|
Interim results, six months ended 31 December 2019
30 January 2020
|
Ivan Menezes, Chief Executive, commenting on the results
said:
|
Summary financial information
|
|
P6
|
F20 H1
|
F19 H1
|
Organicgrowth %
|
Reported growth%
|
||||
Volume
|
EUm
|
130.5
|
|
130.5
|
|
0
|
|
0
|
|
Net
sales
|
£
million
|
7,200
|
|
6,908
|
|
4
|
|
4
|
|
Marketing
|
£
million
|
1,116
|
|
1,054
|
|
6
|
|
6
|
|
Operating
profit before exceptional items
|
£
million
|
2,501
|
|
2,451
|
|
5
|
|
2
|
|
Exceptional
operating charges(i)
|
£
million
|
(59
|
)
|
(21
|
)
|
|
|
||
Operating
profit
|
£
million
|
2,442
|
|
2,430
|
|
|
0
|
|
|
Share
of associate and joint venture profit after tax
|
£
million
|
176
|
|
179
|
|
|
(2
|
)
|
|
Non-operating
exceptional gain(i)
|
£
million
|
—
|
|
146
|
|
|
|
||
Net
finance charges
|
£
million
|
(154
|
)
|
(128
|
)
|
|
|
||
Exceptional
taxation (charge)/credit(i)
|
£
million
|
14
|
|
(30
|
)
|
|
|
||
Tax
rate including exceptional items
|
%
|
21.5
|
|
21.3
|
|
|
1
|
|
|
Tax
rate before exceptional items
|
%
|
21.6
|
|
21.2
|
|
|
2
|
|
|
Profit
attributable to parent company’s shareholders
|
£
million
|
1,865
|
|
1,976
|
|
|
(6
|
)
|
|
Basic
earnings per share
|
pence
|
79.2
|
|
80.9
|
|
|
(2
|
)
|
|
Earnings
per share before exceptional items
|
pence
|
80.2
|
|
77.0
|
|
|
4
|
|
|
Interim dividend
|
pence
|
27.41
|
|
26.1
|
|
|
5
|
|
Net sales (£ million)
|
Net sales
|
£ million
|
|
F19 H1
|
6,908
|
|
Exchange(i)
|
52
|
|
Acquisitions and disposals
|
(46
|
)
|
Volume
|
11
|
|
Price/mix
|
275
|
|
F20 H1
|
7,200
|
|
Operating profit (£ million)
|
Operating profit
|
£ million
|
|
F19 H1
|
2,430
|
|
Exceptional operating items
|
(38
|
)
|
Exchange
|
(15
|
)
|
Acquisitions and disposals
|
(45
|
)
|
Organic movement
|
110
|
|
F20 H1
|
2,442
|
|
Operating margin (%)
|
Operating margin
|
ppt
|
|
F19 H1
|
35.2
|
|
Exceptional operating items
|
(0.52
|
)
|
Exchange
|
(0.46
|
)
|
Acquisitions and disposals
|
(0.41
|
)
|
Gross
margin
|
(0.65
|
)
|
Marketing
|
(0.25
|
)
|
Other operating items
|
1.03
|
|
F20 H1
|
33.9
|
|
Basic earnings per share (pence)
|
Basic earnings per share
|
pence
|
|
F19 H1
|
80.9
|
|
Exceptional items after tax
|
(4.9
|
)
|
Exchange on operating profit
|
(0.6
|
)
|
Acquisitions
and disposals(i)
|
(1.4
|
)
|
Organic operating profit growth
|
4.5
|
|
Associates and joint ventures
|
(0.1
|
)
|
Finance
charges(ii)
|
0.3
|
|
Tax(iii)
|
(1.3
|
)
|
Share
buyback(i)
|
1.7
|
|
Non-controlling interests
|
0.1
|
|
F20 H1
|
79.2
|
|
Free cash flow (£ million)
|
Free cash flow
|
£ million
|
|
F19 H1
|
1,346
|
|
Exchange(iii)
|
(15
|
)
|
Operating
profit(iv)
|
69
|
|
Working
