BAT H1 Profit Down, Revenues Climb; Says Confident Of Good Earnings Growth In FY

(RTTNews) - British American Tobacco plc (BATS.L, BTI) reported Thursday that its first-half profit before taxation declined to 3.027 billion pounds from last year's 3.426 billion pounds.

Earnings per share were 15.3% lower at 121.8 pence, compared to 143.8 pence last year. The decline reflected the impact in 2016 of the sale by Reynolds American Inc. of the international brand rights to Natural American Spirit, the company noted.

Adjusted earnings per share were 134.4 pence, compared to 111.1 pence last year.

Profit from operations was 16.3% higher at 2.57 billion pounds, and adjusted profit from operations grew 15.8%.

Revenues for the first half climbed 15.7 percent to 7.72 billion pounds from last year's 6.67 billion pounds. At constant rates, revenues grew 3.5 percent.

Adjusted revenue was 7.65 billion pounds, up 14.7 percent on a reported basis and up 2.5 percent at constant rates, from last year.

The company said the cigarette market share in its Key Markets continued to grow, up 30 basis points, driven by the Global Drive Brands or GDBs which were higher by 50 bps.

Group cigarette volume was 314 billion, 5.6% down against a strong prior year comparator. GDBs' volume was down 1.3%.

Excluding Pakistan, which was impacted by stock movements ahead of an excise-led price increase and the subsequent market contraction, volume declined 2.6%, with the GDBs up 2.6%.

Further, the company said its Board has declared an interim dividend of 56.5p, being one third of the total 2016 dividend, a 10% increase on last year.

Looking ahead, Richard Burrows, Chairman, said the company remains confident of delivering another year of good earnings growth at constant rates of exchange.

The company said it continues to expect profit growth to be weighted to the second half of the year.