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LONDON STOCK EXCHANGE
The
Group's principal activity is manufacturing, marketing and selling tobacco
and tobacco related products. The Group's products include cigarettes,
tobacco, rolling papers and cigars. Product brands include Davidoff, West,
Drum, Rizla, R1, John Player, Maxim, Prima, Bastos, Regal, Capstan, Medium
Navy Cut, Woodbine, Mars, Excellence, Route 66, Lambert & Butler, Richmond,
Horizon, Cabinet, Golden Virginia, Embassy, Regal, Super Kings, Boss, Peter
Stuyvesant, Interval, Champion, JP Blue, Ernte 23, and Van Nelle. The Group
has sales in more than 130 countries across Europe, Asia, the Middle East,
Africa and Australasia. During 2007, the Group acquired the entire share
capital of Houchens Industries Inc.
URL
: http://www.imperial-tobacco.com
Imperial
Tobacco Group PLC Interim Results for the six months ended 31 March 2008
The
information contained herein does not constitute an offer of securities
for sale or solicitation of an offer to purchase securities in any jurisdiction,
including in the United States. The New Shares, Fully Paid Rights
and Nil Paid Rights will not be offered or sold in the United States or
to or for the account or benefit of US persons (as such term is defined
in the US Securities of 1933, as amended (the "Securities Act")) unless
registered under the Securities Act or pursuant to an exemption from such
registration. The New Shares, Fully Paid Rights and Nil Paid Rights have
not been and will not be registered under the Securities Act and no public
offering of the New Shares, Fully Paid Rights and Nil Paid Rights will
be made in the United States. This is an advertisement and not a
prospectus and investors should not subscribe for or purchase any securities
referred to in this document except on the basis of information in the
prospectus.
NOT
FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO OR FROM THE UNITED
STATES, CANADA, AUSTRALIA, JAPAN OR SOUTH AFRICA
Highlights
Cigarette
volumes 121.1bn up 34% (2007: 90.7bn)
Tobacco
net revenue £2,110m up 39% (2007: £1,514m)
Logistics
distribution fees £166m - - ? -
Adjusted**
profit from operations £918m up 38% (2007:
£663m)
Adjusted**
earnings per share 72.4p up 18% (2007: 61.4p)
Interim
dividend 24.0p up? 14% (2007: 21.0p)
Profit
from operations £564m ? down 14% (2007: £658m)
Basic
earnings per share 34.6p down 45% (2007: 62.4p)
Results
include the contribution from Altadis since completion of the acquisition
on 25 January 2008.
**
Adjusted results are reported, where applicable, before amortisation of
acquired intangibles, restructuring costs, retirement benefits net financing
income, fair value gains and losses on derivative financial instruments
in respect of commercially effective hedges and one-off acquisition accounting
adjustments and related tax effects.
Please
note that we have redefined our adjusted measures to exclude one-off acquisition
accounting adjustments. As a result of the Altadis acquisition, in
the six months ended 31 March 2008, these reduced profit from operations
by £117 million.
Altadis
*
Integration projects are being progressed prior to announcement in mid
to late June 2008 and targeted operational efficiencies have been
updated.
*
The Board now believes that the Group will be able to generate annual operating
efficiencies of approximately euro 300 million by the end of the financial
year ending 30 September 2010, rising to approximately euro 400 million
by the end of the financial year ending 30 September 2012.
*
The one-off cash cost of achieving these efficiencies is estimated to be
approximately
euro 600 million, ahead of the euro 470 million previously
estimated,
reflecting the higher efficiency target.
*
The Board also believes that annual net revenue synergies of approximately
euro 60 million will be generated by the end of the financial year ending
30 September 2011.
Operational
Highlights
*
Strong performance enhanced by good contributions from Commonwealth Brands
and Altadis
*
Cigarette and fine cut tobacco share gains in key markets of USA, Germany,
France and Spain, supported by a robust performance in the UK
*
Enhanced profit delivery in the Rest of the World region through increasing
volumes and improving market shares of a number of brands, including West
*
Global volumes of Davidoff up 4 per cent; JPS volumes up 10 per cent
and
encouraging growth from Fortuna and Gauloises Blondes
Rights
Issue
*
Launch of fully underwritten £4.9bn rights issue (net of expenses)
which has been sized to maintain an investment grade credit rating
*
1 new share for every existing 2 shares held on 15 May 2008, at a price
of 1475 pence
*
Price represents a discount of 43.1 per cent based on 19 May closing price
of 2618 pence, adjusted for the interim dividend of 24 pence
*
Details included in separate announcement today
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