10 November 2009

Imperial Tobacco Group PLC Preliminary results for the twelve months ended 30 September 2009

Highlights

  2009 (1) Change 2008 (1)
  1. Results for 2009 include a full 12 months’ contribution from Altadis, whereas 2008 comparatives include the Altadis contribution since completion of the acquisition on 25 January 2008.

  2. Our 2008 cigarette volumes have been restated to include third party manufacturing and distribution arrangements in certain countries.

  3. Management believes that these non-GAAP measures provide a useful comparison of business performance and reflect the way in which the business is controlled. Definitions are included in the notes to the financial statements. Reconciliations between adjusted and reported measures are also included in the relevant notes.

  4. If approved by shareholders the dividend will be paid on 19 February 2010 to those shareholders on the register at the close of business on 22 January 2010.
Volumes      
Cigarettes (2) 322.2bn +10% 294.1bn
 
Financial highlights – adjusted basis (3)      
Adjusted profit from operations £2,933m +32% £2,230m
Adjusted profit before tax £2,233m +39% £1,607m
Adjusted earnings per share 161.8p +18% 136.9p
 
Financial highlights – unadjusted      
Revenue £26,517m +29% £20,528m
Profit from operations £2,337m +59% £1,471m
Profit before tax £945m +52% £621m
Basic earnings per share 65.5p +29% 50.6p
Diluted earnings per share 65.3p +30% 50.4p
Dividend per share (4) 73.0p +16% 63.1p
 
  • Key international cigarette brand volume growth: Davidoff +12%, Gauloises Blondes +1%*, JPS +11%
  • +5% Tobacco net revenue growth in H209 at constant currency
  • +7% adjusted profit from operations growth in H209 at constant currency, excluding synergies
  • euro 190m of cumulative Altadis integration synergies
  • £1bn of working capital savings
  • Cash conversion rate of 128%
  • Adjusted net debt down to £10.8bn

* Adjusted for shipment timings.

Summarising today’s announcement, Gareth Davis, Chief Executive, said:

“We delivered a strong operational and financial performance, improving sales and profits in mature and emerging markets whilst making excellent progress on integration and considerably strengthening our balance sheet.

“We have driven sales across our portfolio with growth in our key international cigarette brands Davidoff, Gauloises Blondes and JPS supported by good gains from our regional and local brands.

“In the second half of the year, the first period offering a true comparison since the Altadis acquisition, we delivered 5 per cent growth in tobacco net revenues and 7 per cent growth in adjusted profit from operations at constant currency and before synergy benefits.

“The swift and efficient integration of Altadis has accelerated the timing of cumulative synergies enabling us to deliver euro 190 million, euro 10 million ahead of our expectations and we remain firmly on track to achieve our overall synergy targets.

“We were able to reduce working capital in the business by £1 billion last year, enhancing our cash generation and enabling us to reduce our adjusted debt by £2 billion before the impact of foreign exchange. We further strengthened our financial position with a number of successful bond issues and have no refinancing requirements until July 2012.

“The external environment is challenging but our balanced portfolio and geographic reach, combined with our enhanced focus on sales excellence and effective cost and cash management, leaves us well placed to continue to reward our shareholders with sustainable growth.”

Notes to editors

Imperial Tobacco Group PLC is a multi-national tobacco company, with international strength in cigarettes and world leadership in fine cut tobacco, cigars, rolling papers and tubes. The Group has 56 manufacturing sites and around 38,000 employees.

Investor Contacts

Gerry Gallagher
Director of Investor Communications
+44(0)7813 917 339

John Nelson-Smith
Investor Relations Manager
+44 (0)791 939 1866

Nicola Tate
Investor Relations Manager
+44 (0)7967 467 082

Media Contacts

Alex Parsons
Head of Corporate Communications
+44 (0)7967 467 241

Simon Evans
Group Press Officer
+44 (0)7967 467 684

A live webcast of a presentation for analysts and investors will be available on www.imperial-tobacco.com from 9.00am (GMT). An archive of the webcast and the presentation script and slides will also be made available during the afternoon.

Interviews with Gareth Davis, Chief Executive, Alison Cooper, Chief Operating Officer and Bob Dyrbus, Finance Director, are available in video, audio and text formats on this website and www.cantos.com

High-resolution photographs are available to the media free of charge at:
www.newscast.co.uk +44 (0)20 8886 5895

Gareth Davis will host the following conference calls, at which there will be the opportunity for questions.

Newswires at 7:15am (GMT):

Dial in number:   +44 (0)20 7806 1950   (UK)
    +34 91 788 9937   (Spain)
    +33 (0)1 7099 4301   (France)
    +49 (0)69 5007 1306   (Germany)
Confirmation Code:   9173146    

A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7111 1244
Code: 9173146#

Media at 11:00am (GMT):

Dial in number:   +44 (0)20 7806 1950   (UK)
    +34 91 788 9937   (Spain)
    +33 (0)1 7099 4301   (France)
    +49 (0)69 5007 1306   (Germany)
Confirmation Code:   3974843    

A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7111 1244
Code: 3974843#

Download the full announcement in PDF (196K)