Cadbury Schweppes plc reports on financial performance for the 24 weeks ended 19 June 2005.
First Half 2005 Highlights
- Sales up 6% driven by higher investment and innovation
- Confectionery sales +7%: led by growth in Cadbury Dairy Milk (+9%), Trident (+15%) and Halls (+17%)
- Beverage sales +4%: continued share gains in US carbonates and strong growth in Mexico and Australia
- Underlying operating margins ahead by 10 basis points: cost savings in line with plan offset by higher investment in growth initiatives
- Underlying earnings per share up 8%
(all movements at constant exchange rates)
Todd Stitzer, Chief Executive Officer said: "We've had a strong start to the year as increased investment in growth and focus on innovation and marketplace execution have had a positive impact on our businesses around the world. Although the external environment is likely to remain challenging, we will continue to increase investment behind long-term growth and expect to deliver within our goal ranges for the full year."
| Half Year End June |
2005
24 weeks
£m |
2004
24 weeks
£m |
Reported
currency
growth
% |
Constant
currency #
growth
% |
|
| Revenue |
3,127 |
2,954 |
+6 |
+6 |
| |
|
|
|
|
| Underlying profit from ops * |
451 |
427 |
+6 |
+7 |
| Underlying op. margin |
14.4% |
14.5% |
-10bps |
+10bps |
| |
|
|
|
|
| - IAS 39 adjustment |
9 |
n/a |
|
|
| - Amortisation of intangibles |
(3) |
(3) |
|
|
| - Restructuring costs |
(33) |
(39) |
|
|
| - Non trading items |
(2) |
4 |
|
|
| |
|
| Profit from operations |
422 |
389 |
+8% |
+10% |
| |
|
|
|
|
| Underlying Profit before Tax * |
370 |
350 |
+6 |
+7 |
| Profit before Tax |
344 |
312 |
+10 |
+12 |
| |
|
| |
|
|
|
|
| Underlying EPS * |
12.5p |
11.8p |
+6 |
+8 |
| Basic EPS |
11.6p |
10.9p |
+6 |
+7 |
| |
|
|
|
|
| Dividends per share |
4.0p |
3.8p |
+5 |
n/a |
# Constant currency growth excludes the impact of exchange rate movements during the period
* Underlying profit from operations, underlying profit before tax and underlying earnings per share exclude brand intangibles amortisation, restructuring costs, non-trading items and the impact of fair value accounting under IAS 39. A full reconciliation between underlying and reported measures is included within the segmental analysis on pages 17 to 18 of the full 2005 Interim Results press release
.
DOWNLOAD THE FULL 2005 INTERIM RESULTS PRESS RELEASE
Presentation
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Forward Looking Statements
This material may be deemed to include forward-looking statements within the meaning of Section 27A of the US Securities Act of 1933 and Section 21E of the US Securities Exchange Act of 1934. These forward-looking statements are only predictions and you should not rely unduly on them. Actual results might differ materially from those projected in any such forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause our or our industry's actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by the forward-looking statements. In evaluating forward-looking statements, which are generally identifiable by use of the words "may", "will", "should", "expect", "anticipate", "estimate", "believe", "intend" or "project" or the negative of these words or other variations on these words or comparable terminology, you should consider various factors including the risks outlined in our Form 20-F filed with the SEC. Although we believe the expectations reflected in forward-looking statements are reasonable we cannot guarantee future results, levels of activity, performance or achievements. This material should be viewed in conjunction with our periodic interim and annual reports and registration statements filed with the Securities and Exchange Commission, copies of which are available from Cadbury Schweppes plc, 25 Berkeley Square, London W1J 6HB, UK.