Preliminary Results for the twelve months ended 30 September 2012

Sales Growth Momentum

High quality growth through Total Tobacco

  • Tobacco net revenue* up 4 per cent; stick equivalent volumes declined 2.7 per cent
  • Excellent tobacco net revenue growth across our portfolio
    • + 13 per cent key strategic brands: Davidoff; Gauloises Blondes; West and JPS
    • + 13 per cent fine cut tobacco
    • + 10 per cent premium cigars
    • + 46 per cent snus

High margin profits

  • Tobacco adjusted operating margin maintained at 42 per cent
  • 8 per cent adjusted earnings per share growth
  • Strategic investments driving quality growth

Maximising shareholder returns

  • Returns to shareholders increased by 41 per cent in the year to £1.5 billion
  • Full year dividend up 11 per cent; ongoing increase in payout ratio to 52.5 per cent
  • £528 million shares bought; annualised £500 million share buyback ongoing

Spanish goodwill

  • Non-cash impairment of £1.2 billion due to further deterioration in Spanish economic indicators; Spanish adjusted operating profit up 6 per cent

* all tobacco net revenue percentage increases and tobacco adjusted operating margin are on a constant currency basis

Highlights adjusted basis1
2012 Change
Change at constant currency3 2011
Stick equivalents2 336.6bn -2.7% 346.0bn
Tobacco net revenue £7,005m +1% +4% £6,913m
Tobacco adjusted operating profit £2,989m +2% +4% £2,924m
Logistics distribution fees £872m -6% -1% £932m
Logistics adjusted operating profit £176m -4% +2% £183m
Group adjusted operating profit £3,161m +2% +4% £3,103m
Adjusted earnings per share 201.0p +7% +8% 188.0p
Dividend per share 105.6p +11%   95.1p

Alison Cooper, Chief Executive, said:

"We're generating high quality growth by investing in total tobacco brands that will deliver long-term sustainable sales. Revenues were strong across the portfolio and I'm particularly pleased with the excellent performances from our key strategic brands Davidoff, Gauloises Blondes, West and JPS, with volumes up 7 per cent and revenues growing 13 per cent."

"Our portfolio offers consumers unrivalled choice and provides significant opportunities for further growth. Our focus on realising this growth potential, whilst effectively managing cost and cash, will continue to maximise value for our shareholders."

Highlights – reported basis
2012 Change 2011
Revenue £28,574m -2% £29,223
Impairment of intangible assets -£1,187m - -
Operating profit £1,518m -43% £2,640m
Basic earnings per share 68.1p -62% 177.3p
  1. Management believes that these non-GAAP measures provide a useful comparison of business performance and reflect the way in which the business is controlled. Definitions are included in our accounting policies within the notes to the financial statements. Reconciliations between adjusted and reported measures are also included in the relevant notes.
  2. Stick equivalent volumes reflect our combined cigarette and fine cut tobacco volumes. Our 2011 stick equivalent volumes have been restated due to a change to the conversion factors used to convert fine cut tobacco volumes into stick equivalent volumes, reflecting increasing consumption patterns of expanded tobacco products.
  3. To aid understanding of our performance, change at constant currency removes the effects of exchange rate movements on the translation of the results of our overseas operations. References in this document to percentage growth and increases or decreases in our adjusted results are on a constant currency basis unless stated otherwise.

Notes to Editors

Imperial Tobacco Group PLC is a multi-national tobacco company, with international strength in cigarettes and world leadership in fine cut tobacco, premium cigars, rolling papers and tubes. The Group has 47 manufacturing sites and around 37,000 employees and operates in over 160 markets.

Investor Contacts

Gerry Gallagher, Director of Investor Communications +44 (0)7813 917 339
John Nelson-Smith, Investor Relations Manager +44 (0)7919 391 866
Grant Edmunds, Investor Relations Manager +44 (0)7854 521 732

Media Contacts

Alex Parsons, Director of Corporate Communications +44 (0)7967 467 241
Simon Evans, Group Press Officer +44 (0)7967 467 684

A live webcast of a presentation for analysts and investors will be available on www.imperial-tobacco.com from 9.00am (GMT). An archive of the webcast and the presentation script and slides will also be made available during the afternoon.

Interviews with Alison Cooper, Chief Executive and Bob Dyrbus, Finance Director, are available in video, audio and text formats at: www.imperial-tobacco.com and www.cantos.com

High-resolution photographs are available to the media free of charge at:

Alison Cooper will host a media conference call at 7.30am (GMT), at which there will be the opportunity for questions.

Dial in number: +44(0)20 3140 8286
Participant code: 5849007

A replay of this call will be available for one week. To listen, please dial:

Replay Number: +44 (0)20 7111 1244
Access code: 5849007

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