24th Apr 2008 14:31
Imperial Tobacco Group PLC24 April 2008 ALTADIS GROUP RESULTS FOR THE TWELVE MONTHS ENDED 31 DECEMBER 2007 Imperial Tobacco Group PLC (Imperial) announces that it has today filed theaccounts of its wholly owned subsidiary, Altadis, for the year ended 31 December2007 with the Spanish Mercantile Registry. Highlights of these consolidated results are as follows. Economic Sales euro 4,058m up 2% (2006: euro 3,970m)EBITDA euro 1,208m up 5% (2006: euro 1,148m)Basic earnings per share 160c down 8% (2006: 175c)Underlying earnings per share 194c up 5% (2006: 184c)Operating Free Cash Flow* euro 758m down 20% (2006: euro 951m) Results are prepared under International Financial Reporting Standards ("IFRS"). *Operating Free Cash Flow = operating flow less corporation tax and maintenancecapital expenditure Altadis' operating results for the year ended 31 December 2007 were in line withmanagement's expectations. Imperial will be announcing its results for the half year ended 31 March 2008 on20 May, which will include details of the performance of Altadis from 25January, 2008, the date on which the acquisition was completed. On a constant dollar and perimeter basis, growth in Economic Sales and EBITDAwould have been 5% and 9% respectively. The decline in basic earnings per share was mainly due to an impairment chargein respect of Balkan Star in Russia and its tax consequences. If this isexcluded, the underlying figure would be 194 euro cents, an increase of 5% on alike for like basis. A summary of the highlights behind the Group's strong operational performanceand organic growth in all divisions is as follows. Cigarettes Volume (billion units) 120.7* up 2% (2006:118.6**)Economic Sales euro 1,746m up 3% (2006: euro 1,693m)EBITDA euro 621m up 19% (2006: euro 524m)EBITDA margin 35.6% up 460bps (2006: 31.0%) ** Including sales licensed to third parties of 6.2 billion and 7.9 billioncigarettes for 2006 and 2007 respectively. The Cigarette Division grew significantly during the year with strong positiveperformances in Spain, Morocco and the Middle East. In Spain, the market stabilised following the tax changes in 2006 with growth inblond market share and the benefit of price increases driving a significantimprovement in profit. In France, the impact of restrictions on smoking in public places introduced inFebruary 2007 was offset by a price increase in August 2007, the first one sinceJanuary 2004. In Morocco, a strong performance was due to growth in both volumes and marketshare as well as mix improvement. The challenging market conditions in Germany continue to cause downtrading,impacting the premium and vending segments in which Altadis is particularlystrong. Cigars Volume (million cigars) 3,165 down 4% (2006: 3,281)Economic Sales euro 842m down 5% (2006: euro 888m)EBITDA euro 262m down 7% (2006: euro 281m)EBITDA margin 31.0% down 70bps (2006: 31.7%) The performance of the Cigar Division was impacted by the weakness of the USdollar. At constant exchange rates, economic sales rose by 2% and EBITDA by 1%. In the USA, product launches and additional advertising and promotionexpenditure to address Q1 sales declines showed positive results later in theyear in spite of challenging market trends. Sales of Cuban cigars grew by 6% in dollar terms with improvements in bothmature and emerging markets. The Spanish cigar market recovered from the declines in 2006 with volume andsales growth of 6% and 5% respectively. Logistics IFRS Revenue euro 10,638m up 1% (2006: euro 10,481m)Economic Sales euro 1,258m up 6% (2006: euro 1,191m)EBITDA euro 317m up 2% (2006: euro 310m)EBITDA margin 25.2% down 80bps (2006: 26.0%) Economic sales in tobacco and general products grew strongly by 5% and 6%respectively. Declining cigarette market volumes in Spain, France and Italy impacted overallEBITDA. However, improved pricing in Spain contributed to the tobaccoperformance. Growth in non-tobacco products was driven by a strong performance fromtransportation services in Spain. Copies of a summary slide presentation of Altadis' 2007 financial results areavailable in English on www.imperial-tobacco.com and in English, Spanish andFrench on www.altadis.com. NOTES TO EDITORS Imperial Tobacco Group PLC Imperial Tobacco Group PLC is the world's fourth largest international tobaccocompany. The Group manufactures and sells a comprehensive range of cigarettes,tobaccos, rolling papers, filter tubes and cigars in over 160 countriesworldwide. ENQUIRIESAlex Parsons, Head of Corporate Communications +44 (0)117 933 7241Simon Evans, Group Press Officer +44 (0)117 933 7375John Nelson-Smith, Investor Relations Manager +44 (0)117 933 7032Nicola Tate, Investor Relations Manager +44 (0)117 933 7082Pedro Alonso de Ozalla, Altadis Head of InvestorRelations +34 (0)91 360 92 47 FINANCIAL STATEMENTS-------------------- ALTADIS GROUPCONSOLIDATED INCOME STATEMENTSFor the year ended 31 December 2007 2007 2006 euro m euro m Revenue 12,548 12,504Other operating income 