“We’re delivering encouraging improvements in share trends in many of our priority markets after significantly stepping up investment behind our strategy and quality growth. The volume and share gains we achieved with our Growth Brands in the period were particularly pleasing. Our performance is underpinned by the rollout of our Market Repeatable Model, which provides an effective and consistent approach for delivering sustainable quality growth in markets. We are deploying this model in e-vapour and believe it can also be successfully applied to drive growth in other consumer adjacencies. As expected, first half revenue and profit were impacted by the considerable increase in investment. In a challenging industry environment, we are delivering against our strategy and remain on track to meet full year earnings expectations at constant currency. Cash conversion remains strong and we are delivering another dividend increase of 10%.”
| Overview - Adjusted Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2017 | 2016 | Actual | Constant Currency1 | ||
| Total tobacco volume | bn SE | 126.3 | 133.9 | -5.7% | |
| Growth Brand volume | bn SE | 73.0 | 70.7 | +3.2% | |
| Tobacco net revenue | £m | 3,716 | 3,399 | +9.3% | -5.5% |
| Tobacco adjusted operating profit | £m | 1,667 | 1,577 | +5.7% | -8.1% |
| Logistics adjusted operating profit | £m | 82 | 68 | +20.6% | +4.4% |
| Total adjusted operating profit | £m | 1,740 | 1,637 | +6.3% | -7.6% |
| Adjusted earnings per share | pence | 121.9 | 113.0 | +7.9% | -5.9% |
| Dividend per share | pence | 51.7 | 47.0 | +10.0% | |
| Adjusted net debt | £m | (13,927) | (13,710) | ||
| Overview - Reported Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2017 | 2016 | Actual | |||
| Revenue | £m | 14,298 | 12,806 | +11.7% | |
| Operating profit | £m | 902 | 1,002 | -10.0% | |
| Basic earnings per share | pence | 70.7 | 30.4 | +132.6% | |
See page 4 for basis of preparation and page 13 for the reconciliation between reported adn adjusted measures.
1Change at constant currency removes the effect of exchange rate movements on the translation of the results of our overseas operations.
We are investing more behind the right brands and the right markets to deliver further quality growth and ongoing returns. Our Market Repeatable Model provides a clear framework for our investment and is supporting Growth Brand performance and improved market share trends in priority markets.
Strengthening our Portfolio
Developing our Footprint
Cost Optimisation
Capital Discipline
Highlights show movements based on adjusted numbers at constant currency.
