BAT’s profits climb despite drop in volumes
by Staff Writer,
2016-02-25 11:03:34.0
BRITISH American Tobacco (BTI, BAT) reported higher profits on Thursday despite a continued drop in group cigarette volumes.
Operating profit rose 13.6% to £5.2bn at constant rates of exchange or 0.2% to £4.6bn at current rates of exchange compared with the year-earlier period.
Group cigarette volumes were down 0.5% to 663-billion against an estimated industry decline of 2.3%. Total tobacco volume was 0.8% lower than the previous year. Headline earnings per share (HEPS) climbed to 209.8 pence from 169.1p in the year-earlier period.
The company proposed a final dividend of 104.6p per share subject to shareholder approval at the annual general meeting on April 27 2016.
BAT chairman Richard Burrows said the group experienced an excellent year in 2015.
"Led by growth across all of our global drive brands, the group delivered another year of very good revenue and profit growth at constant rates of exchange. Despite significant currency headwinds impacting reported results, the excellent underlying performance of the group in 2015 and the increase in our total dividend for 2015 to 154p are testimony to the strength of the business, our strategy and our confidence in the future," he said.
In response to a BBC story published late last year alleging that BAT bribed politicians and civil servants in East Africa, the company said it had appointed an external law firm to conduct a "full investigation" and had informed the UK’s Serious Fraud Office of its measures.
At 9.43am, BAT’s share price was up 0.49% to R835, valuing the company at about R1.6-trillion
Picture: REUTERS
BRITISH American Tobacco (BTI, BAT) reported higher profits on Thursday despite a continued drop in group cigarette volumes.
Operating profit rose 13.6% to £5.2bn at constant rates of exchange or 0.2% to £4.6bn at current rates of exchange compared with the year-earlier period.
Group cigarette volumes were down 0.5% to 663-billion against an estimated industry decline of 2.3%. Total tobacco volume was 0.8% lower than the previous year. Headline earnings per share (HEPS) climbed to 209.8 pence from 169.1p in the year-earlier period.
The company proposed a final dividend of 104.6p per share subject to shareholder approval at the annual general meeting on April 27 2016.
BAT chairman Richard Burrows said the group experienced an excellent year in 2015.
"Led by growth across all of our global drive brands, the group delivered another year of very good revenue and profit growth at constant rates of exchange. Despite significant currency headwinds impacting reported results, the excellent underlying performance of the group in 2015 and the increase in our total dividend for 2015 to 154p are testimony to the strength of the business, our strategy and our confidence in the future," he said.
In response to a BBC story published late last year alleging that BAT bribed politicians and civil servants in East Africa, the company said it had appointed an external law firm to conduct a "full investigation" and had informed the UK’s Serious Fraud Office of its measures.
At 9.43am, BAT’s share price was up 0.49% to R835, valuing the company at about R1.6-trillion
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