capital(v)
|
(22
|
)
|
Capex
|
(64
|
)
|
Tax
|
(318
|
)
|
Interest
|
(48
|
)
|
Other(vi)
|
18
|
|
F20 H1
|
966
|
|
Return on average invested capital (%)(i)
|
Return on average invested capital
|
ppt
|
|
F19 H1
|
17.8
|
|
Exchange
|
0.09
|
|
Acquisitions and disposals
|
(0.34
|
)
|
Organic operating profit growth
|
0.97
|
|
Associates and joint ventures
|
(0.14
|
)
|
Tax
|
(0.29
|
)
|
Other
|
(0.62
|
)
|
F20 H1
|
17.5
|
|
Reported growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North
America
|
2
|
|
0.5
|
|
6
|
|
146
|
|
5
|
|
21
|
|
2
|
|
19
|
|
Europe
and Turkey
|
(1
|
)
|
(0.3
|
)
|
2
|
|
33
|
|
3
|
|
8
|
|
—
|
|
1
|
|
Africa
|
2
|
|
0.3
|
|
3
|
|
27
|
|
7
|
|
6
|
|
4
|
|
6
|
|
Latin
America and Caribbean
|
(1
|
)
|
(0.1
|
)
|
1
|
|
8
|
|
3
|
|
3
|
|
1
|
|
3
|
|
Asia
Pacific
|
(1
|
)
|
(0.4
|
)
|
6
|
|
79
|
|
12
|
|
24
|
|
6
|
|
23
|
|
Corporate
|
—
|
|
—
|
|
(4
|
)
|
(1
|
)
|
—
|
|
—
|
|
(3
|
)
|
(2
|
)
|
Diageo
|
—
|
|
—
|
|
4
|
|
292
|
|
6
|
|
62
|
|
2
|
|
50
|
|
Organic growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North America
|
3
|
|
0.7
|
|
6
|
|
129
|
|
6
|
|
22
|
|
5
|
|
56
|
|
Europe and Turkey
|
(1
|
)
|
(0.3
|
)
|
3
|
|
42
|
|
4
|
|
11
|
|
2
|
|
10
|
|
Africa
|
2
|
|
0.3
|
|
5
|
|
40
|
|
5
|
|
5
|
|
13
|
|
19
|
|
Latin America and Caribbean
|
(1
|
)
|
(0.1
|
)
|
2
|
|
14
|
|
2
|
|
2
|
|
3
|
|
7
|
|
Asia Pacific
|
(1
|
)
|
(0.4
|
)
|
4
|
|
62
|
|
11
|
|
22
|
|
6
|
|
23
|
|
Corporate
|
—
|
|
—
|
|
(4
|
)
|
(1
|
)
|
—
|
|
—
|
|
(6
|
)
|
(5
|
)
|
Diageo
|
—
|
|
0.2
|
|
4
|
|
286
|
|
6
|
|
62
|
|
5
|
|
110
|
|
Notes to the business and financial review
|
North America
|
Key financials £ million:
|
||||||||||||||
|
F19 H1
|
FX
|
Acquisitionsand disposals
|
Organic movement
|
Other (v)
|
F20 H1
|
Reported movement%
|
|||||||
Net
sales
|
2,356
|
|
54
|
|
(37
|
)
|
129
|
|
—
|
|
2,502
|
|
6
|
|
Marketing
|
383
|
|
(2
|
)
|
1
|
|
22
|
|
—
|
|
404
|
|
5
|
|
Operating
profit
|
1,101
|
|
7
|
|
(40
|
)
|
56
|
|
(4
|
)
|
1,120
|
|
2
|
|
Markets:
|
|
|
|
|
|
Global giants, local stars and reserve(i):
|
||||||||||
|
Organic
volume movement
|
Reported volume
movement
|
Organicnet sales
movement
|
Reportednet sales
movement
|
|
|
Organic
volume movement(iii)
|
Organic
net sales movement
|
Reported net sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
North
America
|
3
|
|
2
|
|
6
|
|
6
|
|
|
Crown
Royal
|
10
|
|
11
|
|
14
|
|
|
|
|
|
|
|
Smirnoff
|
(2
|
)
|
—
|
|
4
|
|
||||
US
Spirits(ii)
|
2
|
|
(3
|
)
|
6
|
|
5
|
|
|
Captain
Morgan
|
1
|
|
1
|
|
4
|
|
DBC
USA
|
9
|
|
9
|
|
11
|
|
14
|
|
|
Johnnie
Walker
|
(4
|
)
|
(5
|
)
|
(3
|
)
|
Canada
|
4
|
|
1
|
|
7
|
|
7
|
|
