British American Tobacco -- Quarterly Report to 30 September 2006

British American Tobacco -- Quarterly Report to 30 September 2006

October 26, 2006

    LONDON, Oct. 26 /Xinhua-PRNewswire/ --  
    
                                 SUMMARY

    NINE MONTHS RESULTS             2006         2005      
  Change
	
    Revenue -- as reported        GBP7,251m    GBP6,884m   
   +5%

    Profit from operations - as   GBP1,944m    GBP1,901m   
   +2%
    Reported

    - like-for-like               GBP2,124m    GBP1,961m   
   +8%

    Adjusted diluted earnings per    75.00p       66.64p   
  +13%
    Share

    -- Reported Group profit from operations was 2 per cent
higher at GBP1,944  million. However, profit from operations
would have been 8 per cent higher, or 6 per cent at
comparable rates of exchange, if exceptional items and the
impact arising from the change in terms of trade following
the sale of Etinera are excluded, with all regions except
Europe contributing to this good growth. This like-for-like
information provides a better understanding of the
subsidiaries' trading results.
 
    -- Group volumes from subsidiaries increased by 1 per
cent to 509 billion on both a reported and like-for-like
basis, with impressive growth of 16 per cent from the four
global drive brands. The reported Group revenue at GBP7,251
million rose by 5 per cent or 3 per cent at comparable rates
of exchange. This volume and revenue growth was achieved
across a broad spread of markets.
 
    -- Adjusted earnings per share rose by 13 per cent as
the higher net finance costs and minority interests were
more than offset by the improvement in profit from
operations, the share of associates' post-tax results, a
lower tax rate and the benefit from the share buy-back
programme.
 
    -- The Chairman, Jan du Plessis, commented:
"Adjusted diluted earnings per share increased by 13
per cent, which is a very good result, reflecting strong
performances from both our subsidiaries and our associates.
Although exchange gains are expected to deteriorate further
in the fourth quarter, the growth in volume, revenue and
profit for the nine months shows that British American
Tobacco is on track for a good year."

    For more information, please contact:

    INVESTOR RELATIONS: 

     Ralph Edmondson
     Tel:  [phone]

     Rachael Brierley
     Tel:  [phone]

    PRESS OFFICE: 

     David Betteridge, Kate Matrunola, or Catherine
Armstrong 
     Tel:  [phone]

SOURCE  British American Tobacco