Interim Management Statement
Overview
· Nine month performance confirms our full year expectations
· Significant progress made with next phase of strategic transition to optimise long-term growth potential:
· new sales divisions established, reinforcing the strategic role of each market;
· strategic review of cigarette and fine cut brands portfolio completed, now being built into execution plans;
· cost optimisation programme on track, with savings of at least £30m to be realised this year;
· new Group Marketing Director appointed
· Encouraging core portfolio performance in an environment of weak industry volumes:
· Underlying1 stick equivalent volume and revenue declines of 5 per cent and 1 per cent
· reported stick equivalent volume and revenue declines of 7 per cent and 3 per cent
· key strategic brands outperforming market trends: underlying1 volumes declined 1 per cent, with growth in total market share; reported volumes were down 4 per cent
· excellent fine cut tobacco performance and good growth in premium cigar and snus.
· notable progress in many key markets including Germany, Greece, Scandinavia, Australia, Taiwan, Vietnam, Algeria, Kazakhstan and Turkey.