British American Tobacco plc (BTI) posted stronger-than-expected full year earnings and boosted its dividend as the group prepares to close its $50 billion takeover of Reynolds American (RAI)
"The Group delivered exceptional earnings, volume and market share growth in 2016, despite challenging trading conditions persisting in many of our Key Markets," said chairman Richard Burrows. "Our results this year demonstrate our ability to continue delivering excellent shareholder returns while investing in the future strength of the business."
"The 10% increase in our total dividend for 2016 to 169.4 pence reflects our confidence in our strategy, our people and in generating growth for our shareholders in 2017 and beyond," he added.
Earlier this month, Reynolds posted fourth quarter earnings Thursday that topped Wall Street's forecasts and allayed some concern by the company's penchant for missing its profit goals.
Its fourth quarter numbers came in at 62 cents a share, on an adjusted basis, ahead of the 60 cents that Wall Street had forecast. Sales rose just over 4% to $3.19 billion, easing over the $3.16 billion that Wall Street forecast.
For the full year, the company has forecast EPS of $2.27 to $2.39 a share, though it had recently adjusted its forecasts moderately lower.
