31 October 2006

Imperial Tobacco Group PLC Preliminary Results for the twelve months ended 30 September 2006

Highlights

  • Cigarette volumes 186.9bn up 7% (2005: 175.2bn)
  • Revenue less duty Ł3,162m up 1% (2005: Ł3,123m)
  • Profit from operations Ł1,311m up 6% (2005: Ł1,240m)
  • Adjusted** profit from operations Ł1,356m up 5% (2005: Ł1,297m)
  • Basic earnings per share 122.2p up 13% (2005: 108.6p)
  • Adjusted** earnings per share 122.2p up 9% (2005: 112.2p)
  • Full year dividend 62.0p up 11% (2005: 56.0p)
Results are prepared under International Financial Reporting Standards ("IFRS").

** Adjusted results are reported, where applicable, before restructuring costs, retirement benefit net finance income, certain fair value changes on derivatives and related tax effects.

Summarising today’s announcement, Gareth Davis, Chief Executive, said:

"We delivered another strong set of results in 2006, clearly demonstrating our organic volume growth capability, whilst continuing to reduce costs, improve efficiencies and effectively manage our cash.

"Our organic growth performance was especially pleasing as we increased cigarette volumes by 7% and gained cigarette market shares across all our regions including the UK, where we enhanced our leadership position, and Germany where we made further good progress.

"Our premium international cigarette brand Davidoff again increased its global volumes. We were very pleased to secure ownership of the worldwide Davidoff cigarette trademark, which will enable us to accelerate this growth going forward.

"The strength of our broad brand and product portfolio provides us with good representation across all price segments. This was reflected in encouraging volume and market share gains from Davidoff, West, JPS and a number of regional cigarette brands in the Rest of Western Europe and the Rest of the World.

"These robust cigarette performances, combined with our world leading position in other tobacco products and rolling papers, ensure we are well placed to deliver further organic growth.

"This year is our tenth anniversary as a public company and during that time we have developed an excellent track record in profit delivery, earnings growth and shareholder returns.

"We remain committed to building on our successes going forward; taking advantage of widening geographic opportunities, investing further in brand development and continuing to buy back shares whilst we seek value creating acquisitions. The business is in great shape and I am confident that we can continue to create sustainable value for our shareholders.

"Finally, our Chairman Derek Bonham will be retiring soon and I would like to thank him for his support and wise counsel over the years. Derek was the founder of the modern Imperial Tobacco and the business has benefited immeasurably from his inspirational leadership. I wish him continued success and happiness in the future."

Notes to Editors

Imperial Tobacco Group PLC
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 130 countries worldwide. It has around 14,500 employees and 32 manufacturing sites.

Enquiries
Alex Parsons, Group Media Relations Manager +44 (0)7967 467 241
Simon Evans, Group Media Relations Executive +44 (0)7967 467 684
John Nelson-Smith, Investor Relations Manager +44 (0)117 933 7032

Interviews with Gareth Davis, Chief Executive, and Bob Dyrbus, Finance Director, are available in video, audio and text formats in the presentations page and www.cantos.com

Download the full announcement in Adobe PDF (151K)