British American Tobacco: Quarterly Report to 31 March 2008

LONDON, May 7 /PRNewswire/ --

    
    - Summary

    
    Three Month                 2008         2007               Change
    Results
 
    Revenue                GBP 2,541m   GBP 2,232m                +14%

    Profit from
     operations              GBP 807m     GBP 684m                +18%

    Adjusted diluted   
     earnings per share        28.44p       24.31p                +17%
     
         -    The reported profit from operations was 18 per cent
              higher at GBP807 million with a similar increase if
              exceptional items are excluded. All regions
              contributed to this strong result. Profit from
              operations, excluding exceptional items, would have
              been 10 per cent higher at comparable rates of
              exchange.
    
         -    The reported Group revenue increased by 14 per cent
              to GBP2,541 million as a result of favourable
              exchange, improved pricing and a better product mix.
              Revenue would have increased by 6 per cent at
              comparable rates of exchange.
    
         -    Group volumes from subsidiaries were 158 billion, an
              increase of 1 per cent, mainly as a result of the
              good performances by the four Global Drive Brands,
              which achieved overall volume growth of 23 per cent
              with around one third of the rise coming from brand
              migrations.
    
         -    Adjusted diluted earnings per share rose by 17 per
              cent, principally as a result of the strong growth in
              profit from operations and favourable exchange
              movements. Basic earnings per share were higher at
              29.92p (2007: 24.24p).
    
         -    The Chairman, Jan du Plessis, commented: "The year
              has clearly got off to a great start, with profit
              growth in all our regions. While the normal caveats
              about not reading too much into any particular
              quarter still apply, the Group's unrivalled spread of
              business between developed and developing markets
              should continue to serve shareholders well."

British American Tobacco p.l.c. Globe House 4 Temple Place London WC2R 2PG

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