Cadbury Schweppes reports 13% rise in sales and 12% rise in pre-tax profits; North American acquisitions enhance strong underlying growth.LONDON--(BUSINESS WIRE)--Sept. 4, 1996--Cadbury Schweppes Schweppes may refer to:
See: New York Stock Exchange :CSG CSG - constructive solid geometry ) today announced interim results for the first half year ended June June: see month. 15, 1996.
Full Year 1995 Half Year 1996 Half Year 1995
mps mps % change mps
4,776 Sales 2,293 +13.3 2,025
600 Trading Profit 263 +11.4 236
526 Pre-Tax Profit 231 +12.0 206
Pence Pence
31.3p Earnings Per Share 12.1p + 3.0 11.7p
16.0p Dividend Per Share 5.2p + 6.1 4.9p HIGHLIGHTS - Robust first half performance in both streams. - Significant contribution from Dr Pepper, including market share gain. - Sale of CCSB shareholding agreed for 622.5 mps. - Cadbury UK grows volume, share and profits. - Global expansion in confectionery: - Russia and China factories come on stream - Poland reaches break-even in Year 2 - acquisitions bring leadership in Canada - Outlook: Chairman, Dominic Cadbury, says, "The outlook for the year as a whole is positive with further growth expected for both business streams." CHAIRMAN'S STATEMENT "The Group has made further progress in the first half of 1996. Sales are up 13.3%, pre-tax profit up 12% and an interim dividend of 5.2p, an increase of 6.1%, has been declared. The lower growth rate in earnings per share largely reflects the tax impact of a write down of bottling assets in France. "There has been growth in the base business in both beverages and confectionery. Marketing spend, capital expenditure and trading margin have all increased and our developments in the emerging markets in China, Poland and Russia are coming on stream. "The Dr Pepper/Seven-Up acquisition is fulfilling our expectations. The Dr Pepper brand is outpacing the growth of the US market. 7Up is responding to its new marketing support and volume is growing. "We have reached agreement to sell our 51% interest in Coca-Cola & Schweppes Beverages (CCSB) for 622.5 mps, which will produce a substantial one-off gain in the full year. Importantly, this transaction ensures our access to market for our brands through CCSB for a minimum of fifteen years. "The year end balance sheet will be substantially improved by the Coca-Cola & Schweppes Beverages sale and borrowings reduced. This will give the Group greater flexibility in future developments. "The write down in France reflects the decision to set up in partnership with San Benedetto, build a new plant and close down two existing older ones. Without this mainly non-cash one-off charge, the earnings per share would have been 15.2 pence compared to 12.1 pence reported. "Our confectionery operations in total have produced a good result, with trading profit 3% higher than last year. The acquisitions of Allan Candy and Neilson Cadbury in Canada and most recently Craven Keiller in the UK are performing in line with or ahead of expectations. Our acquisition and marketing strategies around the world are expanding the global distribution and recognition of our chocolate and sugar confectionery ranges and brands. "There have been further changes to the Board with Robert Stack succeeding Richard Stradwick as Director of Human Resources and John Sunderland appointed to succeed David Wellings as Chief Executive who retires this month. David has led the executive team with great distinction and success and, on your behalf, I extend our gratitude and best wishes on his retirement. The outlook for the year as a whole is positive with further growth expected for both business streams." REVIEW OF OPERATIONS BEVERAGES Dr Pepper continues with a powerful performance in the USA, where volume growth was ahead of the market. The relaunch of 7Up, with new packaging design and advertising, took place in line