Enhancing quality of growth
Growth Brands: underlying volumes up 4%, outperforming the market
Specialist Brands: underlying tobacco net revenue up 6%
Growth Markets: underlying tobacco net revenue up 7%
Returns Markets: maintained profit performance
Stock optimisation programme reduced trade inventories
Significant stock reductions achieved, impacting volume, revenue and profit
Stock optimisation programme will strengthen long-term supply effectiveness
Cost optimisation programme on track
Cost optimisation programme on track to deliver incremental savings of £60 million for the full year
Sustainable shareholder returns
Strong interim dividend growth of 10%; quarterly dividend payments to start in 2015
Full year outlook unchanged
Modest adjusted earnings per share growth at constant currency and further dividend growth of at least 10%
Alison Cooper, Chief Executive, said: "We continue to drive our strategy to build the quality and sustainability of the business. Our stock optimisation programme has inevitably impacted some of our numbers but I'm pleased with our underlying performance. Our Growth Brands again outperformed the market, with underlying volumes up 4 per cent. Actively managing our cost base is releasing funds to invest in these brands and their development is being further supported by the stock optimisation programme.
"Our second half priority is to build on our growth momentum with a particular focus on strengthening our market shares, which are on an improving trend across many territories. Conditions are still tough in some markets but we continue to demonstrate our resilience and remain on course to deliver our full year targets.''
