Strengthening our Portfolio
Excellent results from Growth Brands with underlying volumes up 12 per cent and net revenue up 15 per cent
Success of brand migration programme continues to support Growth Brand performance
Continued gains from Specialist Brands with underlying net revenue up 2 per cent
Growth and Specialist Brands up to 59 per cent of reported tobacco net revenue (2014: 52 per cent)
Developing our Footprint
Regulatory approval for US acquisition still expected in spring 2015
Momentum continues in Growth Markets with underlying net revenue up 1 per cent (up 4 per cent excluding Iraq)
Positive progress in Returns Markets with adjusted operating profit up 1 per cent
Improving price/mix after strong second quarter
Cost Optimisation
Cost optimisation programme on track to deliver further incremental savings of £85 million in FY15
Capital Discipline
Cash conversion up to 102 per cent; on track for circa 90 per cent for the full year
Adjusted net debt down by £2bn to £9bn in last 12 months
Another dividend increase of 10 per cent
|
Overview - Adjusted Basis |
|
Half Year Result |
Change |
|||
|
|
|
2015 |
2014 |
Actual |
Constant Currency |
Underlying |
|
Growth Brand volume |
bn SE1 |
70.5 |
60.2 |
+17% |
|
+12% |
|
Tobacco net revenue |
£m |
2,945 |
3,054 |
-4% |
+3% |
0% |
|
Tobacco adjusted operating profit |
£m |
1,295 |
1,275 |
+2% |
+5% |
|
|
Logistics adjusted operating profit |
£m |
73 |
73 |
0% |
+10% |
|
|
Total adjusted operating profit |
£m |
1,367 |
1,346 |
+2% |
+5% |
|
|
Adjusted earnings per share |
pence |
93.3 |
89.6 |
+4% |
+7% |
|
|
Interim dividend per share |
pence |
42.8 |
38.8 |
+10% |
|
|
|
Adjusted net debt |
£m |
(9,056) |
(11,027) |
+18% |
|
|
Alison Cooper, Chief Executive, said: "This has been a good start to the year. The progress we're making with our strategic agenda is improving the consistency and quality of our performance, with our Growth Brands delivering 12 per cent underlying volume growth and further gains from our Specialist Brands. We continued to build momentum in our Growth Markets and generated positive results from Returns Markets. Cash conversion was up, our debt reduced significantly and we delivered another dividend increase of 10 per cent. We are building on these successes in the second half and look forward to completing the US deal and realising the benefits of our enhanced brand equity and scale in this important market."
