| Wed 6 May 2009, 7:48 | | BTI - British American Tobacco p.l.c. - Interim Management Statement For The |
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BTI
BTI
BTI - British American Tobacco p.l.c. - Interim Management Statement For The
Three Months Ended 31 March 2009
British American Tobacco p.l.c.
Incorporated in England and Wales
(Registration number: 03407696)
Short name: BATS
Share code: BTI
ISIN number: GB0002875804
("British American Tobacco p.l.c." or "the Company")
INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2009
- Strong revenue growth at both constant and current
exchange rates
- Volumes from subsidiaries increased 7 per cent to 170
billion
- All four Global Drive Brands grew volume, with overall
growth of 7 per cent
Trading update
British American Tobacco had a good start to 2009 and is continuing to build on
the success achieved in 2008.
Group revenue for the three months grew strongly in constant currency terms,
driven by the continued good pricing momentum and volume growth from the
acquisitions made in the middle of last year (Skandinavisk Tobakskompagni (ST)
and Tekel). All regions contributed to this good result. Revenue benefited
further from the favourable impact of significant exchange rate movements which
more than offset the adverse transactional impact of exchange rates on costs.
Group volumes from subsidiaries were 170 billion, up 7 per cent, mainly as a
result of the acquisitions of ST and Tekel. Excluding the benefits of these
acquisitions, volumes were in line with last year with premium volumes slightly
ahead.
The four Global Drive Brands continued their strong performance and achieved
overall volume growth of 7 per cent. Dunhill was up 8 per cent, Kent 3 per cent,
Lucky Strike 4 per cent and Pall Mall grew by 11 per cent.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries is as follows:
3 months to Year to
31.03.09 31.03.08 31.12.08
bns bns bns
Asia-Pacific 43.3 42.9 179.5
Americas 37.9 39.2 161.0
Western Europe 29.7 25.1 122.6
Eastern Europe 27.1 29.1 137.3
Africa and Middle 31.5 22.1 114.2
East
169.5 158.4 714.6
Trading environment
This performance was achieved against general trading conditions which became
tougher during the quarter with lower industry volumes in a number of key
markets and a deceleration of growth in the premium segment. In some markets,
particularly in Central and Eastern Europe, there was down-trading to illicit
trade as a result of excise increases.
Summary
Paul Adams, Chief Executive, commented "We have been encouraged by the good
start to the year and the first quarter`s trading demonstrates the strength of
British American Tobacco`s business, despite the difficult economic conditions.
The continuing growth from our Global Drive Brands, the balanced brand portfolio
covering all price points, our leading market positions and our broad geographic
spread give us confidence that we should deliver another year of good earnings
growth."
CHANGES IN THE GROUP
The acquisition of the cigarette and snus businesses of ST was subject to
regulatory approval which was received on the condition that the Group divest a
small number of local trademarks, primarily in Norway. The disposal of the
trademarks was dealt with in two packages, with the first package sold and
completed in February 2009, while in March 2009, contracts were exchanged in
respect of the second package. The total proceeds from the two packages were in
line with the estimated value of GBP182 million as reported in the 2008 Annual
Report.
NET DEBT/FINANCING
The Group remains confident in its ability to access successfully the debt
capital markets and reviews its options on an ongoing basis. The main change in
financing arrangements since the beginning of the financial year was the
repayment of the Euro900 million maturing debt at the end of February 2009,
financed from bonds issued during 2008 and from cash generated from operations.
The Group has sufficient financing and facilities available for the foreseeable
future and at 31 March 2009 its guaranteed revolving credit facility of GBP1.75
billion was undrawn.
FINANCIAL POSITION
There have been no material events, transactions or change in the financial
position of the Group since the year end, other than as outlined in this
statement.
On behalf of the Board
Nicola Snook
Secretary
5 May 2009
DISCLAIMERS
This announcement does not constitute an invitation to underwrite, subscribe
for, or otherwise acquire or dispose of any British American Tobacco p.l.c.
shares or other securities.
