Interim Management Statement for the Three Months Ended 31 March
30 APRIL 2014
BRITISH AMERICAN TOBACCO p.l.c.
INTERIM MANAGEMENT STATEMENT FOR THE THREE MONTHS ENDED 31 MARCH 2014
ON TRACK FOR ANOTHER GOOD YEAR
Revenue grew by 2% at constant rates of exchange
Revenue declined by 12% at current rates of exchange
Cigarette volume from subsidiaries decreased by 1.0% to 158 billion, with a decrease of 1.1% for total
Global Drive Brand cigarette volume grew by 6.3%
Nicandro Durante, Chief Executive, commented: “This is a good underlying performance, underpinned by an
improving trend in volume. We have grown revenue at constant rates of exchange and our pricing remains on
track. Our market share continued to grow, driven by the strength of our Global Drive Brands. Although foreign
exchange remains an issue for reported results, it is a good start to the year. I remain confident of delivering
consistent growth in earnings in constant currency terms, which we will recognise with an increase in the
SUMMARY OF PERFORMANCE
British American Tobacco delivered an improved volume performance, down just 1% in the first three months
of the year, aided by the continued strong growth of the Global Drive Brands. The Group built on the good
share performance seen last year, with strong share growth across the key markets in the first quarter of 2014.
Group revenue for the three months, at constant rates of exchange, grew by 2%, reflecting lower volume and
the timing of price increases, compared to last year. At current exchange rates, revenue declined by 12%, as
movements in the majority of the Group’s key trading currencies adversely impacted reported revenue.
Cigarette volume from subsidiaries were 158 billion, down 1.0%, with growth in many markets, including
Bangladesh, Pakistan, Indonesia, Japan and the GCC, more than offset by trade inventory adjustments in
Denmark and lower volumes in Russia and Poland. Total tobacco volume was 1.1% lower.
The five Global Drive Brands’ cigarette volumes were up by 6.3%, with their combined market share growing
strongly in the Group’s key markets. Dunhill volume increased by 4.1%, with good growth in Indonesia and
Brazil, partially offset by market decline in Malaysia. Kent was 1.6% higher, driven by Japan and the Middle
East, partially offset by market decline in Russia. Lucky Strike volume was down by 1.0%, with increases in
Russia and Spain more than offset by decreases in Chile, Germany and Poland. Pall Mall was up by 6.9%, as a
result of growth in Pakistan, Chile, South Africa, Argentina and Mexico, partially offset by declines in Russia and
Italy. Rothmans grew by 27.6% with strong performances in Russia, Italy and Ukraine, partially offset by decline
Fine Cut was down 2.9%, driven by market declines in Western Europe, mainly Italy, Spain and France, partially
offset by growth in Germany and Belgium. Both Pall Mall and Lucky Strike Fine Cut grew volumes.Follow us:
Emerging market volumes are increasing, however, the trading environment in Western Europe remains
Compared to last year, the timing of price increases will be more weighted towards the second half of the year.
This, together with transactional exchange rate impacts which, at today’s rates, will moderate over the year,
means that results will be more skewed to the second half than in previous years.
The segmental analysis of the volume of subsidiaries was as follows:
3 months to
3 months to
bns bns bns
Asia-Pacific 50 48 197
Americas 31 32 134
Western Europe 24 26 119
EEMEA 53 54 226
158 160 676
Total Tobacco volume 164 166 703
SHARE BUY-BACK PROGRAMME
The Group resumed an on-market share buy-back programme from 28 February 2014. During the three months
to 31 March 2014, 5.4 million shares were bought at a cost of £175.0 million, excluding transaction costs.
The Group has sufficient financing and facilities available for the foreseeable future.
The changes in the financing arrangements of the Group since the beginning of the financial year were the
issue in March of a new €400 million bond with a maturity of 2018, and a new €600 million bond with a
maturity of 2029. These issues were in anticipation of the repayment of bonds that will expire later in 2014 and
further financing needs for the Group.
There have been no material events, transactions or changes 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 changes in the financial position of the Group which have occurred up to and including 29 April
2014, being the latest practicable date before the date of the publication of this Interim Management
On behalf of the Board
29 April 2014Follow us:
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 200 markets. We have five Global Drive Brands – Dunhill, Kent, Lucky Strike, Pall Mall
and Rothmans – and over 200 brands in our portfolio. We hold robust market positions in each of our regions
and have leadership positions in more than 50 markets.
This Interim Management Statement (IMS) relates to the three months ended 31 March 2014 and contains
information that covers the three months and the period since the first quarter end to 29 April 2014, 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 2014
8 May Payment date of 2013 final dividend
30 July Half-Yearly Report
22 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 the interim dividend for the year ending
31 December 2014 are currently scheduled as follows:Follow us:
Note: Any changes to the dates set out above will be announced. This timetable will be included in the HalfYearly Report scheduled for release on Wednesday 30 July 2014.
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British American Tobacco p.l.c.
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tel: +44 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.
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(PO Box 631, Cape Town 8000, South Africa)
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