British American Tobacco announces quarterly results

This announcement comes at a crucial time as the company seeks to further position itself in key Middle East markets.

The Chairman, Martin Broughton, commented "We expect our real momentum to continue, although these results clearly demonstrate the extent to which good progress can be masked by the impact of the strength of sterling on the translation of our profit."

Across the Middle East and North Africa, BAT operations have enabled governments to collectively gather over US$200 million a year in taxes. The company constantly seeks to work with these governments to achieve sound and fair regulation that can help reduce the impact of tobacco on public health, tackle under age smoking, and ensure that adult consumers are allowed to continue making informed choices about a legal product.

The first ever Corporate Social Responsibility (CSR) conference in the Middle East by the Economist magazine and BAT was held in Dubai in September 2003. BAT shows its continued commitment to corporate social responsibility by again sponsoring and participating in a three-day CSR Dubai based conference in April of this year.

In BAT's first quarter of 2004 financial report, operating profit, excluding goodwill amortisation and exceptional items, was announced as three per cent higher at £640 million, affected by the translation of results at generally weaker exchange rates. At comparable rates of exchange, operating profit would have risen by nine percent.

Group volumes grew by five percent to 192 billion, through solid organic growth and acquisitions. The Group's global drive brands, Kent, Pall Mall, Lucky Strike and Dunhill were up a combined 3 per cent.

Pre-tax profit was three percent lower at £454 million and basic earnings per share fell to 10.53 pence (2003: 10.83 pence). Adjusted diluted earnings per share rose by six percent to 15.59p, benefiting from higher operating profit and the impact of the share buy-back programme.

British American Tobacco has been represented in the Middle East since 1905, when it started business operations in Egypt - only three years after the British American Tobacco Company was founded in 1902.