|
Ketel
One(iv)
|
(1
|
)
|
(3
|
)
|
1
|
|
|
|
|
|
|
|
Cîroc
vodka
|
(11
|
)
|
(9
|
)
|
(7
|
)
|
||||
Spirits
|
2
|
|
1
|
|
6
|
|
6
|
|
|
Baileys
|
4
|
|
7
|
|
9
|
|
Beer
|
—
|
|
—
|
|
4
|
|
6
|
|
|
Guinness
|
1
|
|
4
|
|
7
|
|
Ready to drink
|
16
|
|
18
|
|
19
|
|
22
|
|
|
Tanqueray
|
(1
|
)
|
2
|
|
4
|
|
|
|
|
|
|
|
Don
Julio
|
26
|
|
26
|
|
25
|
|
||||
|
|
|
|
|
|
Bulleit
|
7
|
|
4
|
|
7
|
|
||||
|
|
|
|
|
|
Buchanan’s
|
6
|
|
9
|
|
12
|
|
Europe and Turkey
|
|
Key financials £ million:
|
||||||||||||
|
F19 H1
|
FX
|
Acquisitionsand disposals
|
Organic movement
|
F20 H1
|
Reported movement%
|
||||||
Net sales
|
1,633
|
|
(13
|
)
|
4
|
|
42
|
|
1,666
|
|
2
|
|
Marketing
|
260
|
|
(4
|
)
|
1
|
|
11
|
|
268
|
|
3
|
|
Operating profit
|
614
|
|
(6
|
)
|
(3
|
)
|
10
|
|
615
|
|
—
|
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
|
Organic
volume movement
|
Reported volume
movement
|
Organic
net sales movement
|
Reported net sales
movement
|
|
|
Organic
volume movement(ii)
|
Organic
net sales movement
|
Reported net sales
movement
|
||||||||
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
||||||||
|
|
Europe
and Turkey
|
|
|
|
|
|
Guinness
|
1
|
|
2
|
|
—
|
|
||||
|
|
(1
|
)
|
(1
|
)
|
3
|
|
2
|
|
|
Johnnie
Walker
|
(1
|
)
|
(3
|
)
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
Smirnoff
|
(4
|
)
|
1
|
|
(1
|
)
|
||||
Europe
|
(1
|
)
|
(1
|
)
|
3
|
|
2
|
|
|
Baileys
|
10
|
|
7
|
|
7
|
|
||
|
|
Turkey
|
(5
|
)
|
(5
|
)
|
13
|
|
15
|
|
|
Yenì
Raki
|
(16
|
)
|
2
|
|
5
|
|
|
|
|
|
|
|
|
|
Captain
Morgan
|
7
|
|
12
|
|
12
|
|
||||
|
|
Spirits
|
(1
|
)
|
(1
|
)
|
3
|
|
3
|
|
|
JƐB
|
(3
|
)
|
(1
|
)
|
(3
|
)
|
|
|
Beer
|
(1
|
)
|
(1
|
)
|
—
|
|
(2
|
)
|
|
Tanqueray
|
6
|
|
6
|
|
5
|
|
|
|
Ready
to drink
|
2
|
|
2
|
|
5
|
|
2
|
|
|
|
|
|
|
Africa
|
|
Key financials £ million:
|
||||||||||||
|
F19 H1
|
FX
|
Acquisitions and disposals
|
Organic movement
|
F20 H1
|
Reported movement%
|
||||||
Net
sales
|
821
|
|
(1
|
)
|
(12
|
)
|
40
|
|
848
|
|
3
|
|
Marketing
|
91
|
|
1
|
|
—
|
|
5
|
|
97
|
|
7
|
|
Operating profit
|
153
|
|
(11
|
)
|
(2
|
)
|
19
|
|
159
|
|
4
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organic
volume movement(iii)
|
Reported volume
movement
|
Organicnet sales
movement
|
Reported net sales
movement
|
|
|
Organic
volume movement(ii)
|
Organicnet sales
movement
|
Reported net sales
movement
|
||||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
||||||||
|
Africa
|
2
|
|
2
|
|
5
|
|
3
|
|
|
Guinness
|
(3
|
)
|
—
|
|
1
|
|
|
|
|
|
|
|
|
Johnnie
Walker
|
18
|
|
13
|
|
12
|
|
||||
|
East
Africa
|
6
|
|
5
|
|
10
|
|
11
|
|
|
Smirnoff
|
(11
|
)
|
(9
|
)
|
(10