with plan. 7Up volumes were nearly 2% ahead of last year, despite aggressive discounting and promotions by competitors. Strong profit growth in North America has also been aided by the reorganization synergies identified at the time of the Dr Pepper/Seven-Up acquisition. In March, Coca-Cola Enterprises Inc. (CCE) announced its decision to cease the bottling and distribution in certain markets of some of Cadbury Schweppes brands in the USA, mainly A&W root beer, Welch's and Sunkist. The company has completed the re-licensing of these brands to other bottlers and net sales losses are expected to be below the company's initial April estimates. A new and much improved licensing arrangement has been negotiated with CCE for all brands, including Dr Pepper, remaining in the system. Mott's volumes were well up on last year, following the successful launch of Mott's-In-A-Minute shelf stable concentrated juice. In Mexico, poor economic conditions, heavy cost inflation and its impact on pricing caused volume and hence profits to fall. The acquisition of Rello did not fully compensate for the profit shortfall. With continued investment in marketing and promotional activities, CCSB drove up volume by 7% and increased market shares, notably in the Grocery segment, where own label shares fell. Higher marketing and indirect costs leave trading profit 5% down compared with last year. Before charging French restructuring costs, continental Europe recorded strong growth in both profits and margins. Dr Pepper was launched in Russia, Belgium and France. The poor summer weather affected volumes in Australia with the exception of Cottee's cordials which enjoyed good growth. Dr Pepper was launched in the Sydney test market. Volumes were well up for most of the company's Asian bottlers, resulting in a strong profit increase. South Africa performed strongly in most areas of its business - volumes, margins, marketing, profit and share of carbonates increased substantially. CONFECTIONERY In the UK, Cadbury and Trebor Bassett grew both volume and market share. Cadbury profit gains were offset by Trebor Bassett, where sales growth was biased towards multiple grocers, at the expense of margin, and which bore restructuring charges associated with the acquisition of Craven Keiller. Successes in the UK included new product launches such as Wispa Gold and the relaunch of Bassett's Liquorice Allsorts. Strong volume increases were achieved across Europe and particularly in France, Germany and Poland. Profit in Europe was helped by the break-even position achieved in Poland in only its second year of full production. Profit was reduced, however, by 7 mps start up losses from the company's developments in Russia. Following the acquisitions of Allan Candy and Neilson Cadbury, Canadian profits made a significant contribution in the Americas. Volume increases in Argentina from higher exports and new chocolate product launches were largely offset by lower domestic sales caused by the ongoing recession. Sales growth was achieved in Australia, Malaysia and Singapore from new product launches in both chocolate and sugar. Strong profit and margin increases were achieved in Australia. Trading in New Zealand was more difficult, however, and both volumes and margins declined in the period. The greenfield development in China continues on plan. Sales volume and profit grew strongly in South Africa, in a buoyant market. Successful new product launches in both chocolate and sugar made a significant contribution. Confectionery volume grew in India, and strong growth was achieved in Egypt and Pakistan. INTERIM DIVIDEND The interim dividend of 5.2 pence per ordinary share will be paid on November 22, 1996 to Ordinary Shareholders on the register at close of business on September 24, 1996. A share dividend alternative will be available. The results