FULL YEAR HIGHLIGHTS
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Group revenue was up by 2.8% at constant rates of exchange. Reported revenue was 8.4% lower, as a result of adverse exchange rate movements. |
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Adjusted Group profit from operations increased by 4.4% at constant rates of exchange and decreased by 7.2% at current rates of exchange. |
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Profit from operations, at current rates of exchange, was 17.7% lower at £4,546 million, impacted by a non-tobacco litigation charge and adverse exchange movements on a translational and transactional level. |
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Operating margin, at current rates of exchange, grew by more than 50 basis points to 38.7%. |
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Adjusted diluted earnings per share, at constant translational rates of exchange, were up by 7.9%, driven mainly by the growth in adjusted profit from operations. At current rates, it was 3.9% lower at 208.1p. |
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Basic earnings per share were 18.6% lower at 167.1p (2013: 205.4p). |
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Group cigarette volume was 667 billion, a decline of 1.4% against an estimated industry decline of 2.5%. Total tobacco volume was 1.3% lower. |
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Our Global Drive Brands had a very strong year growing volume by 5.8%, primarily driven by Dunhill, Rothmans and Pall Mall. |
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The Group intends to invest US$4.7 billion to maintain a 42% shareholding in the enlarged Reynolds American Inc., after its proposed acquisition of Lorillard, which is contingent on regulatory approval. |
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23 million shares were bought back at a cost of £795 million, excluding transaction costs. Due to the intended investment in Reynolds American Inc., the share buy-back programme was suspended from 30 July 2014. |
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On 23 February 2015, the Group announced that it is evaluating a possible public tender offer to acquire up to all of the 24.7% of Souza Cruz shares which it does not own. |
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The Board has recommended a final dividend of 100.6p, taking the 2014 total dividend to 148.1p per share, an increase of 4%, in line with the intention to grow dividends in real terms. |
