Wrap Text
Interim Management Statement for 9 months ended September 2012
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")
BRITISH AMERICAN TOBACCO p.l.c.
INTERIM MANAGEMENT STATEMENT FOR THE NINE MONTHS ENDED 30 SEPTEMBER 2012
• Good revenue growth of 4 per cent at constant rates of exchange
• Cigarette volumes from subsidiaries decreased by 1.2 per cent to 517 billion
• Global Drive Brand volumes grew by 3 per cent
Nicandro Durante, Chief Executive, commented: “Economic recovery remains fragile this year and
difficult trading conditions persist in many parts of the world. However, pricing remains strong, we are
growing underlying market share and our Global Drive Brands continue to perform well. The trading
performance of the Group is good and we are on track for another year of good earnings growth."
SUMMARY OF PERFORMANCE
Trading update
British American Tobacco continued to perform well in the nine months to the end of September 2012
with continued growth in underlying revenue and in the Global Drive Brands. Group volumes were down,
after a low Q3, mainly driven by reduced industry volumes and a strong comparator, although the effect
is expected to moderate by Q4. Underlying market share grew with strong performances in the majority
of our top 40 markets.
Group revenue for the nine months at constant currency grew 4 per cent, driven by continued good
pricing. Reported revenue was down 1 per cent, adversely impacted by exchange rate movements.
Organic revenue growth at constant currency was 3 per cent.
Group volumes from subsidiaries were 517 billion, down 1.2 per cent, while organic volumes were
1.8 per cent lower as a result of the industry volume decline and the benefit in the comparative period of
the one-off increase in sales volumes in Japan. Industry volume was down in Brazil as a result of a
significant excise increase which has led to a rise in illicit trade. The benefit to Group volumes from the
acquisition of Protabaco in Colombia and the higher sales in Bangladesh, Vietnam, Pakistan and the
GCC, was more than offset by decreases in Brazil, Japan, Italy, Turkey and Egypt.
The four Global Drive Brands continued their good performance and achieved overall volume growth of
3 per cent. Kent was slightly up, growing in Russia, Ukraine and Azerbaijan but almost offset by the
decline in Japan. Dunhill was 2 per cent higher than last year with good performances in the GCC, South
Africa, Romania and Indonesia, partially offset by the adverse impact of competitive pricing activity in
South Korea. Good performances in Pakistan, Russia, Romania and Canada, partially offset by lower
volumes in Chile, Spain and Italy, contributed to a 2 per cent increase in Pall Mall volumes. Lucky Strike
grew 14 per cent following good growth in Poland, Germany, France, South Korea, Argentina and Chile.
Other tobacco products performed very well and market share grew strongly. Volumes were up 8 per
cent to 10,739 tonnes of Fine Cut in Western Europe, mainly in Germany, France, Hungary, the
Netherlands, Spain and the United Kingdom. Pall Mall remains by far the largest Fine Cut brand in
Western Europe.
Trading environment
The environment continues to be challenging, with industry volumes under pressure. In this environment
the expansion of illicit trade remains a threat, driven by excise increases and pressure on consumers’
disposable income.
Cigarette volumes
The segmental analysis of the volumes of subsidiaries is as follows:
9 months to Year to
30.09.12 30.09.11 31.12.11
bns bns bns
Asia-Pacific 141 141 191
Americas 104 105 143
Western Europe 95 100 135
EEMEA 177 177 236
517 523 705
SHARE BUY-BACK PROGRAMME
The Group resumed an on-market share buy-back programme from the end of February 2012. During the
nine months to September 2012, 30 million shares were bought at a total cost of £978 million, excluding
transaction costs.
FINANCIAL POSITION
The Group has sufficient financing and facilities available for the foreseeable future.
The changes in the financing arrangements since the beginning of the financial year were the repayment
in June 2012 of a €337 million bond, a US$690 million syndicated term credit facility and Mexican Peso
2,469 million borrowings. In June 2012, the Group issued US$2 billion bonds and in July 2012, cancelled
a €450 million syndicated term credit facility.
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
30 September 2012 up to and including 23 October 2012, being the latest practicable date before the
date of the publication of this Interim Management Statement.
On behalf of the Board
Nicola Snook
Secretary
24 October 2012
NOTES AND ADDITIONAL INFORMATION
British American Tobacco is the world's second largest quoted tobacco group by global market share,
with brands sold in around 180 markets. We have four Global Drive Brands – Dunhill, Kent, Lucky
Strike and Pall Mall - and more than 200 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 nine months ended 30 September 2012 and
contains information that covers the nine months and the period since the third quarter end to
23 October 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 2013
28 February Preliminary Statement
25 April Annual General Meeting and Interim Management Statement
31 July Half-Yearly Report
23 October Interim Management Statement
CORPORATE INFORMATION
Premium listing
London Stock Exchange (Share Code: BATS; ISIN: GB0002875804)
Computershare Investor Services PLC
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tel: 0800 408 0094; +44 (0)870 889 3159
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Your account: www.computershare.com/uk/investor/bri
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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
Page 3
American Depositary Receipts (ADRs)
NYSE MKT (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 (0)20 7511 7797; facsimile: +44 (0)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 (0)20 7845 1000
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: +27 (0)21 888 3722
ENQUIRIES:
INVESTOR RELATIONS: PRESS OFFICE:
Mike Nightingale 020 7845 1180 Kate Matrunola/ 020 7845 2888
Rachael Brierley 020 7845 1519 Jem Maidment/
Maya Farhat 020 7845 1977 Will Hill
24 October 2012
Sponsor: UBS South Africa (Pty) Ltd
Page 4
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