uk bat.com - Quarterly report to 30 September 2008

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News Release

Quarterly report to 30 September 2008

Nine month results - unaudited

The reported Group revenue increased by 19 per cent to £8,704m as a result of favourable exchange rate movements, improved pricing, better product mix and the acquisitions of Tekel and Skandinavisk Tobakskompagni (ST) mid year.  Revenue would have increased by 9 per cent at constant rates of exchange.

The reported Group profit from operations was 18 per cent higher at £2,714 million, up 20 per cent if exceptional items are excluded, with all regions contributing to this strong result.  Profit from operations, excluding exceptional items, would have been 10 per cent higher at constant rates of exchange, with Latin America the only region lower.

Group volumes from subsidiaries were 524 billion, up 4 per cent, a combination of organic volume growth of over 1 per cent and the benefits from the two acquisitions.  The four Global Drive Brands continued their strong performance and achieved overall volume growth of 17 per cent with around a quarter of the rise coming from brand migrations.

Adjusted diluted earnings per share rose by 17 per cent, principally as a result of the strong growth in profit from operations and favourable exchange movements.  Basic earnings per share was 16 per cent higher at 95.49p (2007: 82.67p).

The Chairman, Jan du Plessis, commented “Although there is general concern about the prospects for the world economy and consumer behaviour over the next couple of years, these results demonstrate that there has been no discernable effect on British American Tobacco.  Moreover, the impact of any consumer downturn on our business should be mitigated by our balanced and innovative brand portfolio covering all consumer price points.  In addition, we continue to benefit from the extent of our geographic diversity, which will also help to protect shareholders from the impact of volatility in the foreign exchange markets.”

 Nine month report to 30 September 2008 - full announcement (112 kb)