British American Tobacco: Quarterly Report to 30 September 2007

2007-11-01 16:41 443

LONDON, Nov. 1 /Xinhua-PRNewswire/ --


NINE MONTHS RESULTS 2007 2006 Change

-- unaudited

Revenue GBP 7,312m GBP 7,251m +1%

Profit from operations GBP 2,304m GBP 1,944m +19%

Adjusted diluted

earnings per share 82.00p 75.00p +9%

-- The reported profit from operations was 19 per cent higher at

GBP2,304 million, or 8 per cent higher if exceptional items are

excluded. However, profit from operations, at comparable rates

of exchange and excluding exceptional items, would have been 14

per cent higher, with all regions contributing to this strong result.

-- Group volumes from subsidiaries were 504 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. In the third quarter,

volumes rose slightly over the comparable period last year. The four

global drive brands achieved an overall volume growth for the nine

months of 10 per cent, which led to share improvements in many

markets. The reported Group revenue increased by 1 per cent to

GBP7,312 million but, at comparable rates of exchange, would have

increased by 6 per cent as a result of more favourable pricing and

an improving product mix.

-- Adjusted diluted earnings per share rose by 9 per cent, principally

as a result of the strong operating profit performance, partly offset

by the adverse impact from foreign exchange movements. Basic earnings

per share were higher at 82.67p (2006: 70.11p).

-- The Chairman, Jan du Plessis, commented, "The Group's spread of

developed and developing markets has continued to serve shareholders

well, with all regions contributing to the strong results at

comparable rates of exchange. There were improvements in both

product mix and share in a broad range of key markets.

Although the momentum of the first six months has been maintained in the third quarter, we do still expect the growth in profit from operations at comparable rates of exchange to slow in the fourth quarter, as a result of generally higher marketing spend and the timing of price increases in Brazil."

For more information, please contact:

Investor Relations:

Press Office

Ralph Edmondson

Tel: +44-207-845-1180

Sharon Woodcock

Tel: +44-207-845-1519

David Betteridge, Kate Matrunola, or Catherine Armstrong

Tel: +44-207-845-2888

Source: British American Tobacco plc
Keywords: Food/Beverages