Magyar
English
20 May 2008
Imperial Tobacco Group PLC Interim Results for the six months ended 31 March 2008
The information contained herein does not constitute an offer of securities for sale or solicitation of an offer to purchase securities in any jurisdiction, including in the United States. The New Shares, Fully Paid Rights and Nil Paid Rights will not be offered or sold in the United States or to or for the account or benefit of US persons (as such term is defined in the US Securities of 1933, as amended (the "Securities Act")) unless registered under the Securities Act or pursuant to an exemption from such registration. The New Shares, Fully Paid Rights and Nil Paid Rights have not been and will not be registered under the Securities Act and no public offering of the New Shares, Fully Paid Rights and Nil Paid Rights will be made in the United States. This is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this document except on the basis of information in the prospectus.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA
Highlights
Results include the contribution from Altadis since completion of the acquisition on 25 January 2008.
** Adjusted results are reported, where applicable, before amortisation of acquired intangibles, restructuring costs, retirement benefits net financing income, fair value gains and losses on derivative financial instruments in respect of commercially effective hedges and one-off acquisition accounting adjustments and related tax effects.
Please note that we have redefined our adjusted measures to exclude one-off acquisition accounting adjustments. As a result of the Altadis acquisition, in the six months ended 31 March 2008, these reduced profit from operations by Ł117 million.
Altadis
* Integration projects are being progressed prior to announcement in mid to late June 2008 and targeted operational efficiencies have been updated.
* The Board now believes that the Group will be able to generate annual operating efficiencies of approximately euro 300 million by the end of the financial year ending 30 September 2010, rising to approximately euro 400 million by the end of the financial year ending 30 September 2012.
* The one-off cash cost of achieving these efficiencies is estimated to be
approximately euro 600 million, ahead of the euro 470 million previously
estimated, reflecting the higher efficiency target.
* The Board also believes that annual net revenue synergies of approximately euro 60 million will be generated by the end of the financial year ending 30 September 2011.
Operational Highlights
* Strong performance enhanced by good contributions from Commonwealth Brands and Altadis
* Cigarette and fine cut tobacco share gains in key markets of USA, Germany, France and Spain, supported by a robust performance in the UK
* Enhanced profit delivery in the Rest of the World region through increasing volumes and improving market shares of a number of brands, including West
* Global volumes of Davidoff up 4 per cent; JPS volumes up 10 per cent
and encouraging growth from Fortuna and Gauloises Blondes
Rights Issue
* Launch of fully underwritten Ł4.9bn rights issue (net of expenses) which has been sized to maintain an investment grade credit rating
* 1 new share for every existing 2 shares held on 15 May 2008, at a price of 1475 pence
* Price represents a discount of 43.1 per cent based on 19 May closing price of 2618 pence, adjusted for the interim dividend of 24 pence
* Details included in separate announcement today
Summarising today's announcement, Gareth Davis, Chief Executive, said:
"We have had a great start to the year with a strong performance from our core operations and an encouraging initial contribution from Altadis. A review of the activities of the Group as a whole has enabled us to update the targeted operational efficiencies to be generated through integration. We also expect to be able to achieve annual revenue synergies from the Group's enhanced operating platform and brand and product portfolios.
"Operationally, we performed well in our core European markets and were very active building our presence in the USA. It is also pleasing to see the Group generating real momentum in our Rest of the World region, where we see considerable opportunities for growth. Davidoff's international development and volume growth was another highlight, supported by a strong performance from JPS and good progress from Gauloises and Fortuna.
"Our strengthened cigarette portfolio and our world leadership in cigar, fine cut tobacco and papers, provides plenty of scope to grow and develop our business. Combined with our focus on reducing costs and effectively managing our cash, we remain very well placed to continue to deliver long term sustainable value for our shareholders.
"I can confirm that the overall anticipated performance of the Group for the financial year ended 30 September 2008 remains in line with our expectations at the time of our March trading update."
NOTES TO EDITORS
Imperial Tobacco Group PLC is the world's fourth largest international tobacco company. The Group manufactures and sells a comprehensive range of cigarettes, tobaccos, rolling papers, filter tubes and cigars in over 160 countries worldwide.
