British American Tobacco: Quarterly Report to 30 September 2007

British American Tobacco: Quarterly Report to 30 September 2007

November 01, 2007

    LONDON, Nov. 1 /Xinhua-PRNewswire/ -- 
    
    Summary 

    NINE MONTHS RESULTS                  2007          2006
   Change
    -- unaudited

    Revenue                        GBP 7,312m    GBP 7,251m
      +1%
    Profit from operations         GBP 2,304m    GBP 1,944m
     +19%
    Adjusted diluted  
     earnings per share                82.00p        75.00p
      +9%

    -- The reported profit from operations was 19 per cent
higher at 
       GBP2,304 million, or 8 per cent higher if
exceptional items are 
       excluded. However, profit from operations, at
comparable rates 
       of exchange and excluding exceptional items, would
have been 14 
       per cent higher, with all regions contributing to
this strong result.

    -- Group volumes from subsidiaries were 504 billion, a
decrease of 1 
       per cent, mainly as a result of the high level of
trade buying in 
       some markets at the end of 2006, supply chain
disruptions in the 
       Middle East and the loss of StiX in Germany. In the
third quarter,
       volumes rose slightly over the comparable period
last year. The four 
       global drive brands achieved an overall volume
growth for the nine
       months of 10 per cent, which led to share
improvements in many 
       markets. The reported Group revenue increased by 1
per cent to 
       GBP7,312 million but, at comparable rates of
exchange, would have 
       increased by 6 per cent as a result of more
favourable pricing and 
       an improving product mix.

    -- Adjusted diluted earnings per share rose by 9 per
cent, principally 
       as a result of the strong operating profit
performance, partly offset 
       by the adverse impact from foreign exchange
movements. Basic earnings 
       per share were higher at 82.67p (2006: 70.11p).    


    -- The Chairman, Jan du Plessis, commented, "The
Group's spread of 
       developed and developing markets has continued to
serve shareholders 
       well, with all regions contributing to the strong
results at 
       comparable rates of exchange. There were
improvements in both 
       product mix and share in a broad range of key
markets. 

    Although the momentum of the first six months has been
maintained in the third quarter, we do still expect the
growth in profit from operations at comparable rates of
exchange to slow in the fourth quarter, as a result of
generally higher marketing spend and the timing of price
increases in Brazil." 

    For more information, please contact:

     Investor Relations: 
     Press Office
     Ralph Edmondson
     Tel:   [phone]

     Sharon Woodcock
     Tel:   [phone]

     David Betteridge, Kate Matrunola, or Catherine
Armstrong
     Tel:   [phone]