|
)
|
|
Africa Regional Markets
|
(4
|
)
|
(4
|
)
|
5
|
|
—
|
|
|
|
|
|
|
|||
|
Nigeria
|
12
|
|
13
|
|
1
|
|
5
|
|
|
Other
beer:
|
||||||
|
South Africa
|
(8
|
)
|
(9
|
)
|
(4
|
)
|
(11
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
Malta
|
(8
|
)
|
5
|
|
1
|
|
||||
|
Spirits
|
4
|
|
4
|
|
7
|
|
6
|
|
|
Tusker
|
(2
|
)
|
2
|
|
3
|
|
|
Beer
|
—
|
|
—
|
|
5
|
|
5
|
|
|
Senator
|
14
|
|
17
|
|
19
|
|
|
Ready to drink
|
7
|
|
—
|
|
6
|
|
(12
|
)
|
|
Serengeti
|
22
|
|
27
|
|
30
|
|
Latin America and Caribbean
|
|
Key financials £ million:
|
||||||||||||||
|
F19 H1
|
FX
|
Acquisitionsand disposals
|
Organic movement
|
Other(iii)
|
F20 H1
|
Reported movement%
|
|||||||
Net
sales
|
672
|
|
(5
|
)
|
(1
|
)
|
14
|
|
—
|
|
680
|
|
1
|
|
Marketing
|
110
|
|
1
|
|
—
|
|
2
|
|
—
|
|
113
|
|
3
|
|
Operating
profit
|
254
|
|
(8
|
)
|
—
|
|
7
|
|
4
|
|
257
|
|
1
|
|
|
Markets:
|
|
|
|
|
|
Global giants and local
stars(i):
|
||||||||||
|
Organic
volume movement
|
Reported
volume movement
|
Organicnet
sales movement
|
Reported
net sales movement
|
|
|
Organic
volume movement(ii)
|
Organicnet
sales movement
|
Reportednet
sales movement
|
||||||||
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
|
Latin
America and Caribbean
|
|
|
|
|
|
Johnnie
Walker
|
(12
|
)
|
(12
|
)
|
(13
|
)
|
||||
|
(1
|
)
|
(1
|
)
|
2
|
|
1
|
|
|
Buchanan’s
|
8
|
|
9
|
|
8
|
|
|
|
|
|
|
|
|
|
Smirnoff
|
9
|
|
16
|
|
17
|
|
||||
|
PUB
|
—
|
|
—
|
|
7
|
|
5
|
|
|
Old
Parr
|
3
|
|
6
|
|
2
|
|
|
Mexico
|
(1
|
)
|
(1
|
)
|
(2
|
)
|
—
|
|
|
Baileys
|
(4
|
)
|
—
|
|
(5
|
)
|
|
CCA
|
(3
|
)
|
(3
|
)
|
4
|
|
1
|
|
|
Ypióca
|
(3
|
)
|
(1
|
)
|
(2
|
)
|
|
Andean
|
25
|
|
25
|
|
23
|
|
14
|
|
|
Black
& White
|
1
|
|
2
|
|
1
|
|
|
PEBAC
|
(21
|
)
|
(20
|
)
|
(30
|
)
|
(30
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
Spirits
|
(1
|
)
|
(1
|
)
|
1
|
|
1
|
|
|
|
|
|
|
|||
|
Beer
|
2
|
|
2
|
|
4
|
|
2
|
|
|
|
|
|
|
|||
|
Ready
to drink
|
8
|
|
8
|
|
15
|
|
15
|
|
|
|
|
|
|
Asia Pacific
|
Key financials £ million:
|
||||||||||||
|
F19 H1
|
FX
|
Acquisitionsand disposals
|
Organic movement
|
F20 H1
|
Reported movement%
|
||||||
Net
sales
|
1,398
|
|
17
|
|
—
|
|
62
|
|
1,477
|
|
6
|
|
Marketing
|
208
|
|
2
|
|
—
|
|
22
|
|
232
|
|
12
|
|
Operating profit before exceptional items
|
409
|
|
—
|
|
—
|
|
23
|
|
432
|
|
6
|
|
Exceptional
operating items(i)
|
—
|
|
|
|
|
(59
|
)
|
|
||||
Operating profit
|
409
|
|
|
|
|
373
|
|
(9
|
)
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
|
Organic
volume movement(i)
|
Reported volume
movement
|
Organic
net sales movement
|
Reported net sales
movement
|
|
|
Organic
volume movement(ii)
