Interim results, six months ended 31 December 2018
31 January 2019
|
Delivering our strategy through strong consistent
performance
|
Ivan Menezes, Chief Executive, commenting on the results
said:
|
Summary financial information
|
|
|
F19 H1
|
F18 H1
|
Organicgrowth%
|
Reported growth%
|
||||
Volume
|
EUm
|
130.5
|
|
126.4
|
|
4
|
|
3
|
|
Net
sales
|
£
million
|
6,908
|
|
6,530
|
|
7
|
|
6
|
|
Marketing
|
£
million
|
1,054
|
|
968
|
|
9
|
|
9
|
|
Operating
profit before exceptional items
|
£
million
|
2,451
|
|
2,190
|
|
12
|
|
12
|
|
Exceptional
operating items(i)
|
£
million
|
(21
|
)
|
-
|
|
|
|
||
Operating
profit
|
£
million
|
2,430
|
|
2,190
|
|
|
11
|
|
|
Share
of associate and joint venture profit after tax
|
£
million
|
179
|
|
168
|
|
|
7
|
|
|
Exceptional
non-operating gain(i)
|
£
million
|
146
|
|
-
|
|
|
|
||
Net
finance charges
|
£
million
|
(128
|
)
|
(154
|
)
|
|
|
||
Exceptional
taxation (charge)/credit(i)
|
£
million
|
(30
|
)
|
360
|
|
|
|
||
Tax
rate including exceptional items
|
%
|
21.3
|
|
3.5
|
|
|
509
|
|
|
Tax
rate before exceptional items
|
%
|
21.2
|
|
19.8
|
|
|
7
|
|
|
Profit
attributable to parent company's shareholders
|
£
million
|
1,976
|
|
2,058
|
|
|
(4
|
)
|
|
Basic
earnings per share
|
pence
|
80.9
|
|
82.2
|
|
|
(2
|
)
|
|
Earnings
per share before exceptional items
|
pence
|
77.0
|
|
67.8
|
|
|
14
|
|
|
Interim
dividend
|
pence
|
26.1
|
|
24.9
|
|
|
5
|
|
Net sales (£ million)
|
Net sales
|
£ million
|
|
F18 H1
|
6,530
|
|
Exchange(i)
|
(91
|
)
|
Acquisitions and disposals
|
(7
|
)
|
Volume
|
224
|
|
Price/mix
|
252
|
|
F19 H1
|
6,908
|
|
Operating profit (£ million)
|
Operating profit
|
£ million
|
|
F18 H1
|
2,190
|
|
Exceptional operating items
|
(21
|
)
|
Exchange
|
-
|
|
Acquisitions and disposals
|
(3
|
)
|
Organic movement
|
264
|
|
F19 H1
|
2,430
|
|
Operating margin (%)
|
Operating margin
|
ppt
|
|
F18 H1
|
33.5
|
|
Exceptional operating items
|
(0.30
|
)
|
Exchange
|
0.47
|
|
Acquisitions and disposals
|
(0.05
|
)
|
Gross
margin
|
0.50
|
|
Marketing
|
(0.26
|
)
|
Other operating expenses
|
1.28
|
|
F19 H1
|
35.2
|
|
Basic earnings per share (pence)
|
Basic earnings per share
|
pence
|
|
F18 H1
|
82.2
|
|
Exceptional items after tax
|
(10.5
|
)
|
Exchange on operating profit
|
0.1
|
|
Acquisitions and disposals
|
(0.1
|
)
|
Organic
operating profit growth(i)
|
10.4
|
|
Associates and joint ventures
|
0.4
|
|
Net finance charges
|
2.2
|
|
Tax
|
(4.0
|
)
|
Share buyback
|
1.1
|
|
Non-controlling interests
|
(0.9
|
)
|
F19 H1
|
80.9
|
|
Free cash flow (£ million)
|
Free cash flow
|
£ million
|
|
F18 H1
|
1,029
|
|
Exchange(ii)
|
-
|
|
Operating
profit(iii)
|
283
|
|
Working
capital(iv)
|
(126
|
)
|
Capex
|
(57
|
)
|
Tax
|
179
|
|
Interest
|
23
|
|
Other(v)
|
15
|
|
F19 H1
|
1,346
|
|
Return on average invested capital (%)(i)
|
Return on average invested capital
|
ppt
|
|
F18 H1
|
16.5
|
|
Exchange
|
0.19
|
|
Acquisitions and disposals
|
(0.16
|
)
|
Organic operating profit growth
|
2.38
|
|
Associates and joint ventures
|
(0.03
|
)
|
Tax
|
(0.68
|
)
|
Other
|
(0.35
|
)
|
F19 H1
|
17.8
|
|
Reported growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North
America
|
2
|
|
0.4
|
|
8
|
|
173
|
|
13
|
|
45
|
|
7
|
|
74
|
|
Europe
and Turkey
|
2
|
|
0.5
|
|
2
|
|
34
|
|
6
|
|
14
|
|
3
|
|
15
|
|
Africa
|
1
|
|
0.2
|
|
6
|
|
47
|
|
10
|
|
8
|
|
28
|
|
33
|
|
Latin
America and Caribbean
|
(1
|
)
|
(0.1
|
)
|
4
|
|
23
|
|
1
|
|
1
|
|
17
|
|
36
|
|
Asia
Pacific
|
7
|
|
3.1
|
|
8
|
|
100
|
|
11
|
|
20
|
|
29
|
|
93
|
|
Corporate
|
-
|
|
-
|
|
4
|
|
1
|
|
(50
|
)
|
(2
|
)
|
11
|
|
10
|
|
Diageo
|
3
|
|
4.1
|
|
6
|
|
378
|
|
9
|
|
86
|
|
12
|
|
261
|
|
Organic growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North America
|
3
|
|
0.6
|
|
6
|
|
130
|
|
10
|
|
36
|
|
4
|
|
36
|
|
Europe and Turkey
|
1
|
|
0.3
|
|
5
|
|
83
|
|
9
|
|
21
|
|
5
|
|
31
|
|
Africa
|
1
|
|
0.2
|
|
6
|
|
49
|
|
6
|
|
5
|
|
30
|
|
35
|
|
Latin America and Caribbean
|
(1
|
)
|
(0.1
|
)
|
9
|
|
57
|
|
6
|
|
6
|
|
21
|
|
44
|
|
Asia Pacific
|
7
|
|
3.4
|
|
13
|
|
156
|
|
13
|
|
24
|
|
35
|
|
106
|
|
Corporate
|
-
|
|
-
|
|
4
|
|
1
|
|
(50
|
)
|
(2
|
)
|
13
|
|
12
|
|
Diageo
|
4
|
|
4.4
|
|
7
|
|
476
|
|
9
|
|
90
|
|
12
|
|
264
|
|
Notes to the business and financial review
|
North America
|
Key financials £ million:
|
|||||||||||||||
|
|
F18 H1
|
FX
|
Reclassifi-cation(i)
|
Acquisitionsanddisposals
|
Organic movement
|
F19 H1
|
Reported movement%
|
|||||||
Net
sales
|
|
2,183
|
|
44
|
|
1
|
|
(2
|
)
|
130
|
|
2,356
|
|
8
|
|
Marketing
|
|
338
|
|
10
|
|
(1
|
)
|
-
|
|
36
|
|
383
|
|
13
|
|
Operating
profit
|
|
1,027
|
|
39
|
|
1
|
|
(2
|
)
|
36
|
|
1,101
|
|
7
|
|
Markets:
|
|
|
|
|
|
Global
giants, local stars and reserve(i):
|
||||||||||
|
Organicvolumemovement
|
Reportedvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|
|
Organicvolumemovement(ii)
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
North
America
|
3
|
|
2
|
|
6
|
|
8
|
|
|
Crown
Royal
|
5
|
|
4
|
|
7
|
|
|
|
|
|
|
|
Smirnoff
|
-
|
|
(1
|
)
|
-
|
|
||||
US
Spirits
|
1
|
|
-
|
|
5
|
|
7
|
|
|
Captain
Morgan
|
(6
|
)
|
(7
|
)
|
(6
|
)
|
DBC
USA
|
10
|
|
10
|
|
13
|
|
15
|
|
|
Johnnie
Walker
|
9
|
|
10
|
|
12
|
|
Canada
|
5
|
|
5
|
|
5
|
|
3
|
|
|
Ketel
One(iii)
|
19
|
|
22
|
|
25
|
|
|
|
|
|
|
|
Cîroc
vodka
|
(11
|
)
|
(14
|
)
|
(11
|
)
|
||||
Spirits
|
2
|
|
1
|
|
5
|
|
7
|
|
|
Baileys
|
3
|
|
4
|
|
5
|
|
Beer
|
(1
|
)
|
(1
|
)
|
1
|
|
3
|
|
|
Guinness
|
(1
|
)
|
2
|
|
4
|
|
Ready to drink
|
23
|
|
23
|
|
22
|
|
24
|
|
|
Tanqueray
|
(2
|
)
|
(5
|
)
|
(1
|
)
|
|
|
|
|
|
|
Don
Julio
|
22
|
|
28
|
|
31
|
|
||||
|
|
|
|
|
|
Bulleit
|
10
|
|
7
|
|
10
|
|
||||
|
|
|
|
|
|
Buchanan's
|
12
|
|
7
|
|
9
|
|
Europe and Turkey
|
|
Key financials £ million:
|
||||||||||||||
|
F18 H1
|
FX
|
Reclassifi-cation(i)
|
Acquisitionsanddisposals
|
Organic movement
|
F19 H1
|
Reported movement%
|
|||||||
Net
sales
|
1,599
|
|
(60
|
)
|
12
|
|
(1
|
)
|
83
|
|
1,633
|
|
2
|
|
Marketing
|
246
|
|
(7
|
)
|
-
|
|
-
|
|
21
|
|
260
|
|
6
|
|
Operating
profit
|
599
|
|
(25
|
)
|
9
|
|
-
|
|
31
|
|
614
|
|
3
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organicvolumemovement
|
Reportedvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|
|
Organicvolumemovement(ii)
