UPDATE 2-British American Tobacco hit by strong pound, lower sales
* Q1 revenue down 5.8 pct
* Q1 cigarette volume down 3.6 pct
* Stock falls 2 pct (Adds share movement, analysts' comments)
By Aastha Agnihotri
April 29 (Reuters) - British American Tobacco Plc, the world's No. 2 cigarette maker, reported a drop in first-quarter revenue, hurt by a stronger pound and as more people cut back on smoking.
Tobacco companies are grappling with falling sales as people cut back on smoking due to higher taxes and growing health consciousness. In response, the companies have forayed into e-cigarettes and the industry has witnessed consolidation.
Shares in BAT, which makes Dunhill and Lucky Strike cigarettes, fell as much as 2.4 percent in early trading on Wednesday, and were among the top losers on the FTSE-100 index .
Revenue fell 5.8 percent for the three months ended March 31. Excluding the impact of currency, revenue rose 1.7 percent.
The pound gained almost 2 percent against the Bank of England's trade-weighted basket of currencies in the first quarter. Continuación...