Enquiries
Imperial Tobacco
Alex Parsons (Head of Corporate Communications)
Telephone: +44 (0)7967 467 241
Simon Evans (Group Press Officer)
Telephone: +44 (0)7967 467 684
Nicola Tate (Investor Relations Manager)
Telephone: +44 (0)7967 467 082
John Nelson-Smith (Investor Relations Manager)
Telephone: +44 (0)791 939 1866
Interviews with Gareth Davis, 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:
www.newscast.co.uk +44 (0)20 7608 1000
Imperial Tobacco's 2008 Interim Results are available at: www.imperial-tobacco.com
Gareth Davis will host the following conference calls, at which there will be the opportunity for questions.
Newswires at 7:30am:
Dial in number: +44 (0)20 7806 1968 (UK)
Dial in number: +34 91 788 9937 (Spain)
Dial in number: +33 (0)1 70 99 42 97 (France)
Dial in number: +49 (0)69 5007 1317 (Germany)
Confirmation Code: 7474487
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 7474487#
European Media at 11:00am:
Dial in number: +44 (0)20 7806 1968 (UK)
Dial in number: +34 91 788 9937 (Spain)
Dial in number: +33 (0)1 70 99 42 99 (France)
Dial in number: +49 (0)69 5007 1316 (Germany)
Confirmation Code: 5042413
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 5042413#
UK Media at 12:00pm:
Dial in number: 020 7138 0818
Confirmation Code: 7441238
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 7441238#
Investors at 2:00pm:
Dial in number: +44 (0)20 7138 0836 (UK)
Dial in number: +1 718 354 1172 (US)
Confirmation Code: 2410484
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 2410484#
Download the full announcement PDF (215K)
The information contained herein does not constitute an offer of securities for sale or solicitation of an offer to purchase securities in any jurisdiction, including in the United States. The New Shares, Fully Paid Rights and Nil Paid Rights will not be offered or sold in the United States or to or for the account or benefit of US persons (as such term is defined in the US Securities of 1933, as amended (the "Securities Act")) unless registered under the Securities Act or pursuant to an exemption from such registration. The New Shares, Fully Paid Rights and Nil Paid Rights have not been and will not be registered under the Securities Act and no public offering of the New Shares, Fully Paid Rights and Nil Paid Rights will be made in the United States. This is an advertisement and not a prospectus and investors should not subscribe for or purchase any securities referred to in this document except on the basis of information in the prospectus.
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA
Highlights
| - Cigarette volumes | 121.1bn | up | 34% | (2007: 90.7bn) |
| - Tobacco net revenue | Ł2,110m | up | 39% | (2007: Ł1,514m) |
| - Logistics distribution fees | Ł166m | - | - | - |
| - Adjusted** profit from operations | Ł918m | up | 38% | (2007: Ł663m) |
| - Adjusted** earnings per share | 72.4p | up | 18% | (2007: 61.4p) |
| - Interim dividend | 24.0p | up | 14% | (2007: 21.0p) |
| - Profit from operations | Ł564m | down | 14% | (2007: Ł658m) |
| - Basic earnings per share | 34.6p | down | 45% | (2007: 62.4p) |
Results include the contribution from Altadis since completion of the acquisition on 25 January 2008.
** Adjusted results are reported, where applicable, before amortisation of acquired intangibles, restructuring costs, retirement benefits net financing income, fair value gains and losses on derivative financial instruments in respect of commercially effective hedges and one-off acquisition accounting adjustments and related tax effects.
Please note that we have redefined our adjusted measures to exclude one-off acquisition accounting adjustments. As a result of the Altadis acquisition, in the six months ended 31 March 2008, these reduced profit from operations by Ł117 million.
Altadis
* Integration projects are being progressed prior to announcement in mid to late June 2008 and targeted operational efficiencies have been updated.
* The Board now believes that the Group will be able to generate annual operating efficiencies of approximately euro 300 million by the end of the financial year ending 30 September 2010, rising to approximately euro 400 million by the end of the financial year ending 30 September 2012.
* The one-off cash cost of achieving these efficiencies is estimated to be
approximately euro 600 million, ahead of the euro 470 million previously
estimated, reflecting the higher efficiency target.
