| Wed 26 Oct 2011, 8:27 | | 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
nine months ended 30 September 2011
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 NINE MONTHS ENDED 30 SEPTEMBER 2011
* Good organic revenue growth of 7 per cent at constant rates of
exchange
* Volumes from subsidiaries decreased by 0.6 per cent to 523 billion,
organic volumes reduced by 0.4 per cent
* Global Drive Brand volumes grew by 8 per cent
Nicandro Durante, Chief Executive, commented "While the challenging economic
conditions continued to impact consumers in some markets, other markets are
showing signs of recovery. Excise-driven price increases in a few markets will
continue to affect industry volumes. However, we have grown our Global Drive
Brands and achieved good growth in revenue and profit. We are on track for
another year of good earnings growth."
SUMMARY OF PERFORMANCE
Trading update
British American Tobacco performed well in the nine months to the end of
September 2011 with the Group increasing overall market share across its top 40
markets and with continued growth in the Global Drive Brands. Group volumes
were slightly lower than last year as a result of the industry volume decline,
although there are signs that this is moderating.
Group revenue for the nine months, on an organic basis and at constant rates of
exchange, grew by 7 per cent, driven by continued good pricing.
Group volumes from subsidiaries were 523 billion, down 0.6 per cent, while
organic volumes were 0.4 per cent lower. The benefit to Group volumes from
exceptional sales in Japan was offset by industry volume decline following the
significant excise-driven price increases in that market last year.
The four Global Drive Brands continued their good performance and achieved
overall volume growth of 8 per cent. Kent was up 9 per cent, growing in all of
its top ten markets, driven by Russia, Romania and Ukraine. Dunhill was only
slightly higher than last year with strong performances in many markets, such as
the GCC, Taiwan and Brazil, offset by the adverse impact of pricing activity in
South Korea. Good performances in Pakistan, Russia, Germany and Romania
contributed to a 12 per cent increase in Pall Mall volumes. Lucky Strike was up
9 per cent following good growth in Germany, France, Argentina and Chile.
The Group continues to improve its operating margin by addressing the cost base
through factory rationalisation, systems standardisation and productivity
savings.
Trading environment
The environment continues to be challenging due to the current economic climate
although there are some signs that the impact on volume is moderating. However,
the expansion of illicit trade remains a threat, driven by shock excise
increases and pressure on consumers` disposable income. In addition, a number
of currencies weakened against sterling during the quarter.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries were as follows:
9 months to Year to
30.09.11 30.09.10 31.12.10
bns bns bns
Asia-Pacific 141 141 188
Americas 105 110 149
Western Europe 100 101 136
EEMEA 177 174 235
523 526 708
CHANGES IN THE GROUP
On 26 May 2011, the Group announced that it had agreed to acquire 100 per cent
of privately owned Productora Tabacalera de Colombia, S.A.S. (Protabaco), the
second largest cigarette company in Colombia, for an enterprise value of US$452
million. The transaction was completed on 12 October 2011 and was financed from
internal resources.
SHARE BUY-BACK PROGRAMME
The Group resumed an on-market share buy-back programme from the beginning of
March 2011. During the nine months to 30 September 2011, 23 million shares were
bought at a total cost of GBP622 million.
SOUTH AFRICAN LISTING
The Board welcomes yesterday`s Medium Term Policy Statement that the South
African Government has agreed reforms that will allow inward-listed shares on
the JSE to be classified as domestic assets and be included in the JSE indices.
FINANCIAL POSITION
The Group has sufficient financing and facilities available for the foreseeable
future and at 30 September 2011 its guaranteed revolving credit facility of
GBP2.0 billion was undrawn.
The changes in the financing arrangements since the beginning of the financial
year were:
The repayment in June 2011 of a Euro530 million bond, financed from Group cash
balances.
In June 2011, the Group established an US$ commercial paper facility and
together with the euro commercial paper, GBP364 million of commercial paper was
outstanding at 30 September 2011. At 30 September 2010 and at 31 December 2010
the commercial paper programme was undrawn.
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 up to and
including 25 October 2011, being the latest practicable date before the date of
the publication of this Interim Management Statement.
On behalf of the Board
Nicola Snook
Secretary
25 October 2011
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 2011 and contains information that covers the nine months and the
period since the third quarter end to 25 October 2011, 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 2012
23 February Preliminary Statement
26 April Annual General Meeting and Interim Management Statement
25 July Half-Yearly Report
24 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 +44 (0)20 Kate Matrunola/ +44 (0)20
Edmondson/ 7845 1180 Catherine Armstrong 7845 2888
Mike +44 (0)20
Nightingale/ 7845 1206
Maya Farhat/ +44 (0)20
Rachael 7845 1977
Brierley +44 (0)20
7845 1519
26 October 2011
Sponsor: UBS South Africa (Pty) Ltd
Date: 26/10/2011 08:27:01 Produced by the JSE SENS Department.
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