BAT rolls out healthy ’06 profits

LONDON – British American Tobacco announced yesterday that net profits climbed 7,3 per cent last year as the company was bolstered by rising sales in Asia and South America.

BAT, maker of Dunhill, Kent and Lucky Strike cigarettes, also unveiled plans to increase returns to investors through higher dividend payouts and a larger share buy-back programme. The news was welcomed by the market, with BAT’s share price soaring 3,49 per cent to 1 603 pence in morning trade.Net profit increased to 1,9 billion pounds in 2006, compared with the previous year, BAT said in an official earnings release.Sales rose by 4,7 per cent to 9,8 billion pounds.BAT also raised its 2006 dividend payout by a greater-than-expected 19 per cent to 55,90 pence per share and signalled further increases this year and next.Meanwhile, the group’s current annual 500-million-pound share buyback programme will rise to 750 million from this year.The company stressed that it could be suspended in the event of a “significant acquisition.”Nampa-AFPThe news was welcomed by the market, with BAT’s share price soaring 3,49 per cent to 1 603 pence in morning trade.Net profit increased to 1,9 billion pounds in 2006, compared with the previous year, BAT said in an official earnings release.Sales rose by 4,7 per cent to 9,8 billion pounds.BAT also raised its 2006 dividend payout by a greater-than-expected 19 per cent to 55,90 pence per share and signalled further increases this year and next.Meanwhile, the group’s current annual 500-million-pound share buyback programme will rise to 750 million from this year.The company stressed that it could be suspended in the event of a “significant acquisition.”Nampa-AFP