will be published in newspapers from September 5, 1996 onwards. Copies of the full statement will be sent to all shareholders and further copies will be available from the Company Secretary, Cadbury Schweppes plc, 25 Berkeley Square, London W1X 6HT, telephone 011-44-171-409-1313. Cadbury Schweppes plc is a major global company in beverages and confectionery whose brands and products are consumed in over 190 countries around the world. Cadbury Schweppes ADRs are traded on the New York Stock Exchange. One ADR equals four ordinary shares. Note to Editors: 1. The following schedules are attached: Group Profit and Loss Account Movements in Shareholders Funds Group Balance Sheet Group Cash Flow Statement Analysis by Region and Stream 2. Notes to the Accounts GROUP PROFIT AND LOSS ACCOUNT MOVEMENTS IN SHAREHOLDERS FUNDS FOR THE 24 WEEKS ENDED JUNE 15, 1996
Year Half Year
(unaudited)
1995 1996 1995
mps mps mps
4,776 Sales 2,293 2,025
600 Trading Profit 263 236
28 Share of profits of associated 17 11
undertakings
628 Operating Profit 280 247 (1) Gain/Loss re: properties - - 15 Profit on sale of investments - - (116) Net interest (49) (41) 526 Profit before Taxation 231 206 (158) Taxation (77) (66) (59) Minority interests (32) (27) (9) Preference dividends (2) (5)
300 Profit attributable to Ordinary 120 108
Shareholders
(48) Interim Dividend on Ordinary Shares (53) (48)
(111) Final Dividend on Ordinary Shares - -
141 Profit retained 67 60 958 Average number of shares 994 924
Earnings per Ordinary Share
31.3p -FRS 3 basis 12.1p 11.7p
29.5p -IIMR basis 12.1p 11.7p
16.0p Dividend per Ordinary Share 5.2p 4.9p
mps mps mps
1,499 Shareholders funds at beginning 1,316 1,499
of period
Recognized gains and losses
300 - profit attributable to Ordinary 120 108
Shareholders
(10) - currency translation differences (8) (38)
(8) - property revaluation - -
Other movements
(159) - dividends to Ordinary Shareholders (53) (48)
412 - new share capital subscribed 19 397
(71) - redemption of Preference Shares - -
(645) - goodwill written off (90) (587)
(2) - other items - -
1,316 Shareholders funds at end of period 1,304 1,331 GROUP BALANCE SHEET AT JUNE 15, 1996
Half-Year
Year (unaudited)
1995 1996 1995
mps mps mps
Fixed Assets
1,689 Intangible assets 1,694 1,631
1,432 Tangible assets 1,447 1,355
60 Investments 71 56
3,181 3,212 3,042
Working Capital
435 Stock 528 493
745 Debtors 855 789
(1,002) Creditors (1,006) (923)
178 377 359
Other Liabilities
(1,344) Net borrowings (1,617) (1,414)
Tax, dividends & other
(328) liabilities (275) (267)
_____ _____ _____
1,687 1,697 1,720
Capital and Reserves
Equity
248 Share capital 249 247
981 Reserves 968 926
Non-equity
- Share capital - -
87 Reserves 87 158
1,316 Shareholders' Funds 1,304 1,331
Minority interests
121 Equity 141 149
250 Non-equity 252 240
1,687 1,697 1,720
GROUP CASH FLOW STATEMENT
FOR THE 24 WEEKS ENDED JUNE 15, 1996
Half Year
Year (unaudited)
1995 1996 1995
mps mps mps
Operating Activities
600 Trading Profit 263 236
Non cash items
166 - depreciation 78 72
32 - other 39 21
(16) Changes in working capital (203) (174)
782 177 155
Other Items (Net)
(101) Interest (23) (49)
(111) Taxation (45) (38)
(142) Dividends (144) (63)
Investment Activities
(237) Purchase of tangible fixed assets (113) (90)
10 Other fixed assets movements (net) 5 2
23 Short term investments (net) 6 9
26 Disposals - -
(1,199) Acquisitions and restructuring costs (135)(1,103)
(949) Net Cash Outflow before Financing (272)(1,177)
Financing
414 Shares issued 15 397
(65) Redemption of preference shares - -
245 Preferred Securities issued - 240
117 Long term debt (87) (343)
(14) Finance leases 4 -
21 Short term borrowings - 938
718 Net Cash Inflow from Financing (68) 1,232
(Decrease)/Increase in Cash and
(231) Cash Equivalents (340) 55
SALES, TRADING PROFIT, OPERATING ASSETS & TRADING MARGIN BY REGION AND STREAM
