Overview
- First quarter performance in line with guidance and on track to meet full year outlook
- US business performing well and to plan
- Tobacco net revenue up 16.6%
Strategic Highlights
Strengthening our Portfolio
- Growth Brands outperforming with volumes up 7.3%, net revenue up 10.6% (ex Iraq & Syria), and market share up 100 bps
- Continued success of brand migrations: 23 complete to date and 29 underway
- Growth and Specialist Brands up to 57.0% of reported tobacco net revenue
Developing our Footprint
- Strong performance from ITG Brands; £226m contribution to net revenue
- Growth Markets net revenue up 7.2% (ex Iraq & Syria); Returns Markets up 0.3%
Cost Optimisation
- £55m cost savings confirmed for FY16
Capital Discipline
- Continuing to target cash conversion of over 90% to fund deleveraging and dividend
- On track to deliver full-year dividend growth of at least 10%
Alison Cooper, Chief Executive, commented
“We continued to make good progress against our strategic objectives in the first quarter and are well placed to meet full year expectations. We are further sharpening our focus on quality revenue growth and have advanced the simplification of our portfolio and prioritisation of profitable volume. In the USA, the ITG Brands team has made excellent progress in the quarter successfully executing our retailer and wholesale programmes and establishing the foundations for a year of strong delivery.”
