British American Tobacco plc: Quarterly Report to 31 March 2007

British American Tobacco plc: Quarterly Report to 31 March 2007

May 03, 2007

    
    LONDON, May 3 /Xinhua-PRNewswire/ --


    SUMMARY

    THREE MONTHS               2007       2006             
Change
    RESULTS
 
    Revenue               GBP2,232m  GBP2,297m             
   -3%

    Profit from             GBP684m    GBP616m             
  +11%
    operations

    Adjusted diluted         24.31p     22.05p             
  +10%
    earnings per
    share


    -- The reported profit from operations was 11 per cent
higher at GBP684 million, or 6 per cent higher if
exceptional items are excluded. However, the results from
all the regions were adversely impacted by exchange. Profit
from operations, excluding exceptional items, would have
been 18 per cent higher at comparable rates of exchange,
with all regions contributing to this strong result except
for America-Pacific which was slightly lower than last
year.
    -- Group volumes from subsidiaries were 156 billion, a
decrease of 3 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. The Group saw share improvements across
many markets, particularly for its global drive brands. The
four global drive brands  achieved an overall volume growth
of 6 per cent. The reported Group revenue was 3 per cent
lower at GBP2,232 million but, at comparable rates of
exchange, would have increased by 6 per cent as a result of
more favourable pricing and better product mix.
    -- Adjusted diluted earnings per share rose by 10 per
cent, benefiting from the increase in profit from
operations, an improved contribution from associate
companies, lower net finance costs, a lower tax rate and
the impact of the share buy-back programme, partly offset
by a higher minorities charge. 
    -- The Chairman, Jan du Plessis, commented "We
have started the year with strong growth in both revenue
and operating profit at comparable rates of exchange, as a
result of improved pricing and cost savings. In addition,
the first quarter has been somewhat flattered by excellent
performances in Brazil and South Africa. Looking ahead, it
is worth remembering that earnings per share benefited from
a number of one-off factors in the second quarter of 2006.
For the year as a whole, adverse exchange rates are
expected to hold back our earnings per share growth."


    For more information, please contact:  

    Investors
    Ralph Edmondson/ Rachael Brierley, 
    Tel: [phone]

    Media
    David Betteridge/Kate Matrunola/ Catherine Armstrong
    Tel: [phone]