imperial tobacco company(ITC). Though it was formed from the amalgamation of the two companies, BAT was formed to operate outside both USA and UK. It thus grew in several other countries in Asia, Africa, America and Europe.

The diversification of BAT Company took place between the year 1962 and 1988, British American Tobacco. 2008. In 1962, the BATcompany acquired Mardon packaging international and Wiggins Teape limited. The success in the acquisition of the two companies paved a way for more acquisitions in the British American tobacco. Further acquisition helped the BATto advance from a large tobacco company to an even larger corporation. BATis an international company and it has its headquarters in London. It is the second largest tobacco company in the world taking a leading position in many countries.

Its products brands include Dunhill, Pall Mall and Kent among others. According to Imperial Tobacco, group PLC. 2010, Imperial Tobacco Company was started in 1901 through the amalgamation of various tobacco companies. Imperial Tobacco Company is an international tobacco company and it has its headquarters at Bristol in the United Kingdom. It is the fourth largest tobacco industry in the world. Since 1996, the company has invested a lot in the use of new technology in its factories. The efficient production base of the Imperial Tobacco Company has greatly enhanced its success in the international market.

Acquiring of businesses such as Rizla and the Netherlands tobacco business strengthened Imperial British Company and enhanced its capability of distributing products in a wide market, Imperial Tobacco, group PLC. 2010.To increase its market share, Imperial Tobacco Company continued with its expansion through acquisition. Belgian tobacco and German based manufacturer of tobacco products were also made part of Imperial tobacco. The purchase of Tobaccor, a cigarette manufacturer in sub-Saharan Africa led to the growth of Imperial Tobacco Company and its expansion into Asia continent.

The acquisition of Reemtsma cigarette from the German based tobacco company led to premeditated development of Imperial Tobacco and this strengthened its commitment to become an international tobacco company. Imperial tobacco is currently a firmly established international tobacco company with its products selling in over 160 countries across the world. The products brands of the Imperial Tobacco company include embassy, escort, prima and regal. Numerical analysis of the two companies over the last 3 yearsOver the last three years, BAThas shown good performance through increased profits and market share, British American Tobacco.

2008. The company’s income is higher than its expenditure by 3%. This was achieved through increase in the sell of products and company’s shares. Earnings per share have also increased by 10% and this shows that the company is able to meet its goal meeting increase in its profits. Another evidence for increased performance is the increase in the sell of the company’s global drive brands which increased by 10%.

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