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Europe
and Turkey
|
|
|
|
|
|
Guinness
|
3
|
|
3
|
|
3
|
|
||||
1
|
|
2
|
|
5
|
|
2
|
|
|
Johnnie
Walker
|
(2
|
)
|
3
|
|
6
|
|
|
|
|
|
|
|
|
Smirnoff
|
-
|
|
1
|
|
1
|
|
||||
Europe
|
4
|
|
4
|
|
5
|
|
4
|
|
|
Baileys
|
(3
|
)
|
-
|
|
(1
|
)
|
Turkey
|
(11
|
)
|
(12
|
)
|
10
|
|
(25
|
)
|
|
Yenì
Raki
|
(17
|
)
|
5
|
|
(29
|
)
|
|
|
|
|
|
|
Captain
Morgan
|
2
|
|
(1
|
)
|
(3
|
)
|
||||
Spirits
|
1
|
|
1
|
|
4
|
|
-
|
|
|
JeB
|
(9
|
)
|
(9
|
)
|
(9
|
)
|
Beer
|
5
|
|
5
|
|
4
|
|
4
|
|
|
Tanqueray
|
25
|
|
34
|
|
33
|
|
Ready
to drink
|
24
|
|
23
|
|
28
|
|
27
|
|
|
|
|
|
|
Africa
|
|
Key financials £ million:
|
||||||||||||
|
F18 H1
|
FX
|
Acquisitionsanddisposals
|
Organic movement
|
F19 H1
|
Reported movement%
|
||||||
Net
sales
|
774
|
|
(1
|
)
|
(1
|
)
|
49
|
|
821
|
|
6
|
|
Marketing
|
83
|
|
3
|
|
-
|
|
5
|
|
91
|
|
10
|
|
Operating
profit
|
120
|
|
(2
|
)
|
-
|
|
35
|
|
153
|
|
28
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organicvolumemovement
|
Reportedvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|
|
Organicvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Africa
|
1
|
|
1
|
|
6
|
|
6
|
|
|
Guinness
|
3
|
|
5
|
|
5
|
|
|
|
|
|
|
|
Johnnie
Walker
|
(8
|
)
|
(1
|
)
|
(1
|
)
|
||||
East
Africa
|
13
|
|
13
|
|
13
|
|
16
|
|
|
Smirnoff
|
2
|
|
14
|
|
12
|
|
Africa
Regional Markets(ii)
|
(4
|
)
|
4
|
|
6
|
|
10
|
|
|
|
|
|
|
|||
Nigeria
|
(13
|
)
|
(13
|
)
|
(4
|
)
|
(3
|
)
|
|
Other
beer:
|
||||||
South
Africa(ii)
|
-
|
|
(10
|
)
|
4
|
|
(8
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
Malta
Guinness
|
4
|
|
10
|
|
7
|
|
||||
Spirits
|
5
|
|
5
|
|
11
|
|
9
|
|
|
Tusker
|
(8
|
)
|
(3
|
)
|
(1
|
)
|
Beer
|
1
|
|
1
|
|
5
|
|
7
|
|
|
Senator
|
20
|
|
23
|
|
27
|
|
Ready
to drink
|
(1
|
)
|
(1
|
)
|
7
|
|
6
|
|
|
Serengeti
|
59
|
|
65
|
|
65
|
|
Latin America and Caribbean
|
|
Key financials £ million:
|
||||||||||||||
|
F18 H1
|
FX
|
Reclassifi-cation(i)
|
Acquisitionsanddisposals
|
Organic movement
|
F19 H1
|
Reported movement%
|
|||||||
Net
sales
|
649
|
|
(35
|
)
|
-
|
|
1
|
|
57
|
|
672
|
|
4
|
|
Marketing
|
109
|
|
(6
|
)
|
1
|
|
-
|
|
6
|
|
110
|
|
1
|
|
Operating
profit
|
218
|
|
(7
|
)
|
(1
|
)
|
-
|
|
44
|
|
254
|
|
17
|
|
Markets:
|
|
|
|
|
|
Global giants and local stars(i):
|
||||||||||
|
Organicvolumemovement
|
Reportedvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|
|
Organicvolumemovement(ii)
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Latin
America and Caribbean
|
|
|
|
|
|
Johnnie
Walker
|
5
|
|
8
|
|
3
|
|
||||
(1
|
)
|
(1
|
)
|
9
|
|
4
|
|
|
Buchanan's
|
2
|
|
8
|
|
4
|
|
|
|
|
|
|
|
|
Smirnoff
|
6
|
|
13
|
|
-
|
|
||||
PUB
|
(4
|
)
|
(4
|
)
|
-
|
|
(13
|
)
|
|
Old
Parr
|
3
|
|
5
|
|
2
|
|
Mexico
|
4
|
|
4
|
|
9
|
|
7
|
|
|
Baileys
|
2
|
|
9
|
|
9
|
|
CCA
|
17
|
|
17
|
|
22
|
|
27
|
|
|
Ypióca
|
(10
|
)
|
1
|
|
(15
|
)
|
Andean
|
(29
|
)
|
(29
|
)
|
20
|
|
9
|
|
|
Black
& White
|
11
|
|
7
|
|
(2
|
)
|
PEBAC
|
13
|
|
13
|
|
2
|
|
(1
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Spirits
|
(1
|
)
|
-
|
|
10
|
|
5
|
|
|
|
|
|
|
|||
Beer
|
4
|
|
4
|
|
(11
|
)
|
(13
|
)
|
|
|
|
|
|
|||
Ready
to drink
|
(8
|
)
|
(8
|
)
|
7
|
|
(2
|
)
|
|
|
|
|
|
Asia Pacific
|
Key financials £ million:
|
|||||||||||||
|
F18 H1
|
FX
|
Reclassifi-cation(i)
|
Acquisitionsanddisposals
|
Organic movement
|
F19 H1
|
Reported movement%
|
||||||
Net
sales
|
1,298
|
(39)
|
(13
|
)
|
(4
|
)
|
156
|
|
1,398
|
|
8
|
|
|
Marketing
|
188
|
(4)
|
-
|
|
-
|
|
24
|
|
208
|
|
11
|
|
|
Operating
profit
|
316
|
(3
|
)
|
(9
|
)
|
(1
|
)
|
106
|
|
409
|
|
29
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(ii):
|
||||||||||
|
Organicvolumemovement(i)
|
Reportedvolumemovement
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|
|
Organicvolumemovement(iii)
|
Organicnet
salesmovement
|
Reportednet
salesmovement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Asia
Pacific
|
7
|
|
7
|
|
13
|
|
8
|
|
|
Johnnie
Walker
|
15
|
|
20
|
|
16
|
|
|
|
|
|
|
|
McDowell's
|
8
|
|
11
|
|
2
|
|
||||
India
|
7
|
|
6
|
|
12
|
|
3
|
|
|
Windsor
|
(8
|
)
|
(20
|
)
|
(18
|
)
|
Greater
China
|
7
|
|
4
|
|
20
|
|
19
|
|
|
Smirnoff
|
-
|
|
8
|
|
5
|
|
Australia
|
6
|
|
6
|
|
8
|
|
2
|
|
|
Guinness
|
3
|
|
6
|
|
3
|
|
South
East Asia
|
16
|
|
16
|
|
16
|
|
18
|
|
|
Bundaberg
|
2
|
|
1
|
|
(4
|
)
|
North
Asia
|
3
|
|
3
|
|
(7
|
)
|
(5
|
)
|
|
Shui
Jing Fang(iv)
|
13
|
|
22
|
|
20
|
|
Travel
Retail Asia and Middle East
|
15
|
|
4
|
|
24
|
|
12
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Spirits
|
7
|
|
7
|
|
13
|
|
8
|
|
|
|
|
|
|
|||
Beer
|
2
|
|
2
|
|
6
|
|
3
|
|
|
|
|
|
|
|||
Ready
to drink
|
5
|
|
5
|
|
11
|
|
8
|
|
|
|
|
|
|
Key categories:
|
||||||
|
Organicvolumemovement(iii)%
|
Organicnet
salesmovement%
|
Reportednet
salesmovement%
|
|||
Spirits(i)
|
4
|
|
7
|
|
5
|
|
Scotch
|
4
|
|
7
|
|
6
|
|
Vodka(ii)(iv)
|
2
|
|
3
|
|
2
|
|
US
whiskey
|
2
|
|
4
|
|
6
|
|
Canadian
whisky
|
5
|
|
5
|
|
6
|
|
Rum(ii)
|
(4
|
)
|
(3
|
)
|
(5
|
)
|
Indian-Made Foreign
Liquor (IMFL) whisky
|
9
|
|
11
|
|
2
|
|
Liqueurs
|
-
|
|
3
|
|
2
|
|
Gin(ii)
|
25
|
|
28
|
|
29
|
|
Tequila
|
18
|
|
29
|
|
36
|
|
Beer
|
2
|
|
4
|
|
5
|
|
Ready to drink
|
9
|
|
16
|
|
15
|
|
Global giants, local stars and reserve(i):
|
||||||
|
Organicvolumemovement(ii)%
|
Organicnet
salesmovement%
|
Reportednet
salesmovement%
|
|||
Global giants
|
|
|
|
|||
Johnnie
Walker
|
5
|
|
10
|
|
9
|
|
Smirnoff
|
1
|
|
2
|
|
2
|
|
Baileys
|
-
|
|
3
|
|
3
|
|
Captain
Morgan
|
(2
|
)
|
(4
|
)
|
(3
|
)
|
Tanqueray
|
20
|
|
21
|
|
22
|
|
Guinness
|
3
|
|
4
|
|
4
|
|
Local stars
|
|
|
|
|||
Crown
Royal
|
5
|
|
5
|
|
7
|
|
Yenì
Raki
|
(17
|
)
|
5
|
|
(29
|
)
|
Buchanan's
|
5
|
|
7
|
|
6
|
|
JeB
|
(11
|
)
|
(10
|
)
|
(10
|
)
|
Windsor
|
(8
|
)
|
(20
|
)
|
(18
|
)
|
Old
Parr
|
5
|
|
6
|
|
3
|
|
Bundaberg
|
2
|
|
1
|
|
(4
|
)
|
Black
& White
|
11
|
|
16
|
|
7
|
|
Ypióca
|
(10
|
)
|
1
|
|
(15
|
)
|
McDowell's
|
8
|
|
10
|
|
2
|
|
Shui
Jing Fang(iii)
|
13
|
|
22
|
|
20
|
|
Reserve
|
|
|
|
|||
Scotch
malts
|
4
|
|
5
|
|
8
|
|
Cîroc
vodka
|
(9
|
)
|
(12
|
)
|
(9
|
)
|
Ketel
One(iv)
|
18
|
|
21
|
|
24
|
|
Don
Julio
|
13
|
|
26
|
|
27
|
|
Bulleit
|
8
|
|
6
|
|
8
|
|
SUMMARY INCOME STATEMENT
|
|
31
December 2017
|
Exchange(a)
|
Acquisitions and
