BAT's Volumes, Revenues and Profits Up

02/27/2009

Feb 26, 2009-Volume cigarette sales by British American Tobacco Group subsidiaries during 2008, at 715 billion, were increased by four per cent on those of the previous year, according to today's preliminary announcement of results to December 31. One per cent of the increase was put down to organic growth, the rest to two acquisitions. Volume sales of the Group's four Global Drive Brands were up by 16 per cent with around a quarter of that rise coming from brand migrations. 'The reported Group revenue increased by 21 per cent to ￡12,122 million as a result of improved pricing, a better product mix, the acquisitions of Tekel and Skandinavisk Tobakskompagni (ST) mid-year and favorable exchange rate movements,' the company said in a note posted on its website. 'Revenue would have increased by 11 per cent at constant rates of exchange. 'The reported Group profit from operations was 23 per cent higher at ￡3,572 million, or 24 per cent higher if adjusting items are excluded. Profit from operations, at constant rates of exchange and excluding adjusting items, would have been 14 per cent higher, with all regions contributing to this strong result… 'Adjusted diluted earnings per share rose by 19 per cent to 128.78p, principally as a result of the strong growth in profit from operations and favorable exchange movements. Basic earnings per share were 17 per cent higher at 123.28p (2007: 105.19p).' "Looking ahead, we remain alert to the possibilities of downtrading," commented chairman, Jan du Plessis. "However, our well balanced portfolio of brands covers all major price points, while our geographic diversity further mitigates the risks for shareholders. We are very much aware of the potential challenges but the inherent strength of our businesses, our brands and our people should make us more resilient than most." Enditem