Interim Management Statement

RNS Number : 0914C

British American Tobacco PLC

26 April 2012

 



26 APRIL 2012

BRITISH AMERICAN TOBACCO p.l.c. INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2012

•	Good revenue growth of 6 per cent at constant rates of exchange.
•	Revenue growth of 4 per cent at current rates of exchange.
•	Volumes from subsidiaries increased by 1.3 per cent to 166 billion, organic volumes increased by 0.7 per cent
•	Global Drive Brand volumes grew by 6 per cent

Nicandro Durante, Chief Executive, commented "We have grown volumes and Global Drive Brands and have achieved good growth in revenue, with continued pricing momentum, although currency headwinds have adversely affected results.  It is a strong start to another year of anticipated good earnings growth." 

SUMMARY OF PERFORMANCE

Trading update

British American Tobacco performed well in the three months to the end of March 2012 with increased total volumes, as well as continued growth in revenue and Global Drive Brands. Group volumes were higher than last year despite industry volume decline. There are encouraging signs that the overall industry volume decline is moderating.

Group revenue for the three months, on an organic basis and at constant rates of exchange, grew by 6 per cent, driven by volume growth, improving mix and continued good pricing.  At current exchange rates, organic revenue grew by 4%, as movements in some of the Group's trading currencies adversely impacted revenues.

Group volumes from subsidiaries were 166 billion, up 1.3 per cent including the acquisition of Protabaco in October 2011. Organic volumes increased by 0.7 per cent principally driven by growth in Brazil, GCC, Denmark, Bangladesh and Vietnam, partially offset by lower volumes in Italy and South Korea.

Innovations continued to drive the four Global Drive Brands' performance which led to a volume growth of 6 per cent.  Kent was up 7 per cent, driven by Russia, Japan, Middle East, Ukraine and Azerbaijan. Dunhill was in line with last year, mainly as growth in Brazil, GCC, Malaysia, South Africa and Romania was offset by a decline in South Korea. Lucky Strike was up 26 per cent following strong growth in Germany, Spain, Poland, France and Chile.  Pall Mall was up 4 per cent largely as a result of growth in Germany, Pakistan, Russia and Uzbekistan, partially offset by declines in Chile, Italy and Spain.

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Trading environment

Although there are indications that industry volume decline is moderating, the unsettled economic climate and currency headwinds continue to present a challenging trading environment.

Cigarette volumes

The segmental analysis of the volumes of subsidiaries was as follows:

	3 months to						Year to
	31.03.12			31.03.11			31.12.11
	bns			bns			bns
Asia-Pacific	45			44			191
Americas	37			36			143
Western Europe	29			30			135
EEMEA	55			54			236
		166			164			705

SHARE BUY-BACK PROGRAMME

The Group resumed an on-market share buy-back programme from the end of February 2012. During the three months to 31 March 2012, 5 million shares were bought at a total cost of £150 million excluding transaction costs.

FINANCIAL POSITION

The Group has sufficient financing and facilities available for the foreseeable future.

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 April 2012, being the latest practicable date before the date of the publication of this Interim Management Statement.

CHANGES TO BOARD COMMITTEES

In our Preliminary Announcement, we announced the resignation of Christine Morin-Postel as a member of the Audit Committee with effect from 21 February 2012 due to a personal conflict of interest. Since then, we have taken the opportunity to review the membership of all of our principal Board Committees, which subject to re-election of all Directors at the AGM, will all take effect immediately following the AGM on 26 April 2012:

Audit Committee: Ann Godbehere and Kieran Poynter have been appointed; and Sir Nicholas Scheele has resigned. CSR Committee: Christine Morin-Postel and Sir Nicholas Scheele have been appointed; and Ann Godbehere, Gerry Murphy and Kieran Poynter  have resigned. Remuneration Committee: Gerry Murphy has been appointed to succeed Anthony Ruys as Chairman; no changes in membership. Nominations Committee: no changes in membership.

On behalf of the Board

Nicola Snook

Secretary

25 April 2012

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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 three months ended 31 March 2012 and contains information that covers the first quarter and the period since the quarter end to 25 April 2012, 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

Thursday 3 May                         Payment date of 2011 final dividend

Wednesday 25 July                    Half-Yearly Report

Wednesday 24 October             Interim Management Statement

HALF-YEARLY REPORT AND INTERIM DIVIDEND

With particular reference to the Company's obligations in respect of the secondary listing of its ordinary shares on the JSE, the proposed dates in respect of the Half-Yearly Report and the interim dividend for the year ending 31 December 2012 are currently scheduled as follows:

2012
Wednesday 25 July		Half-Yearly Report (to include announcement of declaration of interim dividend: amount of dividend per share in both sterling and rand; applicable exchange rate and conversion date - 23 July 2012; plus additional applicable information as required in respect of South African dividend tax).
Wednesday 25 July to Friday 17 August		From the commencement of trading on Wednesday 25 July 2012 to Friday 17 August 2012, no removal requests in either direction between the UK main register and the South African branch register will be permitted.
Friday 10 August		Last Day to Trade or LDT (JSE) Page 3
Monday 13 August to Friday 17 August		No transfers between the UK main register and the South African branch register will be permitted; no shares may be dematerialised or rematerialised between these inclusive dates.
Monday 13 August		Ex-dividend date (JSE)
Wednesday 15 August		Ex-dividend date (LSE)
Friday 17 August		Record date (LSE and JSE)
Wednesday 26 September		Payment date (sterling and rand)

Note: Any changes to the dates set out above will be announced. This timetable will be included in the Half-Yearly Report scheduled for release on Wednesday 25 July 2012.

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: [phone]

Share dealing tel: [phone] (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: [phone]

e-mail enquiries: [e-mail]

American Depositary Receipts (ADRs)

NYSE Amex Equities (Symbol: BTI; CUSIP Number: 110448107)

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: [phone] (toll-free) or [phone]

e-mail enquiries: [e-mail]

website: www.citi.com/dr

Publications

British American Tobacco Publications

Unit 80, London Industrial Park, Roding Road, London E6 6LS, UK

tel: [phone]; facsimile: [phone]

e-mail enquiries: [e-mail] 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: [phone]

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British American Tobacco p.l.c. is a public limited company which is listed on the London Stock Exchange and the JSE Limited in South Africa. British American Tobacco p.l.c. is incorporated in England and Wales (No.3407696) and domiciled in the UK.

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: [phone]

ENQUIRIES:
INVESTOR RELATIONS:		PRESS OFFICE:
Mike Nightingale/ Rachael Brierley/ Maya Farhat	020 7845 1180 020 7845 1519 020 7845 1977	Kate Matrunola/ Catherine Armstrong	020 7845 2888

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