disposals(b)
|
Organic
movement(i)
|
31 December 2018
|
|||||
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
|||||
Sales
|
9,934
|
|
(314
|
)
|
(13
|
)
|
756
|
|
10,363
|
|
Excise
duties
|
(3,404
|
)
|
223
|
|
6
|
|
(280
|
)
|
(3,455
|
)
|
Net
sales
|
6,530
|
|
(91
|
)
|
(7
|
)
|
476
|
|
6,908
|
|
Cost of
sales
|
(2,439
|
)
|
68
|
|
5
|
|
(142
|
)
|
(2,508
|
)
|
Gross
profit
|
4,091
|
|
(23
|
)
|
(2
|
)
|
334
|
|
4,400
|
|
Marketing
|
(968
|
)
|
4
|
|
-
|
|
(90
|
)
|
(1,054
|
)
|
Other
operating expenses
|
(933
|
)
|
19
|
|
(1
|
)
|
20
|
|
(895
|
)
|
Operating
profit before exceptional items
|
2,190
|
|
-
|
|
(3
|
)
|
264
|
|
2,451
|
|
Exceptional
operating items (c)
|
-
|
|
|
|
|
(21
|
)
|
|||
Operating
profit
|
2,190
|
|
|
|
|
2,430
|
|
|||
Non-operating
items (c)
|
-
|
|
|
|
|
146
|
|
|||
Net
finance charges
|
(154
|
)
|
|
|
|
(128
|
)
|
|||
Share
of after tax results of associates and joint ventures
|
168
|
|
|
|
|
179
|
|
|||
Profit
before taxation
|
2,204
|
|
|
|
|
2,627
|
|
|||
Taxation
(d)
|
(77
|
)
|
|
|
|
(560
|
)
|
|||
Profit
for the period
|
2,127
|
|
|
|
|
2,067
|
|
|
Gains/(losses)
|
|
|
£ million
|
|
Translation
impact
|
(27)
|
|
Transaction
impact
|
27
|
|
Operating profit before exceptional items
|
-
|
|
Net
finance charges - translation impact
|
(2)
|
|
Impact
of IAS 21 and IFRS 9 on net other finance charges
|
(3)
|
|
Net
finance charges
|
(5)
|
|
Associates
- translation impact
|
-
|
|
Profit before exceptional items and taxation
|
(5)
|
|
Six months ended 31 December 2018
|
Six months ended 31 December 2017
|
||
Exchange
rates
|
|
|
||
Translation
£1 =
|
$1.29
|
|
$1.32
|
|
Transaction £1
=
|
$1.31
|
|
$1.41
|
|
Translation
£1 =
|
€1.12
|
|
€1.12
|
|
Transaction £1
=
|
€1.13
|
|
€1.17
|
|
MOVEMENT IN NET BORROWINGS AND EQUITY
|
|
2018
|
2017
|
||
|
£
million
|
£
million
|
||
Net
borrowings at 30 June
|
(9,091
|
)
|
(7,892
|
)
|
Free
cash flow (a)
|
1,346
|
|
1,029
|
|
Acquisitions
(b)
|
(32
|
)
|
(561
|
)
|
Sale
of businesses and brands (c)
|
419
|
|
2
|
|
Share
buyback programme
|
(1,275
|
)
|
(742
|
)
|
Proceeds from issue
of share capital
|
1
|
|
1
|
|
Net
sale/(purchase) of own shares for share schemes (d)
|
25
|
|
(28
|
)
|
Dividends paid to
non-controlling interests
|
(76
|
)
|
(61
|
)
|
Rights
issue proceeds from non-controlling interests of subsidiary
company
|
-
|
|
26
|
|
Net
movements in bonds (e)
|
1,754
|
|
188
|
|
Purchase of shares
of non-controlling interests (f)
|
(697
|
)
|
-
|
|
Net
movements in other borrowings (g)
|
220
|
|
911
|
|
Equity
dividends paid
|
(993
|
)
|
(968
|
)
|
Net
increase/(decrease) in cash and cash equivalents
|
692
|
|
(203
|
)
|
Net
increase in bonds and other borrowings
|
(1,974
|
)
|
(1,099
|
)
|
Exchange
differences (h)
|
(32
|
)
|
47
|
|
Other
non-cash items
|
53
|
|
(51
|
)
|
Net
borrowings at 31 December
|
(10,352
|
)
|
(9,198
|
)
|
|
2018
|
2017
|
||
|
£
million
|
£
million
|
||
Equity
at 30 June
|
11,713
|
|
12,028
|
|
Profit
for the period
|
2,067
|
|
2,127
|
|
Exchange
adjustments (a)
|
251
|
|
(428
|
)
|
Remeasurement of
post employment plans net of taxation
|
150
|
|
(86
|
)
|
Purchase of shares
of non-controlling interests (b)
|
(703
|
)
|
-
|
|
Rights
issue proceeds from non-controlling interests of subsidiary company
(c)
|
-
|
|
26
|
|
Dividends to
non-controlling interests
|
(55
|
)
|
(61
|
)
|
Equity
dividends paid
|
(993
|
)
|
(968
|
)
|
Share
buyback programme
|
(1,355
|
)
|
(924
|
)
|
Other
reserve movements
|
58
|
|
(24
|
)
|
Equity
at 31 December
|
11,133
|
|
11,690
|
|
|
|
Six months ended 31 December 2018
|
|
Six
months ended 31 December 2017
|
||
|
Notes
|
£
million
|
|
£
million
|
||
|
|
|
|
|
||
Sales
|
2
|
10,363
|
|
|
9,934
|
|
Excise
duties
|
|
(3,455
|
)
|
|
(3,404
|
)
|
Net
sales
|
2
|
6,908
|
|
|
6,530
|
|
Cost of
sales
|
|
(2,508
|
)
|
|
(2,439
|
)
|
Gross
profit
|
|
4,400
|
|
|
4,091
|
|
Marketing
|
|
(1,054
|
)
|
|
(968
|
)
|
Other
operating expenses
|
|
(916
|
)
|
|
(933
|
)
|
Operating
profit
|
2
|
2,430
|
|
|
2,190
|
|
Non-operating
items
|
3
|
146
|
|
|
-
|
|
Finance
income
|
4
|
181
|
|
|
113
|
|
Finance
charges
|
4
|
(309
|
)
|
|
(267
|
)
|
Share
of after tax results of associates and joint ventures
|
|
179
|
|
|
168
|
|
Profit
before taxation
|
|
2,627
|
|
|
2,204
|
|
Taxation
|
5
|
(560
|
)
|
|
(77
|
)
|
Profit for the period
|
|
2,067
|
|
|
2,127
|
|
|
|
|
|
|
||
Attributable
to:
|
|
|
|
|
||
Equity
shareholders of the parent company
|
|
1,976
|
|
|
2,058
|
|
Non-controlling
interests
|
|
91
|
|
|
69
|
|
|
|
2,067
|
|
|
2,127
|
|
|
|
|
|
|
||
|
|
million
|
|
million
|
||
Weighted
average number of shares
|
|
|
|
|
||
Shares
in issue excluding own shares
|
|
2,442
|
|
2,505
|
||
Dilutive potential
ordinary shares
|
|
10
|
|
12
|
||
|
|
2,452
|
|
2,517
|
||
|
|
|
|
|
||
|
|
pence
|
|
pence
|
||
Basic
earnings per share
|
|
80.9
|
|
|
82.2
|
|
|
|
|
|
|
||
Diluted
earnings per share
|
|
80.6
|
|
|
81.8
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2018
|
|
Six months ended 31 December 2017
|
||
|
|
£ million
|
|
£
million
|
||
Other comprehensive income
|
|
|
|
|
||
Items that will not be recycled subsequently to the income
statement
|
|
|
|
|
||
Net
remeasurement of post employment plans
|
|
|
|
|
||
-
group
|
|
183
|
|
|
(85
|
)
|
-
associates and joint ventures
|
|
1
|
|
|
5
|
|
Tax on
post employment plans
|
|
(34
|
)
|
|
(6
|
)
|
|
|
150
|
|
|
(86
|
)
|
Items that may be recycled subsequently to the income
statement
|
|
|
|
|
||
Exchange
differences on translation of foreign operations
|
|
|
|
|
||
-
group
|
|
265
|
|
|
(492
|
)
|
-
associates and joint ventures
|
|
43
|
|
|
33
|
|
-
non-controlling interests
|
|
42
|
|
|
(54
|
)
|
Net
investment hedges
|
|
(99
|
)
|
|
85
|
|
Tax on
exchange differences - group
|
|
1
|
|
|
11
|
|
Effective portion
of changes in fair value of cash flow hedges
|
|
|
|
|
||
-
hedge of foreign currency debt of the group
|
|
115
|
|
|
(96
|
)
|
-
transaction exposure hedging of the group
|
|
(66
|
)
|
|
53
|
|
-
commodity price risk of the group
|
|
(6
|
)
|
|
1
|
|
-
hedges by associates and joint ventures
|
|
(5
|
)
|
|
4
|
|
-
recycled to income statement - hedge of foreign currency debt of
the group
|
(71
|
)
|
|
49
|
|
|
-
recycled to income statement - transaction exposure hedging of the
group
