(GREENSBORO) -- Lorillard, Inc. reported that its first quarter net income increased 7 percent. The Greensboro-based cigarette maker earned $248 million in the quarter. That is up from $232 million during the same period last year.

The growing profit comes as the company's net sales increased 12.9 percent to $1.535 billion. Lorillard credits the increase to higher unit sales volume and higher average prices. This was partially offset by higher sales promotion costs primarily driven by the introduction of Newport Non-Menthol.

"In the first quarter, Lorillard once again delivered industry leading financial results on virtually every measure that matters," said Murray S. Kessler, Chairman, President and Chief Executive Officer. "It's a testament to our flagship Newport brand which continues to organically grow volume and market share, despite challenging external conditions."

Lorillard repurchased 3.8 million shares during the quarter at a cost of $289 million.