British American Tobacco H1 Profit Rises, Ups Dividend

(RTTNews) - British American Tobacco Plc (BTI, BATS.L) Wednesday said first-half profit increased from the prior year, helped partly by pricing. The company increased its dividend by 7 percent.

Chief executive Nicandro Durante said, "We performed well during the first half of the year with strong pricing momentum, increased market share and continued growth in our Global Drive Brands, strengthening the foundations for another year of good results in line with our long term strategic goals."

Profit attributable to owners of the parent increased to 2.04 billion pounds or $3.11 billion from 1.91 billion pounds. Earnings per share rose to 106.1 pence from 97.3 pence. Prior-year results have been restated.

Adjusted earnings per share were 109.1 pence, while it totaled 101.3 pence last year.

Pre-tax profit advanced to 2.99 billion pounds from 2.85 billion pounds.

Revenue improved 2 percent to 7.572 billion pounds from 7.452 billion pounds. The growth was 4 percent on a currency-neutral basis amid good pricing momentum. Exchange rate movements hurt three of the four regions.

Revenue was up 3 percent in Asia-Pacific at 2.108 billion pounds, while it fell 3 percent in the Americas to 1.65 billion pounds.

Western Europe generated 1.714 billion pounds, up 4 percent from last year. In EEMEA, the growth was nearly 3 percent at 2.10 billion pounds.

The tobacco firm said its business performance was impacted by industry volume contraction in some parts of the world and persisting fragile economic conditions, notably in Europe.

Group cigarette volume fell 3.4 percent to 332 billion and tobacco volume, including cigarettes, was 3.2 percent lower.

Cigarette market share grew in the Top 40 markets, led by the good performances of the Global Drive Brands or GDBs. Globally, Dunhill, Lucky Strike and Pall Mall all grew market share, while Kent was stable.

Additionally, the board declared an interim dividend of 45.0 pence, up 7 percent from last year.

Looking ahead, the firm is confident of another year of good earnings growth.

Separately, the company said John Daly would resign as chief operating officer at the end of December. He will focus on the transitioning of key projects and initiatives in the first quarter of 2014. He will retire from the board in April 2014.

The cigarette maker does not plan to appoint a further Executive Director or successor to the role of Chief Operating Officer. The four Regional Directors and the Group Operations Director will report to the Chief Executive Officer directly from January 1, 2014.

BATS.L is adding 0.30 percent in early morning trade at 3,473.50 pence.