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
|