Half Year
1996 Total United Europe Americas Pacific Africa
Kingdom Rim &Others
mps mps mps mps mps mps
SALES
Beverages 1,324 411 202 565 107 39
Confectionery 969 400 199 110 177 83
2,293 811 401 675 284 122
TRADING PROFIT(a)
Beverages 198 47 15 122 7 7
Confectionery 105 44 11 15 27 8
303 91 26 137 34 15
OPERATING ASSETS
Beverages 584 289 105 82 86 22
Confectionery 1,151 433 260 114 232 112
1,735 722 365 196 318 134
TRADING MARGIN(%)(a)
Beverages 15.0 11.4 7.3 21.6 7.0 17.8
Confectionery 10.8 11.0 5.2 13.3 15.3 9.9
13.2 11.2 6.4 20.3 12.0 12.3
Half Year
1995 Total United Europe Americas Pacific Africa
Kingdom Rim &Others
mps mps mps mps mps mps
SALES
Beverages 1,185 386 204 455 104 36
Confectionery 840 400 171 40 157 72
2,025 786 375 495 261 108
TRADING PROFIT(a)
Beverages 165 50 12 89 7 6
Confectionery 102 46 16 8 25 7
266 96 28 97 32 13
OPERATING ASSETS
Beverages 650 283 169 96 84 18
Confectionery 974 449 197 49 192 87
1,624 732 366 145 276 106
TRADING MARGIN(%)(a)
Beverages 13.9 13.1 5.9 19.6 6.7 17.2
Confectionery 12.2 11.5 9.2 19.9 15.8 9.5
13.1 12.2 7.4 19.6 12.2 12.1
(a) Trading profit analysis excludes restructuring costs - 40 mps in 1996 and 30 mps in 1995. Notes to the Accounts 1. Group Accounts (a) The profit and loss account and cashflow statement for the 1995 year and the two half years cover the 52 weeks from January 1, 1995 to December 30, 1995, the 24 weeks from December 31, 1995 to June 15, 1996 and the 24 weeks from January 1, 1995 to June 17, 1995 respectively. The balance sheets for the 1995 year and the two half years are as at December 30, 1995, June 15, 1996 and June 17, 1995 respectively. (b) The results of overseas subsidiary undertakings are translated into pounds sterling at average exchange rates. The assets and liabilities of overseas subsidiary undertakings are translated into pounds sterling at closing exchange rates. (c) The half year results are unaudited. The full year figures for 1995 included in this report do not comprise statutory accounts for the purpose of Section 240 of the Companies Act 1985 and have been extracted from the Company's published accounts for the 52 weeks ended December 30, 1995, a copy of which has been delivered to the Registrar of Companies and on which an unqualified report has been made by the auditors under Section 235 of the Companies Act 1985. 2. Trading Profit In March 1996 Schweppes France entered into a 50:50 joint venture agreement with San Benedetto, the Italian producer of mineral water and soft drinks, for the manufacture of the companies' products in France. During the 1996 half year the Group provided 35 mps for the restructuring of the existing operations of Schweppes France. Additionally, the 1996 and 1995 half year results and the 1995 full year results include acquisition-related restructuring costs of 5 mps, 30 mps and 49 mps, respectively (see Note 7). All of the acquisition-related and the above French restructuring costs are excluded from the analysis of trading profit on page 7. 3. Taxation
Taxation is made up as follows:
Half Year
Year (Unaudited)
1995 1996 1995
mps mps mps
80 UK 27 30
68 Overseas 45 33
10 Associates 5 3
158 77 66
The French restructuring charges (see Note 2) include 24 mps of asset write downs which do not involve any cash outflow and for which no tax relief is available. 4. Minority Interests Profits attributable to minority interests comprise:
Half-Year
Year (Unaudited)
1995 1996 1995
mps mps mps
43 Equity Minority Interests 21 23
16 Non-Equity minority interests 11 4
59 32 27
The non-equity minority interests represent the dividend payable to third parties on Preferred Securities of a subsidiary undertaking. 5. Earnings per Ordinary Share
Earnings per Ordinary Share ('EPS') for the half year are calculated
on the weighted average of 993.8 million shares
(1995: 924.3 million).
