Preliminary results for the 12 months ended 30 September 2016

 Performance Headlines

  • Tobacco net revenue up 9.7%
  • Total adjusted operating profit up 10.4%
  • Adjusted EPS up 12.0%
  • Cash conversion 95%
  • Dividend growth of 10%


Next Phase of Strategy to Support Sustainable Quality Growth

  • Strategy is delivering a stronger business providing a solid foundation for the next decade of growth
  • Maintaining focus on our same four strategic priorities to drive growth in both revenue and profit
  • New investment of £300m in FY17 behind selected quality growth opportunities
  • Supported by a further phase of cost optimisation with an additional £300m of annual savings by 2020

Alison Cooper, Chief Executive, commented

“We delivered another strong performance this year with great results from our expanded US business, and we further improved the quality of our growth. We grew the dividend by 10 per cent for the eighth consecutive year and remain committed to this level of increase over the medium term. Our strategy is delivering and we see scope for significant further shareholder value creation by remaining relentlessly focused on the same four strategic priorities.

“We are today also announcing further investment behind our strategy to support revenue growth over the medium term. This investment will be funded by a new phase of cost optimisation, targeting a further £300m of annual savings by 2020, at a cost of £750m. We have established an excellent platform for sustainable quality growth, which will continue to provide growing returns for shareholders.”