The global tobacco sector further enhanced its reputation as a safe haven for investors yesterday after British American Tobacco, the world’s second-largest publicly listed cigarette company, delivered a 20 per cent jump in annual pre-tax profits and raised its dividend payment by more than a quarter.

For the year to December 31, sales volume rose a modest 1 per cent on an organic basis. But revenue grew by more than a fifth to £12.1bn (€13.5bn) thanks to price increases and currency gains from the weak pound.

Pre-tax profit rose from £3.1bn to £3.7bn, while the full-year dividend increased from 66.2p to 83.7p via a 26p final payout.

The figures, which even the most ardent non-smoker will find tough to ignore, suggest that despite the spate of bad news in recent weeks from the likes of Unilever and Kraft, food companies that are normally seen as ultra-safe, not all defensive stocks have run out of steam.