British American Tobacco : Preliminary announcement - year ended 31 December 2015

EXCELLENT PERFORMANCE DRIVEN BY MARKET SHARE GROWTH

Key financials

Full year highlights

• Group cigarette volume fell by 0.5% to 663 billion, an organic decline of 0.8% excluding the acquisition of TDR in Croatia, against an estimated industry decline of 2.3%. Total tobacco volume was 0.8% lower than the previous year.
• The Group's cigarette market share in its Key Markets continued to grow strongly, higher by over 40 basis points (bps), driven by our Global Drive Brands which grew volume by 8.5% and market share by 120 bps.
• Group revenue was up by 5.4% at constant rates of exchange. Reported revenue was down 6.2%, as a result of adverse exchange rate movements.
• Adjusted Group profit from operations increased by 4.0% at constant rates of exchange. Excluding the transactional effect of foreign exchange on raw materials and leaf this would have been an increase of around 10%. Adjusted Group profit from operations was down by 7.6% at current rates.
• Profit from operations, at current rates of exchange, was 0.2% higher at £4,557 million, impacted by adverse exchange movements, on a translational and transactional level.
• Without the adverse transactional impact of foreign exchange, operating margin would have improved by around 160 bps. However, at current rates it fell by 60 bps to 38.1%.
• Adjusted diluted earnings per share, at constant translational rates of exchange, were up by 10.1% despite the transactional headwinds from foreign exchange. At current rates, they were up 0.1% at 208.4p.
• Basic earnings per share were 38.2% higher at 230.9p (2014: 167.1p), benefiting from one off gains as a result of the acquisition of Lorillard Inc. by the Group's associate Reynolds American Inc. (RAI).
• The Group invested US$4.7 billion to maintain a 42% shareholding in the enlarged RAI, concluded the £1.7 billion acquisition of the shares not already owned by the Group in Souza Cruz S.A. and acquired TDR in Croatia for €550 million.
• The Group acquired the leading e-cigarette business in Poland (CHIC) and signed a vapour collaboration agreement with RAI.
• The Board has recommended a final dividend of 104.6p, to be paid on 5 May 2016. This will take the 2015 total dividend to 154.0p per share, an increase of 4%.

Richard Burrows, Chairman, commenting on the year ended 31 December 2015

'The Group had an excellent year in 2015, despite a challenging external environment. Led by growth across all of our Global Drive Brands, the Group delivered another year of very good revenue and profit growth at constant rates of exchange. Despite significant currency headwinds impacting reported results, the excellent underlying performance of the Group in 2015 and the increase in our total dividend for 2015 to 154.0p are testimony to the strength of the business, our strategy and our confidence in the future.'

Preliminary results for the year ended 31 December 2015 - full announcement (1,025 kb)

British American Tobacco plc issued this content on 25 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 25 February 2016 07:15:22 UTC

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