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BTI - British American Tobacco p.l.c - Interim management statement for the
three months ended 31 March 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")
28 April 2011
BRITISH AMERICAN TOBACCO p.l.c
INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2011
- Good organic revenue growth of 5 per cent at constant rates of exchange
- Volumes from subsidiaries decreased by 2.4 per cent to 164 billion,
organic volumes reduced by 1.8 per cent
- Global Drive Brands volume grew by 9 per cent
Nicandro Durante, Chief Executive, commented "British American Tobacco has
made a good start to the year and our rate of organic volume decline is
slowing. Our innovations are enabling us to take price increases and grow
share in our Top 40 markets."
SUMMARY OF PERFORMANCE
Trading update
British American Tobacco performed well in the three months to the end of
March, with good organic revenue growth.
Group organic revenue for the three months grew by 5 per cent in constant
currency terms reflecting a continued good pricing environment. Reported
revenue at both constant and current rates remained in line with last year
which is mainly attributable to the disposal of Lyfra, the cessation of the
Gauloises contract in Germany and the ending of the phone cards distribution
in Brazil, all in 2010.
Group volumes from subsidiaries were 164 billion, down 2.4 per cent from 168
billion in 2010, while organic volumes were 1.8 per cent lower. Industry
volume declined significantly in markets such as Spain, Mexico, Australia and
Vietnam. However, the Group grew market share in all these markets.
The four Global Drive Brands delivered a strong overall performance with
volume growth of 9 per cent and share growth in a number of key markets. Kent
was up by 16 per cent, driven by Russia, Japan, South Korea, Romania and
Ukraine. Pall Mall grew by 10 per cent as a result of volume growth in
Pakistan, Romania and Turkey whilst good performances in Brazil, Taiwan,
Russia and Romania contributed to a 6 per cent increase in Dunhill volumes.
Lucky Strike volumes were 4 per cent lower mainly driven by industry volume
declines in Spain.
Trading environment
This good performance was achieved in trading conditions which remain
challenging, with industry volumes markedly lower in a number of markets.
However, the Group`s innovation strategy resulted in market share growth
across all regions. There were higher than expected shipments to Japan, where
the environment remains highly uncertain following the devastating earthquake.
The Group continues to address its cost base and, amongst other initiatives,
is progressing the factory closure activities in Europe, as well as the
downsizing of manufacturing facilities in Australasia.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries is as follows:
3 months to Year to
31.03.11 31.03.10 31.12.10
bns bns bns
Asia-Pacific 44 45 188
Americas 36 38 149
Western Europe 30 31 136
EEMEA 54 54 235
164 168 708
CHANGES IN THE GROUP
On 7 April 2010, the Group announced that it had agreed to sell its Belgium
distribution business, Lyfra NV, to Landewyck Group S.a.r.l. The transaction
was completed on 25 June 2010.
SHARE BUY-BACK PROGRAMME
The Group resumed an on-market share buy-back programme from the beginning of
March 2011. During the period to 31 March 2011, 4.7 million shares were
bought at a cost of GBP111 million (31 March 2010: nil), giving an average
cost per share purchased of GBP23.91.
FINANCIAL POSITION
The Group has sufficient financing and facilities available for the
foreseeable future and at 31 March 2011 its central banking facility of GBP2
billion was undrawn. This facility also acts as a backstop for the Group`s
GBP1 billion euro commercial paper (ECP) programme of which GBP312 million was
outstanding on 31 March 2011.
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 since 31 December 2010 up to and including 27 April 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
27 April 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 three months ended 31
March 2011 and contains information that covers the first quarter and the
period since the quarter end to 27 April 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 2011
5 May Payment date of 2010 final dividend
27 July Half-Yearly Report
26 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 interim dividend for the year ending 31
December 2011 are currently scheduled as follows:
2011
Wednesday 27 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 -
25 July 2011).
Friday 12 August Last Day to Trade (JSE)
Monday 15 August to No transfers between the UK main register and
Friday 19 August the South African branch register; no shares may
be dematerialised or rematerialised.
Monday 15 August Ex-dividend date (JSE)
Wednesday 17 August Ex-dividend date (LSE)
Friday 19 August Record date (LSE and JSE)
Wednesday 28 September Payment date (sterling and rand)
Note:
Any changes to the dates set out above will be announced. The dates will be
restated in the Half-Yearly Report scheduled for Wednesday 27 July 2011.
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; +44 870 889 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
e-mail enquiries: web.queries@computershare.co.za
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: 1-888-985-2055 (toll-free) or +1 781 575 4555
e-mail 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 20 7511 7797; facsimile: +44 20 7540 4326
e-mail 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 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 21 888 3722
G C W Cunnington
Deputy Secretary
British American Tobacco p.l.c.
ENQUIRIES:
INVESTOR RELATIONS: PRESS OFFICE:
Ralph 020 7845 Christina Dona/ 020 7845 2888
Edmondson/ 1180 Kate Matrunola/
Maya Farhat 020 7845 Catherine Armstrong
1977
Sponsor: UBS South Africa (Pty) Ltd
28 April 2011
Date: 28/04/2011 08:00:03 Supplied by www.sharenet.co.za
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