News Release

Preliminary announcement - year ended 31 December 2012

28 February 2013


Key financials
  2012 2011 Change
Revenue at constant currency £15,999m  £15,399m +4%
Adjusted profit at constant currency £5,970m £5,519m +8%
Profit from operations £5,412m £4,721m +15%
Adjusted diluted earnings per share 207.5p 194.6p +7%
Basic earnings per share 198.1p 157.1p +26%
Dividends per share 134.9p 126.5p +7%
The non-GAAP measures, including adjusting items and constant currencies, are set out on page 18 of the full announcement.

Full year highlights
  • Revenue at constant rates of exchange grew by 4% with continued good pricing momentum.

  • Reported revenue was down 1% due to adverse currency movements.

  • Adjusted profit from operations at constant rates of exchange increased by 8%.

  • Reported profit from operations increased by 15%.

  • All four regions grew operating margin, contributing to the excellent growth of 160 basis points at Group level, to 37.4%.

  • Group volumes were 694 billion, down 1.6%, mainly due to industry contractions in some of our larger markets.

  • The four Global Drive Brands grew volume by 3%. Dunhill volumes were up 2%, Kent was up 1%, Lucky Strike grew 11%, and Pall Mall 3%.

  • Adjusted diluted earnings per share rose by 7% and at constant rates, adjusted diluted earnings per share would have been up by 12%, principally as a result of the growth in profit from operations.

  • Basic earnings per share were up 26% at 198.1p (2011: 157.1p).

  • Recommended final dividend of 92.7p, taking the total dividend in respect of 2012 to 134.9p, an increase of 7%.

  • Free cash flow was 81% of adjusted earnings.

  • 38.9 million shares were bought back at a cost of £1.25 billion, excluding transaction costs. The Board agreed a £1.5 billion share buy-back programme for 2013.

  • New Management Board appointees announced. Des Naughton, currently Group Operations Director, appointed as Managing Director Next Generation Product, and Alan Davy to take over as Group Operations Director, effective 1 March 2013.
Richard Burrows, Chairman, commenting on the year ended 31 December 2012

“BAT delivered strong profit growth in 2012, achieved through good pricing and an outstanding improvement in operating margin, partially offset by adverse exchange rate movements. Despite the difficult trading conditions in many parts of the world, particularly southern Europe, these results demonstrate the Company is in excellent shape and we remain confident that our strategy will continue to deliver superior shareholder returns.” 

Preliminary results for the year ended 31 December 2012 - full announcement (483 kb)  


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