PRESS RELEASE
26 FEBRUARY 2009
Preliminary announcement: year ended 31 December 2008
SUMMARY
| 2008 | 2007 restated |
Change | ||
|---|---|---|---|---|
| Revenue | £12,122m | £10,018m | +21% | |
| Profit from operations | £3,572m | £2,904m | +23% | |
| Basic earnings per share | 123.28p | 105.19p | +17% | |
| Adjusted diluted earnings per share | 128.78p | 108.53p | +19% | |
| Dividends per share | 83.70p | 66.20p | +26% |
|
- The reported Group revenue increased by 21 per cent to £12,122 million as a result of improved pricing, a better product mix, the acquisitions of Tekel and Skandinavisk Tobakskompagni (ST) mid-year and favourable exchange rate movements. Revenue would have increased by 11 per cent at constant rates of exchange.
- The reported Group profit from operations was 23 per cent higher at £3,572 million, or 24 per cent higher if adjusting items are excluded. Profit from operations, at constant rates of exchange and excluding adjusting items, would have been 14 per cent higher, with all regions contributing to this strong result.
- Group volumes from subsidiaries were 715 billion, up 4 per cent, a combination of organic volume growth of 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 16 per cent with around a quarter of the rise coming from brand migrations.
- Adjusted diluted earnings per share rose by 19 per cent to 128.78p, principally as a result of the strong growth in profit from operations and favourable exchange movements. Basic earnings per share were 17 per cent higher at 123.28p (2007: 105.19p).
- The Board is recommending a final dividend of 61.6p, which will be paid on 6 May 2009. This, together with the interim dividend, will take dividends in respect of 2008 as a whole to 83.70p, an increase of 26 per cent.
- The Chairman, Jan du Plessis, commented “Looking ahead, we remain alert to the possibilities of downtrading. However, our well balanced portfolio of brands covers all major price points, while our geographic diversity further mitigates the risks for shareholders. We are very much aware of the potential challenges but the inherent strength of our businesses, our brands and our people should make us more resilient than most.”
Enquiries
British American Tobacco Press Office
David Betteridge / Catherine Armstrong / Elif Boutlu
+44 (0) 20 7845 2888 (24 hours)
Investor Relations
Ralph Edmondson / Rachael Brierley
+44 (0) 20 7845 1180 / 1519
