| Overview - Adjusted Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2020 | 2019 | Actual | Constant Currency1 | ||
| Tobacco volume | bn SE | 114.6 | 115.2 | -0.5% | -0.5% |
| Tobacco net revenue | £m | 3,509 | 3,508 | 0.0% | +0.9% |
| NGP net revenue | £m | 83 | 148 | -43.9% | -43.2% |
| Tobacco & NGP net revenue | £m | 3,592 | 3,656 | -1.7% | -0.9% |
| Asset Brand net revenue2 | £m | 2,290 | 2,355 | -2.8% | -1.7% |
| Tobacco & NGP adjusted operating profit | £m | 1,383 | 1,538 | -10.1% | -8.5% |
| Distribution adjusted operating profit | £m | 95 | 102 | -6.9% | -4.9% |
| Total adjusted operating profit | £m | 1,469 | 1,620 | -9.3% | -7.7% |
| Adjusted earnings per share | pence | 103.0 | 115.6 | -10.9% | -9.2% |
| Adjusted net debt | £m | (13,476) | (12,958) | ||
| Overview - Reported Basis | Half Year Result | Change | |||
|---|---|---|---|---|---|
| 2020 | 2019 | Actual | |||
| Revenue | £m | 14,672 | 14,390 | +2.0% | |
| Operating profit | £m | 925 | 1,150 | -19.6% | |
| Basic earnings per share | pence | 55.6 | 71.2 | -21.9% | |
| Dividend per share | pence | 41.70 | 62.56 | -33.3% | |
| Reported net debt | £m | (14,144) | (13,381) | ||
See page 3 for basis of preparation and page 13 for the reconciliation between reported and adjusted measures.
1 Constant currency removes effect of exchange rate movements on the translation of the results of our overseas operations.
2 2019 Asset Brand net revenue restated for reclassification of brands. See Basis of Presentation on page 3.
“While we delivered against our revised expectations, we are disappointed with these results, and we remain fully focused on all opportunities to strengthen performance.
“We would like to thank our employees for their hard work and commitment in these challenging times. Their support has been outstanding and we continue to prioritise their health, safety and well-being.
“Our enhanced focus on tobacco has driven stronger in-market execution and an improved share performance, with gains in most of our priority markets. We have reduced our NGP spend following the poor returns on investment last year and this, together with recent weaknesses in the vapour category, has resulted in lower NGP revenue.
“Overall, COVID-19 has so far had only a small impact on trading but we expect this to be more pronounced in the second half due to continued pressures on our duty free and travel retail business, changes in consumption patterns including downtrading and a reversal of some first half inventory build.
“Agreeing the sale of our premium cigar business for €1.2 billion in the current climate was a major achievement and will further simplify the business and reduce debt. Deleveraging remains a key priority, such that the Board has decided to rebase the dividend by one-third to accelerate debt repayment, while retaining a progressive dividend policy, growing annually from the rebased level. This will strengthen the balance sheet and support a more flexible approach to capital allocation in the future.”
Dominic Brisby and Joerg Biebernick
Joint Interim Chief Executives
