Final Results
Strengthening our Portfolio
· Underlying2 volumes of Growth Brands up 7%, driven by organic growth and brand migrations
· Underlying2 net revenue from Specialist Brands up 2%
· Growth and Specialist Brands delivered 54% of underlying2 tobacco net revenue, up 3 percentage points
· Stock optimisation programme completed; stock held by distributors reduced by over 9 billion SE
Developing our Footprint
· Strong performance in Growth Markets with underlying2 net revenue up 7%
· Returns Markets resilient, with adjusted operating profit up 1%
· US acquisition expected to significantly enhance competitive position and increase diversity of Group income
Cost Optimisation
· Cost optimisation programme delivered over £60m savings in the year; on track for £300m pa by 2018
Capital Discipline
· Overall level of adjusted net debt down by £1bn to £8.1bn; a reduction of 11%
· Strong progress with working capital initiatives; cash conversion up 5 percentage points to 91%
· £395 million generated from partial IPO of non-core business Logista, with proceeds used to reduce debt