* The Board also believes that annual net revenue synergies of approximately euro 60 million will be generated by the end of the financial year ending 30 September 2011.
Operational Highlights
* Strong performance enhanced by good contributions from Commonwealth Brands and Altadis
* Cigarette and fine cut tobacco share gains in key markets of USA, Germany, France and Spain, supported by a robust performance in the UK
* Enhanced profit delivery in the Rest of the World region through increasing volumes and improving market shares of a number of brands, including West
* Global volumes of Davidoff up 4 per cent; JPS volumes up 10 per cent
and encouraging growth from Fortuna and Gauloises Blondes
Rights Issue
* Launch of fully underwritten Ł4.9bn rights issue (net of expenses) which has been sized to maintain an investment grade credit rating
* 1 new share for every existing 2 shares held on 15 May 2008, at a price of 1475 pence
* Price represents a discount of 43.1 per cent based on 19 May closing price of 2618 pence, adjusted for the interim dividend of 24 pence
* Details included in separate announcement today
Summarising today's announcement, Gareth Davis, Chief Executive, said:
"We have had a great start to the year with a strong performance from our core operations and an encouraging initial contribution from Altadis. A review of the activities of the Group as a whole has enabled us to update the targeted operational efficiencies to be generated through integration. We also expect to be able to achieve annual revenue synergies from the Group's enhanced operating platform and brand and product portfolios.
"Operationally, we performed well in our core European markets and were very active building our presence in the USA. It is also pleasing to see the Group generating real momentum in our Rest of the World region, where we see considerable opportunities for growth. Davidoff's international development and volume growth was another highlight, supported by a strong performance from JPS and good progress from Gauloises and Fortuna.
"Our strengthened cigarette portfolio and our world leadership in cigar, fine cut tobacco and papers, provides plenty of scope to grow and develop our business. Combined with our focus on reducing costs and effectively managing our cash, we remain very well placed to continue to deliver long term sustainable value for our shareholders.
"I can confirm that the overall anticipated performance of the Group for the financial year ended 30 September 2008 remains in line with our expectations at the time of our March trading update."
NOTES TO EDITORS
Imperial Tobacco Group PLC is the world's fourth largest international tobacco company. The Group manufactures and sells a comprehensive range of cigarettes, tobaccos, rolling papers, filter tubes and cigars in over 160 countries worldwide.
Enquiries
Imperial Tobacco
Alex Parsons (Head of Corporate Communications)
Telephone: +44 (0)7967 467 241
Simon Evans (Group Press Officer)
Telephone: +44 (0)7967 467 684
Nicola Tate (Investor Relations Manager)
Telephone: +44 (0)7967 467 082
John Nelson-Smith (Investor Relations Manager)
Telephone: +44 (0)791 939 1866
Interviews with Gareth Davis, 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:
www.newscast.co.uk +44 (0)20 7608 1000
Imperial Tobacco's 2008 Interim Results are available at: www.imperial-tobacco.com
Gareth Davis will host the following conference calls, at which there will be the opportunity for questions.
Newswires at 7:30am:
Dial in number: +44 (0)20 7806 1968 (UK)
Dial in number: +34 91 788 9937 (Spain)
Dial in number: +33 (0)1 70 99 42 97 (France)
Dial in number: +49 (0)69 5007 1317 (Germany)
Confirmation Code: 7474487
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 7474487#
European Media at 11:00am:
Dial in number: +44 (0)20 7806 1968 (UK)
Dial in number: +34 91 788 9937 (Spain)
Dial in number: +33 (0)1 70 99 42 99 (France)
Dial in number: +49 (0)69 5007 1316 (Germany)
Confirmation Code: 5042413
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 5042413#
UK Media at 12:00pm:
Dial in number: 020 7138 0818
Confirmation Code: 7441238
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 7441238#
Investors at 2:00pm:
Dial in number: +44 (0)20 7138 0836 (UK)
Dial in number: +1 718 354 1172 (US)
Confirmation Code: 2410484
A replay of this call will be available for one week. To listen, please dial:
+44 (0)20 7806 1970
Code: 2410484#
Download the full announcement PDF (215K)
06 1 412 8200
info@hu.imptob.com