| Wed 27 Oct 2010, 8:00 | | BTI - British American Tobacco p.l.c. - Interim management statement for the |
|
BTI
BTI
BTI - British American Tobacco p.l.c. - Interim management statement for the
nine months ended 30 September 2010
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")
BRITISH AMERICAN TOBACCO p.l.c.
INTERIM MANAGEMENT STATEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2010
- Good growth in revenue for the nine months
- Volumes decreased by 1 per cent to 526 billion
- On track for another year of good earnings growth
SUMMARY OF PERFORMANCE
Trading update
British American Tobacco continued to perform well in the nine months to the end
of September 2010. The Group increased overall market share across its top 40
markets and Global Drive Brands continued to grow, although Group volumes were
lower.
Group revenue for the nine months grew well, driven by the favourable impact of
exchange rate movements, continued good pricing and the acquisition of PT
Bentoel Internasional Investama Tbk (Bentoel) in Indonesia in June 2009,
partially offset by disposals.
While the Group`s results continued to benefit from foreign exchange movements
in the first nine months, this is expected to diminish in the fourth quarter.
Group volumes from subsidiaries were 526 billion, down 1 per cent. Organic
volumes were 3 per cent lower than last year as a result of market size declines
and an increase in illicit trade in some markets. Volumes were also impacted by
the loss of sales in Pakistan after the floods.
The four Global Drive Brands continued their good performance and achieved
overall volume growth of 8 per cent, flattered by increased consumer purchases
in Japan ahead of a significant excise driven price increase. Dunhill was up 21
per cent mainly as a result of brand migrations in Brazil and South Africa, Kent
and Lucky Strike grew 2 per cent each and Pall Mall increased by 7 per cent.
Trading environment
This good performance was achieved in trading conditions which continued to be
challenging, with industry volumes markedly lower in a number of markets
including Romania, Turkey, Pakistan, Germany and South Africa. In some markets,
there was down-trading to illicit trade as a result of pressure on consumers`
disposable income, exacerbated by high excise increases. This particularly
affected the low price segment.
The Group continues to improve its operating margin by addressing the cost base
and, amongst other initiatives, has started the information and consultation
procedures to close the Lecce factory in Italy.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries is as follows:
9 months to Year to
30.09.10 30.09.09 31.12.09
bns bns bns
Asia-Pacific 141 134 185
Americas 110 111 151
Western Europe 90 98 130
Eastern Europe 93 95 131
Africa and Middle East 92 95 127
526 533 724
Comment
Paul Adams, Chief Executive, commented "The challenging economic conditions,
excise driven price increases and high unemployment have led to some softening
of our volumes. The recession`s impact on consumers is still with us and shows
no signs of abating. Despite this, we have increased market share in our
largest markets, grown the Global Drive Brands and achieved good growth in
revenue. We are on track for another year of good earnings growth."
CHANGES IN THE GROUP
On 7 April 2010, the Group announced that it had agreed to sell its Belgium
distribution business, Lyfra NV, to Landewyck Group S.a.r.l. The transaction
was completed on 25 June 2010.
On 17 June 2009, the Group acquired an 85 per cent stake in Indonesia`s fourth
largest cigarette maker PT Bentoel Internasional Investama Tbk (Bentoel). A
public tender offer for the remaining shares was completed by 26 August 2009,
resulting in the acquisition of a further 14 per cent share in the company,
bringing the total shareholding in the Bentoel Group to 99.7 per cent.
On 20 October 2009, it was announced that Bentoel and BAT Indonesia had decided
to enter into a merger plan whereby BAT Indonesia would merge into Bentoel. The
merger was completed under the Bentoel name and the company remains listed on
the Indonesian Stock Exchange.
FINANCIAL POSITION
The Group has sufficient financing and facilities available for the foreseeable
future and at 30 September 2010 its guaranteed revolving credit facility of
GBP1.75 billion was undrawn.
The changes in the financing arrangements since the beginning of the financial
year were:
The repayment in May 2010 of a maturing Euro525 million bond. The repayment was
financed from debt issued in November 2009.
On 25 June 2010, the terms of Euro470 million of the Euro1 billion bond maturing
in 2011 were modified by extending the maturity to 2020; at the same time the
Group issued an additional Euro130 million bond with a maturity of 2020. In
addition, Euro413 million of the Group`s Euro750 million bond maturing in 2012
was purchased and cancelled. At the same time the Group issued a new GBP275
million bond with a maturity of 2040.
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. Further, the Board is not aware of any material events, transactions
or change in the financial position of the Group which have occurred since 31
December 2009 up to and including 26 October 2010, being the latest practicable
date before the date of the publication of this Interim Management Statement.
On behalf of the Board
Nicola Snook
Secretary
26 October 2010
NOTES AND ADDITIONAL INFORMATION
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.
Disclaimers
This Interim Management Statement (IMS) relates to the nine months ended 30
September 2010 and contains information that covers the nine months and the
period since the third quarter end to 26 October 2010, being the latest
practicable date before the date of the publication of this IMS.
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 IMS 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.
Distribution of this Interim Management Statement (IMS)
The IMS 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 IMS 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, details of which
are given below.
FINANCIAL CALENDAR 2011
24 February Preliminary Statement
28 April Annual General Meeting and Interim Management Statement
27 July Half-Yearly Report
26 October Interim Management Statement
CORPORATE INFORMATION
Premium 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 (0)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
web-based enquiries: www.investorcentre.co.uk/contactus
Secondary listing
JSE (Share Code: BTI)
Shares are traded in electronic form only and transactions settled
electronically through Strate.
Computershare Investor Services (Pty) Ltd
PO Box 61051, Marshalltown 2107, South Africa
tel: 0861 100 925; +27 11 870 8222
email enquiries: web.queries@computershare.co.za
American Depositary Receipts (ADRs)
NYSE Amex Equities (Symbol: BTI; CUSIP Number: 110448107; ISIN: US1104481072)
Sponsored ADR programme; each ADR represents two ordinary shares of British
American Tobacco p.l.c.
Citibank Shareholder Services
PO Box 43077
Providence, Rhode Island 02940-3077, USA
tel: 1-888-985-2055 (toll-free) or +1 781 575 4555
email enquiries: Citibank@shareholders-online.com
website: www.citi.com/dr
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
email enquiries: bat@team365.co.uk or
Computershare Investor Services (Pty) Ltd 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
ENQUIRIES:
INVESTOR RELATIONS: PRESS OFFICE:
Ralph Edmondson/ +44 (0)20 7845 1180 Christina Dona/ +44 (0)20 7845
Maya Farhat +44 (0)20 7845 1977 Kate Matrunola/ 2888
Catherine Armstrong
27 October 2010
Sponsor: UBS South Africa (Pty) Ltd
Date: 27/10/2010 08:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