|
20
|
|
|
15
|
|
|
Tax on
effective portion of changes in fair value of cash flow
hedges
|
|
(2
|
)
|
|
6
|
|
Hyperinflation
adjustment
|
|
(4
|
)
|
|
13
|
|
Tax on
hyperinflation adjustment
|
|
2
|
|
|
(6
|
)
|
|
|
235
|
|
|
(378
|
)
|
Other comprehensive profit/(loss), net of tax, for the
period
|
|
385
|
|
|
(464
|
)
|
Profit
for the period
|
|
2,067
|
|
|
2,127
|
|
Total comprehensive income for the period
|
|
2,452
|
|
|
1,663
|
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
|
||
Equity
shareholders of the parent company
|
|
2,319
|
|
|
1,648
|
|
Non-controlling
interests
|
|
133
|
|
|
15
|
|
Total comprehensive income for the period
|
|
2,452
|
|
|
1,663
|
|
|
|
|
|
|
|
|
|
31 December 2018
|
|
30 June 2018
|
|
31 December 2017
|
||||||||||||
|
Notes
|
|
£ million
|
|
£ million
|
|
£
million
|
|
£
million
|
|
£
million
|
|
£
million
|
||||||
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible
assets
|
|
|
12,555
|
|
|
|
|
12,572
|
|
|
|
|
12,807
|
|
|
|
|||
Property,
plant and equipment
|
|
|
4,238
|
|
|
|
|
4,089
|
|
|
|
|
3,953
|
|
|
|
|||
Biological
assets
|
|
|
26
|
|
|
|
|
23
|
|
|
|
|
21
|
|
|
|
|||
Investments
in associates and joint ventures
|
|
|
3,230
|
|
|
|
|
3,009
|
|
|
|
|
3,053
|
|
|
|
|||
Other
investments
|
|
|
48
|
|
|
|
|
46
|
|
|
|
|
49
|
|
|
|
|||
Other
receivables
|
|
|
59
|
|
|
|
|
46
|
|
|
|
|
56
|
|
|
|
|||
Other
financial assets
|
|
|
281
|
|
|
|
|
182
|
|
|
|
|
184
|
|
|
|
|||
Deferred
tax assets
|
|
|
106
|
|
|
|
|
122
|
|
|
|
|
179
|
|
|
|
|||
Post
employment benefit assets
|
|
|
1,036
|
|
|
|
|
935
|
|
|
|
|
300
|
|
|
|
|||
|
|
|
|
|
21,579
|
|
|
|
|
21,024
|
|
|
|
|
20,602
|
|
|||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Inventories
|
6
|
|
5,276
|
|
|
|
|
5,015
|
|
|
|
|
4,919
|
|
|
|
|||
Trade
and other receivables
|
|
|
3,541
|
|
|
|
|
2,678
|
|
|
|
|
3,431
|
|
|
|
|||
Assets
held for sale
|
|
|
83
|
|
|
|
|
24
|
|
|
|
|
-
|
|
|
|
|||
Corporate tax receivables
|
|
|
12
|
|
|
|
|
65
|
|
|
|
|
107
|
|
|
|
|||
Other
financial assets
|
|
|
12
|
|
|
|
|
35
|
|
|
|
|
123
|
|
|
|
|||
Cash
and cash equivalents
|
7
|
|
1,591
|
|
|
|
|
874
|
|
|
|
|
920
|
|
|
|
|||
|
|
|
|
|
10,515
|
|
|
|
|
8,691
|
|
|
|
|
9,500
|
|
|||
Total assets
|
|
|
|
|
32,094
|
|
|
|
|
29,715
|
|
|
|
|
30,102
|
|
|||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings
and bank overdrafts
|
7
|
|
(1,742
|
)
|
|
|
|
(1,828
|
)
|
|
|
|
(2,378
|
)
|
|
|
|||
Other
financial liabilities
|
|
|
(386
|
)
|
|
|
|
(230
|
)
|
|
|
|
(324
|
)
|
|
|
|||
Trade
and other payables
|
|
|
(4,415
|
)
|
|
|
|
(3,950
|
)
|
|
|
|
(4,142
|
)
|
|
|
|||
Liabilities
held for sale
|
|
|
(32
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|||
Corporate tax payables
|
|
|
(446
|
)
|
|
|
|
(243
|
)
|
|
|
|
(300
|
)
|
|
|
|||
Provisions
|
|
|
(107
|
)
|
|
|
|
(109
|
)
|
|
|
|
(109
|
)
|
|
|
|||
|
|
|
|
|
(7,128
|
)
|
|
|
|
(6,360
|
)
|
|
|
|
(7,253
|
)
|
|||
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings
|
7
|
|
(10,272
|
)
|
|
|
|
(8,074
|
)
|
|
|
|
(7,647
|
)
|
|
|
|||
Other
financial liabilities
|
|
|
(154
|
)
|
|
|
|
(212
|
)
|
|
|
|
(426
|
)
|
|
|
|||
Other
payables
|
|
|
(250
|
)
|
|
|
|
(209
|
)
|
|
|
|
(196
|
)
|
|
|
|||
Provisions
|
|
|
(295
|
)
|
|
|
|
(288
|
)
|
|
|
|
(286
|
)
|
|
|
|||
Deferred
tax liabilities
|
|
|
(2,123
|
)
|
|
|
|
(1,987
|
)
|
|
|
|
(1,786
|
)
|
|
|
|||
Post
employment benefit liabilities
|
|
|
(739
|
)
|
|
|
|
(872
|
)
|
|
|
|
(818
|
)
|
|
|
|||
|
|
|
|
|
(13,833
|
)
|
|
|
|
(11,642
|
)
|
|
|
|
(11,159
|
)
|
|||
Total liabilities
|
|
|
|
|
(20,961
|
)
|
|
|
|
(18,002
|
)
|
|
|
|
(18,412
|
)
|
|||
Net assets
|
|
|
|
|
11,133
|
|
|
|
|
11,713
|
|
|
|
|
11,690
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share
capital
|
|
|
767
|
|
|
|
|
780
|
|
|
|
|
789
|
|
|
|
|||
Share
premium
|
|
|
1,350
|
|
|
|
|
1,349
|
|
|
|
|
1,349
|
|
|
|
|||
Other
reserves
|
|
|
2,341
|
|
|
|
|
2,133
|
|
|
|
|
2,362
|
|
|
|
|||
Retained
earnings
|
|
|
4,908
|
|
|
|
|
5,686
|
|
|
|
|
5,422
|
|
|
|
|||
Equity attributable to equity shareholders of the parent
company
|
|
|
|
|
9,366
|
|
|
|
|
9,948
|
|
|
|
|
9,922
|
|
|||
Non-controlling interests
|
|
|
|
|
1,767
|
|
|
|
|
1,765
|
|
|
|
|
1,768
|
|
|||
Total equity
|
|
|
|
|
11,133
|
|
|
|
|
11,713
|
|
|
|
|
11,690
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings/(deficit)
|
Equityattributableto
parent companyshareholders
|
|
|
|||||||||||
|
Sharecapital
|
Sharepremium
|
Otherreserves
|
Ownshares
|
Otherretained earnings
|
Total
|
Non-controllinginterests
|
Totalequity
|
||||||||||
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
At 30 June 2017
|
797
|
|
1,348
|
|
2,693
|
|
(2,176
|
)
|
7,651
|
|
5,475
|
|
10,313
|
|
1,715
|
|
12,028
|
|
Adoption
of IFRS 15 (note 1)
|
-
|
|
-
|
|
-
|
|
-
|
|
(69
|
)
|
(69
|
)
|
(69
|
)
|
(2
|
)
|
(71
|
)
|
Profit
for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
2,058
|
|
2,058
|
|
2,058
|
|
69
|
|
2,127
|
|
Other
comprehensive income
|
-
|
|
-
|
|
(331
|
)
|
-
|
|
(79
|
)
|
(79
|
)
|
(410
|
)
|
(54
|
)
|
(464
|
)
|
Employee
share schemes
|
-
|
|
-
|
|
-
|
|
(2
|
)
|
(3
|
)
|
(5
|
)
|
(5
|
)
|
-
|
|
(5
|
)
|
Share-based
incentive plans
|
-
|
|
-
|
|
-
|
|
-
|
|
21
|
|
21
|
|
21
|
|
-
|
|
21
|
|
Share-based
incentive plans in respect of associates
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
5
|
|
5
|
|
-
|
|
5
|
|
Tax on
share-based incentive plans
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
7
|
|
7
|
|
-
|
|
7
|
|
Shares
issued
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
Purchase
of non-controlling interests
|
-
|
|
-
|
|
-
|
|
-
|
|
(70
|
)
|
(70
|
)
|
(70
|
)
|
70
|
|
-
|
|
Purchase
of rights issue of non-controlling interests
|
-
|
|
-
|
|
-
|
|
-
|
|
(5
|
)
|
(5
|
)
|
(5
|
)
|
31
|
|
26
|
|
Change
in fair value of put options
|
-
|
|
-
|
|
-
|
|
-
|
|
(32
|
)
|
(32
|
)
|
(32
|
)
|
-
|
|
(32
|
)
|
Share
buyback programme
|
(8
|
)
|
-
|
|
-
|
|
-
|
|
(916
|
)
|
(916
|
)
|
(924
|
)
|
-
|
|
(924
|
)
|
Dividends
paid
|
-
|
|
-
|
|
-
|
|
-
|
|
(968
|
)
|
(968
|
)
|
(968
|
)
|
(61
|
)
|
(1,029
|
)
|
At 31 December 2017
|
789
|
|
1,349
|
|
2,362
|
|
(2,178
|
)
|
7,600
|
|
5,422
|
|
9,922
|
|
1,768
|
|
11,690
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
At 30 June 2018
|
