Delivering Quality Growth in Tobacco and NGP

• Net revenue up 2% (1% tobacco and 1% NGP); adjusted EPS up 5%
• Sustained tobacco investment delivering quality growth with Asset Brands now 67% of net revenue
• Strong NGP results: blu growth and expanding innovation pipeline
• Reported EPS down 2.7% at actual rates impacted by Palmer & Harvey write-off and adverse FX
• Dividend growth of 10%, supported by cash conversion of 97%
• Divestment programme on track to deliver up to £2bn of proceeds

Alison Cooper, Chief Executive, commented:

“FY18 was a successful year of delivery against our strategy and I’m pleased with the progress we are making in creating something better for the world’s smokers. In NGP our main focus is on transitioning smokers to blu, a significantly less harmful alternative to cigarettes. NGP also offers additive opportunities for our shareholders and the success of the international rollout of myblu has put us in a strong position to further invest and accelerate sales growth in FY19. In tobacco we focus on providing smokers with an evolving portfolio of high quality brands. Following our additional brand investment in tobacco over the past two years, we have increased Growth Brand volume, share and revenue in our priority markets. Our financial delivery was strong, with revenue and earnings growth, high cash generation and a further dividend increase of 10 per cent. Capital discipline remains central to all our activities, providing funds for investment and enhancing returns. We have the strategy, assets and capabilities to realise the significant opportunities presented by a changing environment and to generate growing returns for our shareholders.”

Download full statement