6. Net Borrowings Net borrowings are made up as follows:
Half Year
Year (Unaudited)
1995 1996 1995
mps mps mps
Cash and cash equivalents
102 -cash and short term investments 148 214
(312) -short term borrowings (710) (1,028)
(210) (562) (814)
27 Other short term investments 22 42
(297) Other short term borrowings (90) (54)
(864) Long term borrowings (987) (588)
(1,344) (1,617) (1,414)
At June 15, 1996, the Group had 866 mps of undrawn un·draw tr.v. un·drew , un·drawn , un·draw·ing, un·draws To draw to one side, as a curtain. Adj. 1. undrawn - not represented in a drawing undelineated - not represented accurately or precisely borrowing facilities expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in 1997 (217 mps) and 1998 (649 mps). 7. Acquisitions On January January: see month. 5, 1996, the Group acquired the assets of Neilson Neil·son , William Allan 1869-1946. British-born American scholar and lexicographer noted for his editions of Shakespeare (1906 and 1942) and as the editor in chief of Webster's Second International Dictionary (1934). Cadbury Cadbury may refer to:
On May 17, 1996, the Group's UK sugar confectionery company, Trebor Trebor may refer to:
The consideration payable in respect of these acquisitions was 131 mps. The net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired were 41 mps and goodwill written off to reserves in the period was 90 mps. The acquisitions contributed 35 mps of turnover and a net trading loss of 6 mps (reflecting restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). costs and the seasonal nature of the businesses) to the 1996 half year results. On March 2, 1995 the Group acquired control of Dr Pepper/Seven-Up Companies, Inc., a beverage company based in Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. . Compared to the 1995 half year results, the additional period of trading from this and other 1995 acquisitions contributed 115 mps of turnover and 27 mps of trading profits Trading profit The profit earned on short-term trades of securities held for less than one year, subject to tax at normal income tax rates. trading profit to the 1996 half year results. 8. Post Balance Sheet Event On August 9, 1996, the Group agreed to the sale of its 51 percent interest in Coca-Cola Coca-Cola soft drink found throughout the world. [Trademarks:Crowley Trade, 115] See : Ubiquity & Schweppes Beverages Limited (CCSB CCSB Center for Cancer Systems Biology (Boston, MA) CCSB Canadian Convention of Southern Baptists CCSB Coca-Cola Schweppes Beverages CCSB Constant Contact Side Bearing (freight stock) ). The Group will receive a total of 622.5 mps, made up of a minimum of 100 mps in dividends from CCSB and 25 mps in related tax credits, and interest bearing loan notes of up to 177.5 mps maturing six months after completion and a further 320 mps maturing in January 1998. Completion is subject to regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approvals. CCSB contributed turnover of 399 mps, operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of 53 mps and profit attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to Ordinary Shareholders of 17 mps to the Group's Profit and Loss Account for the half year 1996. CONTACT: Cadbury Schweppes Cadbury Schweppes plc is a confectionery and beverage company with its headquarters in Berkeley Square, London, England, UK. Cadbury Schweppes is currently the only major international confectionery manufacturer to produce Fairtrade or organic products, which it sells through its David Kappler Group Finance Director Mike Mason Mike Mason (born 1985-02-28 in Rocky Mount, North Carolina) is an American football wide receiver who currently plays for the Cleveland Browns of the National Football League. He was signed as an undrafted free agent after completing his career at Tennessee State. Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. Dora DORA Directory of Rare Analyses Clinical chemisty A reference book published by the Am Chemical Soc that catalogs rarely ordered clinical tests and provides details on the labs performing them Criteria for inclusion in DORA Test of interest is not performed by McCabe Group Public Relations public relations, activities and policies used to create public interest in a person, idea, product, institution, or business establishment. By its nature, public relations is devoted to serving particular interests by presenting them to the public in the most Manager 011-44-171-409-1313 or Gavin Gavin is a common given name in Ireland, England, Scotland, and Wales. It is the late medieval form of the name Gawain, which in turn is believed to have originated from the Welsh name Gwalchgwn, meaning "white hawk. Anderson Anderson, river, Canada Anderson, river, c.465 mi (750 km) long, rising in several lakes in N central Northwest Territories, Canada. It meanders north and west before receiving the Carnwath River and flowing north to Liverpool Bay, an arm of the Arctic & Company Cameron Cam·er·on , Mount A peak, 4,342.6 m (14,238 ft) high, in the Rocky Mountains of central Colorado. King 212-373-0200 |
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