Table 1.
Profitability (measured using EBITA Margin (%)) for Europe’s two major tobacco companies and comparator European consumer staple companies
| FY10A | FY11E | FY12E | FY13E | |
|---|---|---|---|---|
| BAT * | 0.335 | 0.353 | 0.358 | 0.364 |
| Imperial Tobacco | 0.390 | 0.396 | 0.396 | 0.400 |
| Diageo | 0.285 | 0.296 | 0.304 | 0.310 |
| Pernod-Ricard | 0.257 | 0.254 | 0.252 | 0.256 |
| SABMiller | 0.183 | 0.195 | 0.199 | 0.205 |
| Heineken | 0.150 | 0.158 | 0.162 | 0.171 |
| Carlsberg | 0.172 | 0.173 | 0.178 | 0.179 |
| C&C Group | 0.206 | 0.190 | 0.203 | 0.207 |
| Britvic | 0.127 | 0.116 | 0.121 | 0.129 |
| AB Foods | 0.090 | 0.085 | 0.085 | 0.088 |
| Danone | 0.154 | 0.147 | 0.148 | 0.149 |
| Nestle | 0.140 | 0.137 | 0.154 | 0.155 |
| Unilever | 0.153 | 0.154 | 0.155 | 0.157 |
| Premier Foods | 0.147 | 0.154 | 0.157 | 0.156 |
| Tate & Lyle | 0.118 | 0.117 | 0.123 | 0.123 |
| Reckitt Benckiser | 0.268 | 0.259 | 0.256 | 0.260 |
| L’Oreal | 0.163 | 0.165 | 0.169 | 0.172 |
| Henkel | 0.131 | 0.134 | 0.139 | 0.140 |
| Beiersdorf | 0.125 | 0.101 | 0.117 | 0.122 |
| Non-Tobacco Average | 0.169 | 0.167 | 0.172 | 0.175 |
| Non-Tobacco or alcohol Average | 0.147 | 0.143 | 0.148 | 0.150 |
Source: Various Citigroup ‘Consumer Staples business analyst investment reports.
*
Data for BAT is EBIT margin (meaning that it includes the costs of amortisation) which reports a slightly lower level of profitability than equivalent EBITA Margin figures.