“This has been another half of pleasing underlying tobacco performance enhanced by the growing contribution of our NGP business, with overall revenues up 2.5 per cent; and Europe and the Americas both growing revenue by 4%. In tobacco, we continue to focus on our longstanding brand and market priorities, and are delivering high margin sales growth. Our Asset Brands continue to outperform and now represent two thirds of our revenue. We have made significant progress in building our NGP business with investment behind myblu generating awareness and consumer adoption, resulting in leading retail shares in most markets. We are building on this momentum in the second half focused on further omnichannel expansion and new product initiatives. We have set the foundations for accelerated revenue growth and we are on track to meet our full year expectations.”
Alison Cooper
Chief Executive
| Overview - Adjusted Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2019 | 2018 | Actual | Constant Currency1 | ||
| Tobacco volume | bn SE | 115.2 | 123.6 | -6.9% | -6.9% |
| Net revenue2 | £m | 3,656 | 3,523 | +3.8% | +2.5% |
| Asset Brand net revenue2 | £m | 2,386 | 2,213 | +7.8% | +7.0% |
| Tobacco & NGP adjusted operating profit | £m | 1,538 | 1,533 | +0.3% | -1.8% |
| Distribution adjusted operating profit | £m | 102 | 99 | +3.0% | +3.0% |
| Total adjusted operating profit | £m | 1,620 | 1,624 | -0.2% | -2.3% |
| Adjusted earnings per share | pence | 115.6 | 114.3 | +1.1% | -1.3% |
| Adjusted net debt | £m | (12,958) | (12,698) | ||
| Overview - Reported Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2019 | 2018 | Actual | |||
| Revenue2 | £m | 14,390 | 14,060 | +2.3% | |
| Operating profit | £m | 1,150 | 833 | +38.1% | |
| Basic earnings per share | pence | 71.2 | 51.7 | +37.7% | |
| Dividend per share | pence | 62.56 | 56.87 | +10.0% | |
| Reported net debt | £m | (13,381) | (13,008) | ||
See page 3 for basis of preparation and page 13 for the reconciliation between reported and adjusted measures.
1 Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.
2 2018 revenue restated following adoption of IFRS 15.
On Track to Deliver FY19