780
|
|
1,349
|
|
2,133
|
|
(2,144
|
)
|
7,830
|
|
5,686
|
|
9,948
|
|
1,765
|
|
11,713
|
|
Profit
for the period
|
-
|
|
-
|
|
-
|
|
-
|
|
1,976
|
|
1,976
|
|
1,976
|
|
91
|
|
2,067
|
|
Other
comprehensive income
|
-
|
|
-
|
|
195
|
|
-
|
|
148
|
|
148
|
|
343
|
|
42
|
|
385
|
|
Employee
share schemes
|
-
|
|
-
|
|
-
|
|
73
|
|
(26
|
)
|
47
|
|
47
|
|
-
|
|
47
|
|
Share-based
incentive plans
|
-
|
|
-
|
|
-
|
|
-
|
|
25
|
|
25
|
|
25
|
|
-
|
|
25
|
|
Share-based
incentive plans in respect of associates
|
-
|
|
-
|
|
-
|
|
-
|
|
3
|
|
3
|
|
3
|
|
-
|
|
3
|
|
Shares
issued
|
-
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1
|
|
-
|
|
1
|
|
Purchase
of non-controlling interests
|
-
|
|
-
|
|
-
|
|
-
|
|
(627
|
)
|
(627
|
)
|
(627
|
)
|
(76
|
)
|
(703
|
)
|
Change
in fair value of put options
|
-
|
|
-
|
|
-
|
|
-
|
|
(2
|
)
|
(2
|
)
|
(2
|
)
|
-
|
|
(2
|
)
|
Share
buyback programme
|
(13
|
)
|
-
|
|
13
|
|
-
|
|
(1,355
|
)
|
(1,355
|
)
|
(1,355
|
)
|
-
|
|
(1,355
|
)
|
Dividends
declared
|
-
|
|
-
|
|
-
|
|
-
|
|
(993
|
)
|
(993
|
)
|
(993
|
)
|
(55
|
)
|
(1,048
|
)
|
At 31 December 2018
|
767
|
|
1,350
|
|
2,341
|
|
(2,071
|
)
|
6,979
|
|
4,908
|
|
9,366
|
|
1,767
|
|
11,133
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2018
|
|
Six
months ended 31 December 2017
|
||||||||
|
£
million
|
|
£
million
|
|
£
million
|
|
£
million
|
||||
Cash
flows from operating activities
|
|
|
|
|
|
|
|
||||
Profit
for the period
|
2,067
|
|
|
|
|
2,127
|
|
|
|
||
Taxation
|
560
|
|
|
|
|
77
|
|
|
|
||
Share
of after tax results of associates and joint ventures
|
(179
|
)
|
|
|
|
(168
|
)
|
|
|
||
Net
finance charges
|
128
|
|
|
|
|
154
|
|
|
|
||
Non-operating
items
|
(146
|
)
|
|
|
|
-
|
|
|
|
||
Operating
profit
|
|
|
2,430
|
|
|
|
|
2,190
|
|
||
Increase in
inventories
|
(245
|
)
|
|
|
|
(162
|
)
|
|
|
||
Increase in trade
and other receivables
|
(829
|
)
|
|
|
|
(908
|
)
|
|
|
||
Increase in trade
and other payables and provisions
|
418
|
|
|
|
|
540
|
|
|
|
||
Net
increase in working capital
|
|
|
(656
|
)
|
|
|
|
(530
|
)
|
||
Depreciation,
amortisation and impairment
|
185
|
|
|
|
|
187
|
|
|
|
||
Dividends
received
|
3
|
|
|
|
|
3
|
|
|
|
||
Post
employment payments less amounts included in operating
profit
|
(61
|
)
|
|
|
|
(66
|
)
|
|
|
||
Other
items
|
37
|
|
|
|
|
-
|
|
|
|
||
|
|
|
164
|
|
|
|
|
124
|
|
||
Cash
generated from operations
|
|
|
1,938
|
|
|
|
|
1,784
|
|
||
Interest
received
|
101
|
|
|
|
|
76
|
|
|
|
||
Interest
paid
|
(206
|
)
|
|
|
|
(204
|
)
|
|
|
||
Taxation
paid
|
(229
|
)
|
|
|
|
(408
|
)
|
|
|
||
|
|
|
(334
|
)
|
|
|
|
(536
|
)
|
||
Net
cash inflow from operating activities
|
|
|
1,604
|
|
|
|
|
1,248
|
|
||
Cash
flows from investing activities
|
|
|
|
|
|
|
|
||||
Disposal of
property, plant and equipment and computer software
|
13
|
|
|
|
|
9
|
|
|
|
||
Purchase of
property, plant and equipment and computer software
|
(271
|
)
|
|
|
|
(210
|
)
|
|
|
||
Movements in loans
and other investments
|
-
|
|
|
|
|
(18
|
)
|
|
|
||
Sale of
businesses and brands
|
419
|
|
|
|
|
2
|
|
|
|
||
Acquisition of
businesses
|
(32
|
)
|
|
|
|
(561
|
)
|
|
|
||
Net
cash inflow/(outflow) from investing activities
|
|
|
129
|
|
|
|
|
(778
|
)
|
||
Cash
flows from financing activities
|
|
|
|
|
|
|
|
||||
Share
buyback programme
|
(1,275
|
)
|
|
|
|
(742
|
)
|
|
|
||
Proceeds from issue
of share capital
|
1
|
|
|
|
|
1
|
|
|
|
||
Net
sale/(purchase) of own shares for share schemes
|
25
|
|
|
|
|
(28
|
)
|
|
|
||
Dividends paid to
non-controlling interests
|
(76
|
)
|
|
|
|
(61
|
)
|
|
|
||
Rights
issue proceeds from non-controlling interests
|
-
|
|
|
|
|
26
|
|
|
|
||
Proceeds from
bonds
|
1,754
|
|
|
|
|
1,136
|
|
|
|
||
Repayment of
bonds
|
-
|
|
|
|
|
(948
|
)
|
|
|
||
Purchase of shares
of non-controlling interests
|
(697
|
)
|
|
|
|
-
|
|
|
|
||
Net
movements in other borrowings
|
220
|
|
|
|
|
911
|
|
|
|
||
Equity
dividends paid
|
(993
|
)
|
|
|
|
(968
|
)
|
|
|
||
Net
cash outflow from financing activities
|
|
|
(1,041
|
)
|
|
|
|
(673
|
)
|
||
|
|
|
|
|
|
|
|
||||
Net
increase/(decrease) in net cash and cash equivalents
|
|
|
692
|
|
|
|
|
(203
|
)
|
||
Exchange
differences
|
|
|
14
|
|
|
|
|
(28
|
)
|
||
Net
cash and cash equivalents at beginning of the period
|
|
|
693
|
|
|
|
|
917
|
|
||
Net
cash and cash equivalents at end of the period
|
|
|
1,399
|
|
|
|
|
686
|
|
||
|
|
|
|
|
|
|
|
||||
Net
cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
|
1,591
|
|
|
|
|
920
|
|
||
Bank
overdrafts
|
|
|
(192
|
)
|
|
|
|
(234
|
)
|
||
|
|
|
1,399
|
|
|
|
|
686
|
|
Six months ended
|
North America
|
Europeand Turkey
|
Africa
|
Latin America and Caribbean
|
AsiaPacific
|
ISC
|
Eliminateinter- segment sales
|
Totaloperating segments
|
Corporateand other
|
Total
|
||||||||||
31 December 2018
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
Sales
|
2,667
|
|
2,879
|
|
1,160
|
|
864
|
|
2,765
|
|
923
|
|
(923
|
)
|
10,335
|
|
28
|
|
10,363
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
2,108
|
|
1,629
|
|
784
|
|
648
|
|
1,379
|
|
980
|
|
(920
|
)
|
6,608
|
|
29
|
|
6,637
|
|
Acquisitions
and disposals
|
68
|
|
1
|
|
1
|
|
-
|
|
1
|
|
-
|
|
-
|
|
71
|
|
-
|
|
71
|
|
ISC
allocation
|
7
|
|
35
|
|
3
|
|
8
|
|
7
|
|
(60
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
173
|
|
(32
|
)
|
33
|
|
16
|
|
11
|
|
3
|
|
(3
|
)
|
201
|
|
(1
|
)
|
200
|
|
Net sales
|
2,356
|
|
1,633
|
|
821
|
|
672
|
|
1,398
|
|
923
|
|
(923
|
)
|
6,880
|
|
28
|
|
6,908
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
953
|
|
581
|
|
143
|
|
221
|
|
385
|
|
88
|
|
-
|
|
2,371
|
|
(77
|
)
|
2,294
|
|
Acquisitions
and disposals
|
40
|
|
1
|
|
1
|
|
-
|
|
-
|
|
-
|
|
-
|
|
42
|
|
-
|
|
42
|
|
ISC
allocation
|
10
|
|
46
|
|
4
|
|
19
|
|
9
|
|
(88
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
98
|
|
(14
|
)
|
5
|
|
14
|
|
15
|
|
-
|
|
-
|
|
118
|
|
(3
|
)
|
115
|
|
Operating profit/(loss) before exceptional items
|
1,101
|
|
614
|
|
153
|
|
254
|
|
409
|
|
-
|
|
-
|
|
2,531
|
|
(80
|
)
|
2,451
|
|
Exceptional
items
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(21
|
)
|
(21
|
)
|
Operating profit/(loss)
|
1,101
|
|
614
|
|
153
|
|
254
|
|
409
|
|
-
|
|
-
|
|
2,531
|
|
(101
|
)
|
2,430
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