181 133Procurements (7,979) (8,046)Personnel expenses (906) (882)Depreciation and amortisation (172) (199)Impairment (94) (32)Other operating expenses (2,718) (2,620)Financial revenues 113 121Financial costs (228) (221)Net foreign exchange Gain/(Loss) (10) (16)Profit from associates 9 9 ----------- -----------PROFIT BEFORE TAX 744 751Income tax expense (281) (242) ----------- -----------PROFIT FOR THE YEAR 463 509 ----------- -----------Attributable to:Equity holders of the Parent Company 404 453Minority interest 59 56 Earnings per share euro 1.60 euro 1.75 ALTADIS GROUP CONSOLIDATED BALANCE SHEETAt 31 December 2007 2007 2006 euro m euro mNon-current assetsProperty, plant and equipment 833 883Investment property 10 16Goodwill 2,607 2,749Other intangible assets 694 778Investments in associates 36 34Non-current financial assets 57 238Deferred tax assets 521 464 ----------- -----------Total non-current assets 4,758 5,162 ----------- -----------Current assetsInventories 1,937 1,985Trade and other receivables 2,400 2,481Tax receivable 184 204Current financial assets 76 129Cash and cash equivalents 740 1,159Other current assets 39 50 ----------- ----------- 5,376 6,008 ----------- -----------Non-current assets held for sale 22 30 ---------- ----------Total assets 10,156 11,200 ----------- ----------- EquityShare capital 25 26Treasury stock (41) (141)Parent Company reserves 229 335Reserves in consolidated companies 23 (6)Valuation adjustments recognised in equity (11) 3Consolidated profit for the year 404 453 ----------- -----------Net equity attributable to equity holders of the Parent 629 670Minority interest 247 262 ----------- -----------Total equity 876 932 ----------- -----------Non-current liabilitiesBonds and other marketable securities 989 1,592Borrowings and other financial liabilities 400 602Finance lease payables 38 41Other liabilities 82 39Provisions 431 451Deferred tax liabilities 245 213 ----------- -----------Total non-current liabilities 2,185 2,938 ----------- -----------Current liabilitiesBonds and other marketable securities 783 487Borrowings and other financial liabilities 825 1,204Finance lease payables 3 4Trade and other payables 1,299 1,308Other liabilities 208 253Tax payable 3,903 3,991Provisions 74 83 ----------- -----------Total current liabilities 7,095 7,330 ----------- -----------Total Equity and liabilities 10,156 11,200 ----------- ----------- ALTADIS GROUP CONSOLIDATED STATEMENT OF RECOGNISED INCOME AND EXPENSEFor the year ended 31 December 2007 2007 2006 euro m euro m Gain/(loss) on available-for-sale investments taken to equity (39) 27Gain/(loss) on cash flow hedges taken to equity 3 3Actuarial gain/(loss) recognised in equity 1 (15)Translation differences (94) (104)Income tax on income/(expense) taken directly to equity 9 (5) ----------- -----------Net income/(expense) taken directly to equity (120) (94)Profit for the year 463 509 ----------- -----------Total recognised income and expense for the period 343 415 ----------- -----------Attributable to:Equity holders of the Parent Company 294 355Minority interest 49 60 ----------- -----------Total attributable 343 415 ----------- ----------- ALTADIS GROUP CONSOLIDATED CASH FLOW STATEMENTFor the year ended 31 December 2007 2007 2006 euro m euro mCash flows from operating activitiesConsolidated profit before taxes 744 751 Amortisation, depreciation and impairment losses 266 231 Income from equity method companies (9) (9) Net financial (income)/loss 125 116 Other net income and expenses 82 59 ----------- -----------Cash flows from ordinary activities 1,208 1,148 Changes in working capital (including operating provisions) 37 227 Income taxes paid (321) (276) Restructuring costs (161) (111) ----------- -----------Net cash generated by operating activities (i) 763 988 ----------- ----------- Cash flows from investing activities Dividends received 4 5 Short term financial investments 49 49 Proceeds on sale of assets, subsidiaries and available-for-sale financial assets 321 280 Acquisition of intangible assets and property, plant and equipment (166) (188) Acquisition of subsidiaries, net of cash acquired (1) (34) ----------- -----------Net cash generated by investing activities (ii) 207 112 ----------- ----------- Cash flows from financing activities Net financial expense (122) (103) Dividends paid (***) (299) (282) Payment for treasury stock (***) and Shareholders' Meeting attendance fee (71) (516) Variations in debt (887) (120) ----------- ------------Net cash used in financing activities (iii) (1,379) (1,021) ----------- ------------ Cash and cash equivalents at start of year 1,159 1,092Net increase/(decrease) in cash and cash equivalents (i+ii+iii) (409) 79Effects of exchange rate changes (10) (12) ----------- -----------Cash and cash equivalents at end of year 740 1,159 ----------- ----------- (***) Includes transactions by the Parent Company and subsidiaries This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Imperial Brands