This announcement contains certain forward looking statements which are subject
to risk factors associated with, among other things, the economic and business
circumstances occurring from time to time in the countries and markets in which
the Group operates. It is believed that the expectations reflected in this
announcement are reasonable but they may be affected by a wide range of
variables which could cause actual results to differ materially from those
currently anticipated.
Past performance is no guide to future performance and persons needing advice
should consult an independent financial adviser.
Notes to editors
British American Tobacco is the world`s second largest quoted tobacco group by
global market share, with brands sold in more than 180 markets. We have four
Global Drive Brands - Dunhill, Kent, Lucky Strike and Pall Mall - and over 300
brands in our portfolio. We hold robust market positions in each of our regions
and have leadership positions in more than 50 markets.
FINANCIAL CALENDAR 2009
30 July Interim Results
28 October Interim Management Statement
REBASED REGIONAL STRUCTURE FOR THE INTERIM RESULTS 2008
The regional structure has been realigned from 1 January 2009, as explained in
the Annual Report. For reference, the rebased numbers for the six months to 30
June 2008 are as follows:
Adjusted
Profit Profit from
from
Revenue Operations Operations*
GBPm GBPm GBPm
Asia-Pacific 1,293 454 456
Americas 1,349 518 516
Western Europe 1,406 308 334
Eastern Europe 689 199 199
Africa and Middle East 720 245 252
5,457 1,724 1,757
*Excluding restructuring and integration costs and gains on disposal of
businesses and brands.
CORPORATE INFORMATION
Primary listing
London Stock Exchange (Share Code: BATS; ISIN: GB0002875804)
Computershare Investor Services PLC
The Pavilions, Bridgwater Road, Bristol BS99 6ZZ, UK
tel: 0800 408 0094; +44 870 889 3159
Share dealing tel: 0870 703 0084 (UK only)
Your account: www.computershare.com/uk/investor/bri
Share dealing: www.computershare.com/dealing/uk
Queries: web.queries@computershare.co.uk
Secondary listing
(since 28 October 2008) - JSE (Share Code: BTI)
Shares are traded in electronic form only and transactions
settled electronically through Strate.
Computershare Investor Services (Pty) Limited
PO Box 61051, Marshalltown 2107, South Africa
tel: 0861 100 950; +27 11 373 0017
Queries: web.queries@computershare.co.za
Publications
British American Tobacco Publications
Unit 80, London Industrial Park, Roding Road,
London E6 6LS, UK
tel: +44 (0)20 7511 7797; facsimile: +44 (0)20 7540 4326
e-mail: bat@team365.co.uk or
Computershare Investor Services (Pty) Limited in South Africa
using the contact details shown above.
British American Tobacco p.l.c.
Registered office
Globe House
4 Temple Place
London
WC2R 2PG
tel: +44 (0)20 7845 1000
British American Tobacco p.l.c.
Representative office in South Africa
34 Alexander Street
Stellenbosch
7600
South Africa
(PO Box 631, Cape Town 8000, South Africa)
tel: +27 (0)21 888 3722
This Interim Management Statement is released to the London Stock Exchange and
the JSE Limited. It may be viewed and downloaded from our website, www.bat.com
Copies of the Interim Management Statement may also be obtained during normal
business hours from: (1) the Company`s registered office; (2) the Company`s
representative office in South Africa; and (3) British American Tobacco
Publications, as above.
ENQUIRIES:
INVESTOR RELATIONS: PRESS OFFICE:
Ralph 020 7845 David 020 7845
Edmondson/ 1180 Betteridge/Catherine 2888
Rachael 020 7845 Armstrong/
Brierley 1519 Elif Boutlu
6 May 2009
Sponsor: UBS South Africa (Pty) Ltd
Date: 06/05/2009 07:48:01 Produced by the JSE SENS Department.
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