146
|
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(128
|
)
|
|||||||||
Share
of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
179
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
2,627
|
|
Six months ended
|
North America
|
Europeand Turkey
|
Africa
|
Latin America and Caribbean
|
AsiaPacific
|
ISC
|
Eliminateinter-segmentsales
|
Totaloperatingsegments
|
Corporateand other
|
Total
|
||||||||||
31 December 2017
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
Sales
|
2,467
|
|
2,887
|
|
1,088
|
|
840
|
|
2,625
|
|
797
|
|
(797
|
)
|
9,907
|
|
27
|
|
9,934
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
2,151
|
|
1,521
|
|
753
|
|
629
|
|
1,306
|
|
827
|
|
(778
|
)
|
6,409
|
|
24
|
|
6,433
|
|
Acquisitions
and disposals
|
20
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
20
|
|
-
|
|
20
|
|
ISC
allocation
|
7
|
|
28
|
|
3
|
|
6
|
|
5
|
|
(49
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
5
|
|
50
|
|
18
|
|
14
|
|
(13
|
)
|
19
|
|
(19
|
)
|
74
|
|
3
|
|
77
|
|
Net sales
|
2,183
|
|
1,599
|
|
774
|
|
649
|
|
1,298
|
|
797
|
|
(797
|
)
|
6,503
|
|
27
|
|
6,530
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
1,038
|
|
541
|
|
116
|
|
208
|
|
325
|
|
74
|
|
-
|
|
2,302
|
|
(89
|
)
|
2,213
|
|
Acquisitions
and disposals
|
2
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
2
|
|
-
|
|
2
|
|
ISC
allocation
|
10
|
|
43
|
|
3
|
|
10
|
|
8
|
|
(74
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
(23
|
)
|
15
|
|
1
|
|
-
|
|
(17
|
)
|
-
|
|
-
|
|
(24
|
)
|
(1
|
)
|
(25
|
)
|
Operating profit/(loss)
|
1,027
|
|
599
|
|
120
|
|
218
|
|
316
|
|
-
|
|
-
|
|
2,280
|
|
(90
|
)
|
2,190
|
|
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(154
|
)
|
|||||||||
Share
of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
168
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
2,204
|
|
|
Six months ended 31 December 2018
|
|
Six months ended 31 December 2017
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Items included in operating profit
|
|
|
|
||
GMP
equalisation
|
(21
|
)
|
|
-
|
|
|
(21
|
)
|
|
|
|
Non-operating items (sale of businesses)
|
|
|
|
||
Portfolio of 19 brands
|
154
|
|
|
-
|
|
United
National Breweries
|
(8
|
)
|
|
-
|
|
|
146
|
|
-
|
|
|
|
|
|
|
||
Exceptional items before taxation
|
125
|
|
|
-
|
|
|
|
|
|
||
Items included in taxation
|
|
|
|
||
Tax on
exceptional operating items
|
4
|
|
|
-
|
|
Tax on
exceptional non-operating items
|
(34
|
)
|
|
-
|
|
Exceptional
taxation
|
-
|
|
|
360
|
|
|
(30
|
)
|
|
360
|
|
|
|
|
|
||
|
|
|
|
||
Total exceptional items
|
95
|
|
360
|
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
95
|
|
|
360
|
|
Non-controlling
interests
|
-
|
|
|
-
|
|
Total exceptional items
|
95
|
|
|
360
|
|
|
Six months ended 31 December 2018
|
|
Six
months ended 31 December 2017
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Interest
income
|
102
|
|
|
74
|
|
Fair
value gain on financial instruments
|
59
|
|
|
29
|
|
Total
interest income
|
161
|
|
|
103
|
|
Interest
charges
|
(224
|
)
|
|
(208
|
)
|
Fair
value loss on financial instruments
|
(57
|
)
|
|
(25
|
)
|
Total
interest charges
|
(281
|
)
|
|
(233
|
)
|
Net
interest charges
|
(120
|
)
|
|
(130
|
)
|
|
|
|
|
||
Net
finance income in respect of post employment plans in
surplus
|
14
|
|
|
4
|
|
Hyperinflation
adjustment in respect of Venezuela (a)
|
6
|
|
|
6
|
|
Total
other finance income
|
20
|
|
|
10
|
|
Net
finance charge in respect of post employment plans in
deficit
|
(12
|
)
|
|
(11
|
)
|
Unwinding of
discounts
|
(8
|
)
|
|
(6
|
)
|
Interest in respect
of tax
|
(5
|
)
|
|
-
|
|
Change
in financial liability (Level 3)
|
(2
|
)
|
|
(16
|
)
|
Other
finance charges
|
(1
|
)
|
|
(1
|
)
|
Total
other finance charges
|
(28
|
)
|
|
(34
|
)
|
Net
other finance charges
|
(8
|
)
|
|
(24
|
)
|
|
At
estimated exchange rate
|
At
DICOM exchange rate
|
|
VES/GBP
10,466
|
VES/GBP 809
|
|
£
million
|
£
million
|
Net
sales
|
-
|
|
1
|
|
Operating
profit
|
-
|
|
-
|
|
Other
finance income - hyperinflation adjustment
|
6
|
|
72
|
|
Net
cash inflow from operating activities
|
-
|
|
1
|
|
Net
assets
|
65
|
|
843
|
|
|
31 December 2018
|
|
30
June 2018
|
|
31
December 2017
|
|||
|
£
million
|
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|
|||
Raw
materials and consumables
|
327
|
|
|
321
|
|
|
352
|
|
Work in
progress
|
51
|
|
|
44
|
|
|
46
|
|
Maturing
inventories
|
4,201
|
|
|
4,028
|
|
|
3,904
|
|
Finished goods and
goods for resale
|
697
|
|
|
622
|
|
|
617
|
|
|
5,276
|
|
|
5,015
|
|
|
4,919
|
|
|
31 December 2018
|
|
30 June 2018
|
|
31 December 2017
|
|||
|
£ million
|
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|
|||
Borrowings
due within one year and bank overdrafts
|
(1,742
|
)
|
|
(1,828
|
)
|
|
(2,378
|
)
|
Borrowings
due after one year
|
(10,272
|
)
|
|
(8,074
|
)
|
|
(7,647
|
)
|
Fair
value of foreign currency forwards and swaps
|
195
|
|
|
107
|
|
|
82
|
|
Fair
value of interest rate hedging instruments
|
20
|
|
|
(15
|
)
|
|
(10
|
)
|
Finance
lease liabilities
|
(144
|
)
|
|
(155
|
)
|
|
(165
|
)
|
|
(11,943
|
)
|
|
(9,965
|
)
|
|
(10,118
|
)
|
Cash
and cash equivalents
|
1,591
|
|
|
874
|
|
|
920
|
|
|
(10,352
|
)
|
|
(9,091
|
)
|
|
(9,198
|
)
|
|
Six months ended 31 December 2018
|
|
Six months ended 31 December 2017
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Net
increase/(decrease) in cash and cash equivalents before
exchange
|
692
|
|
|
(203
|
)
|
Net
increase in bonds and other borrowings
|
(1,974
|
)
|
|
(1,099
|
)
|
Net increase in net borrowings from cash flows
|
(1,282
|
)
|
|
(1,302
|
)
|
Exchange
differences on net borrowings
|
(32
|
)
|
|
47
|
|
Other
non-cash items
|
53
|
|
|
(51
|
)
|
Net
borrowings at beginning of the period
|
(9,091
|
)
|
|
(7,892
|
)
|
Net borrowings at end of the period
|
(10,352
|
)
|
|
(9,198
|
)
|
|
31 December 2018
|
|
30
June 2018
|
|
31
December 2017
|
|||
|
|
|
|
|
(restated(i))
|
|||
|
£
million
|
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|
|||
Derivative
assets
|
293
|
|
|
217
|
|
|
307
|
|
Derivative
liabilities
|
(145
|
)
|
|
(123
|
)
|
|
(184
|
)
|
Valuation
techniques based on observable market input (Level 2)
|
148
|
|
|
94
|
|
|
123
|
|
Other
financial assets
|
91
|
|
|
89
|
|
|
72
|
|
Other
