1 May 2007

Imperial Tobacco Group PLC Interim Results for the six months ended 31 March 2007

Highlights

  • Cigarette volumes 90.7bn up 5% (2006: 86.3bn)
  • Revenue (less duty) Ł1,514m up 1% (2006: Ł1,496m)
  • Profit from operations Ł658m up 11% (2006: Ł592m)
  • Adjusted** profit from operations Ł663m up 7% (2006: Ł618m)
  • Basic earnings per share 62.4p up 11% (2006: 56.2p)
  • Adjusted** earnings per share 61.4p up 13% (2006: 54.4p)
  • Interim dividend 21.0p up 14% (2006: 18.5p)

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

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

"In the first half of 2007 we delivered another strong performance, reflecting the continued successful execution of our growth strategy. We maintained our organic growth momentum of the last two years, increasing our global cigarette volumes by 5 per cent and making further cigarette market share gains across all our regions.

"Our success reflected the continued growth of our key cigarette brands Davidoff, West and JPS, supported by robust performances from other brands. We have focused on accelerating the international development of Davidoff since acquiring the worldwide cigarette trademark last year, increasing volumes by 10 per cent and launching the brand in several new markets as well as introducing additional brand variants.

"We will continue to develop our brand and product portfolio in order to build on our cigarette volume growth and strengthen our world leading position in other tobacco products. Further extending our geographic footprint provides additional growth opportunities and through the completion of the $1.9 billion acquisition of Commonwealth Brands, the fourth largest cigarette manufacturer in the US, we now have a sizeable presence in this vast and highly profitable market.

"This, combined with our ongoing commitment to reduce costs and effectively manage our cash, means we are well positioned to build on our success and deliver more value for our shareholders.

"I can confirm that the overall anticipated performance of the Group for the financial year to 30 September 2007 remains in line with our expectations at the time of our March trading update."

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 31 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

Garry Wilson, Investor Relations Manager
+44 (0)117 933 7082

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+44 (0)20 7608 1000

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