British American Tobacco Plc: Preliminary Announcement - Year Ended 31 December 2007

28/02/2008 09:23

PR Newswire

LONDON, February 28 /PRNewswire/ --
Summary

2007 2006 Change

Revenue GBP10,018m GBP9,762m +3% Profit from operations GBP2,905m GBP2,622m +11% Adjusted diluted earnings 108.53p 98.12p +11% per share
Dividends per share 66.20p 55.90p +18%

The reported profit from operations was 11 per cent higher at GBP2,905 million, or 7 per cent higher if exceptional items are excluded. However, profit from operations, at comparable rates of exchange and excluding exceptional items, would have been 11 per cent higher, with all regions contributing to this strong result.

Group volumes from subsidiaries were 684 billion, a decrease of 1 per cent, mainly as a result of the high level of trade buying in some markets at the end of 2006, supply chain disruptions in the Middle East and the loss of StiX in Germany. The four Global Drive Brands achieved an overall volume growth of 10 per cent, which led to share improvements in many markets. The reported Group revenue increased by 3 per cent to GBP10,018 million but, at comparable rates of exchange, would have increased by 5 per cent as a result of more favourable pricing and an improving product mix.

Adjusted diluted earnings per share rose by 11 per cent, principally as a result of the strong growth in profit from operations, partly offset by the adverse impact from foreign exchange movements. Basic earnings per share were higher at 105.19p (2006: 92.08p).

The Board is recommending a final dividend of 47.60p, which will be paid on 7 May 2008. This, together with the interim dividend, will take dividends declared in respect of 2007 as a whole to 66.20p, an increase of 18 per cent.

The Chairman, Jan du Plessis, commented, "British American Tobacco has had another very good year, with increased profit and share growth in many markets. At a time of considerable economic and financial uncertainty around the world, the Group is in good shape. Over the past five years, we have delivered significant shareholder value with a total return of 294 per cent compared to 89 per cent for the FTSE 100 as a whole."

Enquiries
Investor Relations:

Ralph Edmondson
+44-207-845-1180

Sharon Woodcock
+44-207-845-1519

Press Office:

David Betteridge/Kate Matrunola/Catherine Armstrong
+44-207-845-2888

Enquiries: Investor Relations: Ralph Edmondson, +44-207-845-1180, Sharon Woodcock, +44-207-845-1519. Press Office: David Betteridge/Kate Matrunola/Catherine Armstrong, +44-207-845-2888