financial liabilities
|
(171
|
)
|
|
(164
|
)
|
|
(219
|
)
|
Valuation
techniques based on unobservable market input (Level
3)
|
(80
|
)
|
|
(75
|
)
|
|
(147
|
)
|
|
Six months ended 31 December 2018
|
|
Six months ended 31 December 2017
|
||
|
£ million
|
|
£
million
|
||
Amounts recognised as distributions to equity
shareholders in the period
|
|
|
|
||
Final
dividend for the year ended 30 June 2018 of 40.4 pence
per share (2017 - 38.5 pence)
|
993
|
|
|
968
|
|
|
|
|
|
|
|
|
|
|
|
£ million
|
|
||
Sale consideration
|
|
|
|
Cash
received in period
|
419
|
|
|
Transaction
costs payable
|
(17
|
)
|
|
Deferred
consideration receivable
|
16
|
|
|
|
418
|
|
|
Net assets disposed of
|
|
|
|
Brands
|
(230
|
)
|
|
Goodwill
|
(12
|
)
|
|
Property,
plant and equipment
|
(2
|
)
|
|
Investment
in associates
|
(3
|
)
|
|
Inventories
|
(17
|
)
|
|
|
(264
|
)
|
|
Gain on disposal before taxation
|
154
|
|
|
Taxation
|
(34
|
)
|
|
Gain on disposal after taxation
|
120
|
|
|
|
|
North Americamillion
|
|
Europeand Turkeymillion
|
|
Africamillion
|
|
Latin Americaand Caribbeanmillion
|
|
AsiaPacificmillion
|
|
Corporatemillion
|
|
Totalmillion
|
|||||||
Volume (equivalent units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017 reported
|
|
25.2
|
|
|
25.2
|
|
|
17.4
|
|
|
12.5
|
|
|
46.1
|
|
|
-
|
|
|
126.4
|
|
Reclassification(ii)
|
|
-
|
|
|
0.2
|
|
|
-
|
|
|
-
|
|
|
(0.2
|
)
|
|
-
|
|
|
-
|
|
Disposals(iii)
|
|
(1.5
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(0.1
|
)
|
|
-
|
|
|
(1.6
|
)
|
2017 adjusted
|
|
23.7
|
|
|
25.4
|
|
|
17.4
|
|
|
12.5
|
|
|
45.8
|
|
|
-
|
|
|
124.8
|
|
Disposals(iii)
|
|
1.3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1.3
|
|
Organic movement
|
|
0.6
|
|
|
0.3
|
|
|
0.2
|
|
|
(0.1
|
)
|
|
3.4
|
|
|
-
|
|
|
4.4
|
|
2018 reported
|
|
25.6
|
|
|
25.7
|
|
|
17.6
|
|
|
12.4
|
|
|
49.2
|
|
|
-
|
|
|
130.5
|
|
Organic movement %
|
|
3
|
|
|
1
|
|
|
1
|
|
|
(1
|
)
|
|
7
|
|
|
-
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America£ million
|
|
Europeand Turkey£ million
|
|
Africa£ million
|
|
Latin Americaand Caribbean£ million
|
|
AsiaPacific£ million
|
|
Corporate£ million
|
|
Total£ million
|
|||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017 reported
|
|
2,467
|
|
|
2,887
|
|
|
1,088
|
|
|
840
|
|
|
2,625
|
|
|
27
|
|
|
9,934
|
|
Exchange(i)
|
|
52
|
|
|
(193
|
)
|
|
(1
|
)
|
|
(47
|
)
|
|
(125
|
)
|
|
-
|
|
|
(314
|
)
|
Reclassification(ii)
|
|
1
|
|
|
12
|
|
|
-
|
|
|
-
|
|
|
(13
|
)
|
|
-
|
|
|
-
|
|
Disposals(iii)
|
|
(97
|
)
|
|
(4
|
)
|
|
(3
|
)
|
|
-
|
|
|
(9
|
)
|
|
-
|
|
|
(113
|
)
|
2017 adjusted
|
|
2,423
|
|
|
2,702
|
|
|
1,084
|
|
|
793
|
|
|
2,478
|
|
|
27
|
|
|
9,507
|
|
Acquisitions and disposals(iii)
|
|
93
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
100
|
|
Organic movement
|
|
151
|
|
|
174
|
|
|
74
|
|
|
70
|
|
|
286
|
|
|
1
|
|
|
756
|
|
2018 reported
|
|
2,667
|
|
|
2,879
|
|
|
1,160
|
|
|
864
|
|
|
2,765
|
|
|
28
|
|
|
10,363
|
|
Organic movement %
|
|
6
|
|
|
6
|
|
|
7
|
|
|
9
|
|
|
12
|
|
|
4
|
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America£ million
|
|
Europeand Turkey£ million
|
|
Africa£ million
|
|
Latin Americaand Caribbean£ million
|
|
AsiaPacific£ million
|
|
Corporate£ million
|
|
Total£ million
|
|||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017 reported
|
|
2,183
|
|
|
1,599
|
|
|
774
|
|
|
649
|
|
|
1,298
|
|
|
27
|
|
|
6,530
|
|
Exchange(i)
|
|
44
|
|
|
(60
|
)
|
|
(1
|
)
|
|
(35
|
)
|
|
(39
|
)
|
|
-
|
|
|
(91
|
)
|
Reclassification(ii)
|
|
1
|
|
|
12
|
|
|
-
|
|
|
-
|
|
|
(13
|
)
|
|
-
|
|
|
-
|
|
Disposals(iii)
|
|
(75
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
|
(5
|
)
|
|
-
|
|
|
(84
|
)
|
2017 adjusted
|
|
2,153
|
|
|
1,549
|
|
|
771
|
|
|
614
|
|
|
1,241
|
|
|
27
|
|
|
6,355
|
|
Acquisitions and disposals(iii)
|
|
73
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
77
|
|
Organic movement
|
|
130
|
|
|
83
|
|
|
49
|
|
|
57
|
|
|
156
|
|
|
1
|
|
|
476
|
|
2018 reported
|
|
2,356
|
|
|
1,633
|
|
|
821
|
|
|
672
|
|
|
1,398
|
|
|
28
|
|
|
6,908
|
|
Organic movement %
|
|
6
|
|
|
5
|
|
|
6
|
|
|
9
|
|
|
13
|
|
|
4
|
|
|
7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017 reported
|
|
338
|
|
|
246
|
|
|
83
|
|
|
109
|
|
|
188
|
|
|
4
|
|
|
968
|
|
Exchange(i)
|
|
10
|
|
|
(7
|
)
|
|
3
|
|
|
(6
|
)
|
|
(4
|
)
|
|
-
|
|
|
(4
|
)
|
Reclassification(ii)
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Disposals(iii)
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
2017 adjusted
|
|
346
|
|
|
239
|
|
|
86
|
|
|
104
|
|
|
184
|
|
|
4
|
|
|
963
|
|
Acquisitions(iii)
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
Organic movement
|
|
36
|
|
|
21
|
|
|
5
|
|
|
6
|
|
|
24
|
|
|
(2
|
)
|
|
90
|
|
2018 reported
|
|
383
|
|
|
260
|
|
|
91
|
|
|
110
|
|
|
208
|
|
|
2
|
|
|
1,054
|
|
Organic movement %
|
|
10
|
|
|
9
|
|
|
6
|
|
|
6
|
|
|
13
|
|
|
(50
|
)
|
|
9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2017 reported
|
|
1,027
|
|
|
599
|
|
|
120
|
|
|
218
|
|
|
316
|
|
|
(90
|
)
|
|
2,190
|
|
Exchange(i)
|
|
39
|
|
|
(25
|
)
|
|
(2
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
-
|
|
Reclassification(ii)
|
|
1
|
|
|
9
|
|
|
-
|
|
|
(1
|
)
|
|
(9
|
)
|
|
-
|
|
|
-
|
|
Acquisitions
and disposals(iii)
|
|
(46
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
-
|
|
|
(1
|
)
|
|
-
|
|
|
(49
|
)
|
2017 adjusted
|
|
1,021
|
|
|
582
|
|
|
117
|
|
|
210
|
|
|
303
|
|
|
(92
|
)
|
|
2,141
|
|
Acquisitions and disposals(iii)
|
|
44
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
46
|
|
Organic movement
|
|
36
|
|
|
31
|
|
|
35
|
|
|
44
|
|
|
106
|
|
|
12
|
|
|
264
|
|
2018 reported
|
|
1,101
|
|
|
614
|
|
|
153
|
|
|
254
|
|
|
409
|
|
|
(80
|
)
|
|
2,451
|
|
Organic movement %
|
|
4
|
|
|
5
|
|
|
30
|
|
|
21
|
|
|
35
|
|
|
13
|
|
|
12
|
|
Organic operating margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018
|
|
46.3
|
%
|
|
37.6
|
%
|
|
18.5
|
%
|
|
37.9
|
%
|
|
29.3
|
%
|
|
n/a
|
|
35.2
|
%
|
|
2017
|
|
47.4
|
%
|
|
37.6
|
%
|
|
15.2
|
%
|
|
34.2
|
%
|
|
24.4
|
%
|
|
n/a
|
|
33.7
|
%
|
|
Margin improvement/(decline) (bps)
|
|
(112
|
)
|
|
(1
|
)
|
|
336
|
|
|
365
|
|
|
486
|
|
|
n/a
|
|
152
|
|
|
Volume
|
|
Sales
|
|
Net
sales
|
|
Marketing
|
|
Operatingprofit
|
|||||
|
equ.
