Interim results for the six months ended 31 March 2017

Delivering against our strategy

  • Results in line with expectations with additional investment programme on track
  • Investments are strengthening share trends in many priority markets, supporting quality growth
  • Strong results from Growth and Specialist Brands, which now generate 60.4% of tobacco net revenue
  • Excellent progress with cost optimisation and reducing business complexity
  • Focus on capital discipline delivering 99.6% cash conversion and 10% dividend growth

Alison Cooper, Chief Executive commented

“We’re delivering encouraging improvements in share trends in many of our priority markets after significantly stepping up investment behind our strategy and quality growth. The volume and share gains we achieved with our Growth Brands in the period were particularly pleasing.

"Our performance is underpinned by the rollout of our Market Repeatable Model, which provides an effective and consistent approach for delivering sustainable quality growth in markets. We are deploying this model in e-vapour and believe it can also be successfully applied to drive growth in other consumer adjacencies.

"As expected, first half revenue and profit were impacted by the considerable increase in investment. In a challenging industry environment, we are delivering against our strategy and remain on track to meet full year earnings expectations at constant currency. Cash conversion remains strong and we are delivering another dividend increase of 10%.”