Change Management
BAT boosts share buyback on growth prospects
The group completed a £750 million buyback last year
By CFOWorld staff | CFO UK | Published 10:03, 23 February 12
British American Tobacco increased its share buyback programme on Thursday to £1.25 billion following the completion of a £750 million buyback last year after strong growth in emerging markets.
The world's second-biggest cigarette maker is increasing the share buyback amount for 2012 because the group is confident of growth ahead for its shareholders.
The London-based company, whose brands include Kent, Dunhill, Lucky Strike and Pall Mall cigarettes, is offsetting the decline of smoking in industrialised nations by increasing its prices and making gains from strong growth in developing markets such as Russia, Romania and Pakistan.
"The economic climate around the world is far from settled but we remain confident that our strategy should continue to generate growth for our shareholders in the years ahead," said chairman Richard Burrows in a results statement on Thursday.
The group, which made 705 billion cigarettes last year, posted a rise of 11 percent in 2011 adjusted diluted earnings per share to 194.6 pence narrowly ahead of a company compiled consensus of 194.3p and a ThomsonReuters forecast of 193.9p.
The full-year dividend, which is set at 65 percent of earnings, also rose 11 percent to 126.5p a share.
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