units million
|
|
£
million
|
|
£
million
|
|
£
million
|
|
£
million
|
|||||
Six months ended 31 December 2017
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
|
|
|
|
|
|
|
|
|
|
|||||
Transaction
costs
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio of 19
brands
|
(1.5
|
)
|
|
(106
|
)
|
|
(81
|
)
|
|
(1
|
)
|
|
(52
|
)
|
Nepal
|
(0.1
|
)
|
|
(7
|
)
|
|
(3
|
)
|
|
-
|
|
|
(1
|
)
|
|
(1.6
|
)
|
|
(113
|
)
|
|
(84
|
)
|
|
(1
|
)
|
|
(53
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions and disposals
|
(1.6
|
)
|
|
(113
|
)
|
|
(84
|
)
|
|
(1
|
)
|
|
(49
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended 31 December 2018
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
|
|
|
|
|
|
|
|
|
|
|||||
Casamigos
|
-
|
|
|
11
|
|
|
10
|
|
|
1
|
|
|
3
|
|
|
-
|
|
|
11
|
|
|
10
|
|
|
1
|
|
|
3
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio
of 19 brands
|
1.3
|
|
|
89
|
|
|
67
|
|
|
-
|
|
|
43
|
|
|
1.3
|
|
|
89
|
|
|
67
|
|
|
-
|
|
|
43
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions and disposals
|
1.3
|
|
|
100
|
|
|
77
|
|
|
1
|
|
|
46
|
|
|
|
|
|
|
|
|
|
|
|
|
2018
|
|
2017
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Profit
attributable to equity shareholders of the parent
company
|
1,976
|
|
|
2,058
|
|
Exceptional
operating and non-operating items attributable to equity
shareholders of the parent company
|
(125
|
)
|
|
-
|
|
Exceptional
taxation credit
|
-
|
|
|
(360
|
)
|
Tax in
respect of exceptional operating and non-operating items
attributable to equity shareholders of the parent
company
|
30
|
|
|
-
|
|
|
1,881
|
|
|
1,698
|
|
|
|
|
|
||
Weighted average number of shares
|
million
|
|
million
|
||
Shares
in issue excluding own shares
|
2,442
|
|
|
2,505
|
|
Dilutive
potential ordinary shares
|
10
|
|
|
12
|
|
|
2,452
|
|
|
2,517
|
|
|
|
|
|
||
|
pence
|
|
pence
|
||
Basic earnings per share before exceptional items
|
77.0
|
|
67.8
|
||
|
|
|
|
||
Diluted earnings per share before exceptional items
|
76.7
|
|
67.5
|
|
2018
|
|
2017
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Net
cash from operating activities
|
1,604
|
|
|
1,248
|
|
Disposal
of property, plant and equipment and computer software
|
13
|
|
|
9
|
|
Purchase
of property, plant and equipment and computer software
|
(271
|
)
|
|
(210
|
)
|
Movements
in loans and other investments
|
-
|
|
|
(18
|
)
|
Free cash flow
|
1,346
|
|
|
1,029
|
|
|
2018
|
|
2017
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Operating
profit
|
2,430
|
|
|
2,190
|
|
Exceptional
operating items
|
21
|
|
|
-
|
|
Profit
before exceptional operating items attributable to non-controlling
interests
|
(91
|
)
|
|
(69
|
)
|
Share
of after tax results of associates and joint ventures
|
179
|
|
|
168
|
|
Tax
at the tax rate before exceptional items of 21.2% (2017 -
19.8%)
|
(538
|
)
|
|
(453
|
)
|
|
2,001
|
|
|
1,836
|
|
|
|
|
|
||
Average
net assets (excluding net post employment
assets/liabilities)
|
11,279
|
|
|
12,263
|
|
Average
non-controlling interests
|
(1,766
|
)
|
|
(1,741
|
)
|
Average
net borrowings
|
9,722
|
|
|
8,545
|
|
Average
integration and restructuring costs (net of tax)
|
1,639
|
|
|
1,639
|
|
Goodwill at 1 July
2004
|
1,562
|
|
|
1,562
|
|
Average
total invested capital
|
22,436
|
|
|
22,268
|
|
|
|
|
|
||
Return
on average total invested capital
|
17.8%
|
|
16.5%
|
|
2018
|
|
2017
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Borrowings due within one year
|
1,742
|
|
|
2,378
|
|
Borrowings due after one year
|
10,272
|
|
|
7,647
|
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(215
|
)
|
|
(72
|
)
|
Finance lease liabilities
|
144
|
|
|
165
|
|
Less: Cash and cash equivalents
|
(1,591
|
)
|
|
(920
|
)
|
Net borrowings
|
10,352
|
|
|
9,198
|
|
Post employment benefit liabilities before tax
|
739
|
|
|
818
|
|
Adjusted net borrowings
|
11,091
|
|
|
10,016
|
|
|
|
|
|
||
|
|
|
|
||
Operating profit
|
3,931
|
|
|
3,684
|
|
Exceptional operating items
|
149
|
|
|
42
|
|
Depreciation, amortisation and impairment (excluding exceptional
items)
|
366
|
|
|
370
|
|
Share of after tax results of associates and joint
ventures
|
320
|
|
|
306
|
|
EBITDA
|
4,766
|
|
|
4,402
|
|
|
|
|
|
||
|
|
|
|
||
Adjusted net borrowings to EBITDA (x)
|
2.3
|
|
|
2.3(i)
|
|
2018
|
|
2017
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Tax
before exceptional items (a)
|
530
|
|
|
437
|
|
Tax in
respect of exceptional items
|
30
|
|
|
-
|
|
Exceptional
tax credit
|
-
|
|
|
(360
|
)
|
Taxation
on profit (b)
|
560
|
|
|
77
|
|
|
|
|
|
||
Profit
from operations before taxation and exceptional items
(c)
|
2,502
|
|
|
2,204
|
|
Non-operating
items
|
146
|
|
|
-
|
|
Exceptional operating items
|
(21
|
)
|
|
-
|
|
Profit
before taxation (d)
|
2,627
|
|
|
2,204
|
|
|
|
|
|
||
Tax rate before exceptional items (a/c)
|
21.2
|
%
|
|
19.8
|
%
|
Tax
rate from operations after exceptional items (b/d)
|
21.3
|
%
|
|
3.5
|
%
|
●
|
economic, political, social or other developments in countries and
markets in which Diageo operates, which may contribute to a
reduction in demand for Diageo's products, adverse impacts on
Diageo's customer, supplier and/or financial counterparties, or the
imposition of import, investment or currency restrictions
(including the potential impact of any global, regional or local
trade wars or any tariffs, duties or other restrictions or barriers
imposed on the import or export of goods between territories,
including but not limited to, imports into and exports from the
United States, Canada, Mexico, the United Kingdom and/or the
European Union);
|
●
|
the
negotiating process surrounding, as well as the final terms of, the
United Kingdom's exit from the European Union, which could lead to
a sustained period of economic and political uncertainty and
complexity whilst detailed withdrawal terms and any successor
trading arrangements with other countries are negotiated, finalised
and implemented, potentially adversely impacting economic
conditions in the United Kingdom and Europe more generally as well
as Diageo's business operations and financial performance (see more
detailed status on Brexit below);
|
●
|
changes in consumer preferences and tastes, including as a result
of changes in demographics, evolving social trends (including any
shifts in consumer tastes towards locally produced small-batch
products), changes in travel, vacation or leisure activity
patterns, weather conditions, and/or a downturn in economic
conditions;
|
●
|
any litigation or other similar proceedings (including with
customs, competition, environmental, anti-corruption or other
regulatory authorities), including litigation directed at the
beverage alcohol industry generally or at Diageo in
particular;
|
●
|
changes in the domestic and international tax environment,
including as a result of the OECD Base Erosion and Profit Shifting
Initiative and EU anti-tax abuse measures, leading to uncertainty
around the application of existing and new tax laws and unexpected
tax exposures;
|
●
|
the effects of climate change, or legal, regulatory or market
measures intended to address climate change, on Diageo's business
or operations, including on the cost and supply of
water;
|
●
|
changes in the cost of production, including as a result of
increases in the cost of commodities, labour and/or energy or as a
result of inflation;
|
●
|
legal and regulatory developments, including changes in regulations
relating to production, distribution, importation, marketing,
advertising, sales, pricing, labelling, packaging, product
liability, antitrust, labour, compliance and control systems,
environmental issues and/or data
privacy;
|
●
|
the consequences of any failure by Diageo or its associates to
comply with anti-corruption, sanctions, trade restrictions or
similar laws and regulations, or any failure of Diageo's related
internal policies and procedures to comply with applicable law or
regulation;
|
●
|
the consequences of any failure of internal controls, including
those affecting compliance with existing or new accounting and/or
disclosure requirements;
|
●
|
contamination,
counterfeiting or other circumstances which could harm the level of
customer support for Diageo's brands and adversely impact its
sales;
|
●
|
Diageo's ability to maintain its brand image and corporate
reputation or to adapt to a changing media
environment;
|
●
|
increased competitive product and pricing pressures, including as a
result of actions by increasingly consolidated competitors or
increased competition from regional and local companies, that could
negatively impact Diageo's market share, distribution network,
costs and/or pricing;
|
●
|
any
disruption to production facilities, business service centres or
information systems, including as a result of
cyber-attacks;
|
●
|
Diageo's ability to derive the expected benefits from its business
strategies, including in relation to expansion in emerging markets,
acquisitions and/or disposals, cost savings and productivity
initiatives or inventory
forecasting;
|
●
|
increased
costs for, or shortages of, talent, as well as labour strikes or
disputes;
|
●
|
fluctuations in exchange rates and/or interest rates, which may
impact the value of transactions and assets denominated in other
currencies, increase Diageo's cost of financing or otherwise
adversely affect Diageo's financial
results;
|
●
|
movements in the value of the assets and liabilities related to
Diageo's pension plans;
|
●
|
Diageo's ability to renew supply, distribution, manufacturing or
licence agreements (or related rights) and licences on favourable
terms, or at all, when they expire; or
|
●
|
any failure by Diageo to protect its intellectual property
rights.
|
From
the UK (local): +44 (0)330 336 9105
|
|
From
the UK (free call): 0800 358 6377
|
|
From
the USA (local): +1 323 794 2093
|
|
From
the USA (free call): 866 548 4713
|
|
From
the UK (free call): 0808 101 1153
|
|
From
the USA (free call): 888 203 1112
|
|
Investor enquiries to:
|
Andy Ryan
|
+44 (0) 20 8978 6504
|
|
Pier Falcione
|
+44 (0) 20 8978 4838
|
|
Vinod Rao
|
+44 (0) 20 8978 2402
|
|
Sharon Rolston
|
+44 (0) 20 8978 1219
|
|
|
investor.relations@diageo.com
|
|
|
|
Media enquiries to:
|
Jessica Rouleau
|
+44 (0) 7925 642 561
|
|
Clemmie Raynsford
|
+44 (0) 7590 810 800
|
|
Dominic Redfearn
|
+44 (0) 7971 977 759
|
|
|
press@diageo.com
|
|
Diageo plc
|
|
(Registrant)
|
|
|
Date:
31 January 2019
|
|
|
|
|
By:___/s/ James Edmunds
|
|
|
|
FILING SIGNATORY: James Edmunds
|
|
POSITION: Deputy Company Secretary
|