Preliminary announcement: year ended 31 December 2010

• Group revenue grew by 5 per cent to £14,883 million as a result of the continued good pricing momentum, the acquisition of PT Bentoel Investama Tbk made in June 2009 and the favourable impact of exchange rate movements. Organic Group revenue (see page 1) was up 3 per cent at constant rates of exchange.
•  The reported Group profit from operations was 5 per cent higher at £4,318 million. Adjusted profit from operations (see page 1) was 12 per cent higher and would have been up 6 per cent at constant rates of exchange.
•  Group volumes were 708 billion, down 2 per cent mainly due to industry declines. However, overall market share in the Group’s Top 40 markets increased.
•  The four Global Drive Brands achieved good overall volume growth of 7 per cent. Dunhill was up 18 per cent, Lucky Strike 2 per cent and Pall Mall grew by 8 per cent, while Kent volumes fell 1 per cent due to industry declines in its main markets.
•  Adjusted diluted earnings per share rose by 15 per cent, principally as a result of the growth in profit from operations and favourable exchange movements. Basic earnings per share were up 6 per cent at 145.2p (2009: 137.0p).
•  The Board is recommending a final dividend of 81.0p, payable on 5 May 2011. The total dividend in respect of 2010 is 114.2p, an increase of 15 per cent.
•  Free cash flow increased by 23 per cent to £3,240 million, 92 per cent of adjusted earnings.
•  Share buy-back of £750 million announced.
•  The Chairman, Richard Burrows, commented “British American Tobacco remains in very good shape at the end of 2010. We have increased our competitiveness by growing our share in key markets and improving our cost base. There will be further global economic challenges ahead but we can see strong opportunities for growth too. That’s why I am confident we can continue to deliver superior shareholder returns in 2011 and beyond.”

Preliminary results to 31 December 2010 - full announcement (390 kb)