|
Organicnet sales
movement
|
Reported net sales
movement
|
||||||||
|
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
|
|
Asia
Pacific
|
(1
|
)
|
(1
|
)
|
4
|
|
6
|
|
|
Johnnie
Walker
|
(7
|
)
|
(1
|
)
|
1
|
|
|
|
|
|
|
|
|
|
McDowell's
|
—
|
|
3
|
|
6
|
|
||||
|
|
India
|
—
|
|
—
|
|
2
|
|
5
|
|
|
Windsor
|
(26
|
)
|
(13
|
)
|
(16
|
)
|
|
|
Greater
China
|
21
|
|
21
|
|
24
|
|
24
|
|
|
Smirnoff
|
(2
|
)
|
4
|
|
2
|
|
|
|
Australia
|
10
|
|
10
|
|
13
|
|
9
|
|
|
Guinness
|
2
|
|
1
|
|
(4
|
)
|
|
|
South
East Asia
|
(4
|
)
|
(5
|
)
|
—
|
|
3
|
|
|
Bundaberg
|
4
|
|
4
|
|
1
|
|
|
|
North
Asia
|
(6
|
)
|
(4
|
)
|
(3
|
)
|
(3
|
)
|
|
Shui
Jing Fang(iii)
|
29
|
|
26
|
|
26
|
|
Travel
Retail Asia and Middle East
|
(29
|
)
|
(28
|
)
|
(18
|
)
|
(19
|
)
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Spirits
|
(1
|
)
|
(1
|
)
|
5
|
|
7
|
|
|
|
|
|
|
|||
Beer
|
1
|
|
1
|
|
1
|
|
(4
|
)
|
|
|
|
|
|
|||||
|
|
Ready
to drink
|
7
|
|
7
|
|
6
|
|
5
|
|
|
|
|
|
|
Key categories:
|
||||||
|
Organic
volume movement(iii) %
|
Organicnet
sales movement %
|
Reportednet
sales movement %
|
|||
Spirits(i)
|
—
|
|
4
|
|
5
|
|
Scotch
|
(3
|
)
|
—
|
|
1
|
|
Vodka(ii)(iv)
|
(1
|
)
|
(1
|
)
|
—
|
|
Canadian
whisky
|
10
|
|
11
|
|
10
|
|
Rum(ii)
|
(2
|
)
|
2
|
|
1
|
|
Liqueurs
|
7
|
|
7
|
|
6
|
|
Indian-Made
Foreign Liquor (IMFL) whisky
|
1
|
|
3
|
|
6
|
|
Gin(ii)
|
(2
|
)
|
7
|
|
7
|
|
Tequila
|
25
|
|
31
|
|
32
|
|
US
whiskey
|
2
|
|
6
|
|
8
|
|
Beer
|
—
|
|
2
|
|
2
|
|
Ready to drink
|
10
|
|
11
|
|
8
|
|
Global giants, local stars and reserve(i):
|
||||||
|
Organic
volume movement(ii) %
|
Organicnet
sales movement %
|
Reportednet
sales movement %
|
|||
Global giants
|
|
|
|
|||
Johnnie
Walker
|
(5
|
)
|
(4
|
)
|
(3
|
)
|
Smirnoff
|
(2
|
)
|
1
|
|
2
|
|
Baileys
|
8
|
|
8
|
|
8
|
|
Captain
Morgan
|
4
|
|
5
|
|
6
|
|
Tanqueray
|
9
|
|
13
|
|
13
|
|
Guinness
|
—
|
|
1
|
|
1
|
|
Local stars
|
|
|
|
|||
Crown
Royal
|
10
|
|
11
|
|
13
|
|
Yenì
Raki
|
(16
|
)
|
3
|
|
5
|
|
Buchanan’s
|
8
|
|
9
|
|
10
|
|
JƐB
|
(3
|
)
|
(3
|
)
|
(4
|
)
|
Windsor
|
(26
|
)
|
(13
|
)
|
(16
|
)
|
Old
Parr
|
2
|
|
5
|
|
2
|
|
Bundaberg
|
4
|
|
4
|
|
1
|
|
Black
& White
|
4
|
|
5
|
|
6
|
|
Ypióca
|
(3
|
)
|
(1
|
)
|
(2
|
)
|
McDowell's
|
—
|
|
3
|
|
6
|
|
Shui
Jing Fang(iii)
|
29
|
|
26
|
|
26
|
|
Reserve
|
|
|
|
|||
Scotch
malts
|
11
|
|
17
|
|
18
|
|
Cîroc
vodka
|
(10
|
)
|
(9
|
)
|
(7
|
)
|
Ketel
One(iv)
|
1
|
|
(1
|
)
|
2
|
|
Don
Julio
|
13
|
|
25
|
|
24
|
|
Bulleit
|
6
|
|
4
|
|
7
|
|
SUMMARY INCOME STATEMENT
|
|
31
December 2018
|
Exchange(a)
|
Acquisitions
and disposals(b)
|
Organic
movement(i)
|
Fair
value remeasure-ment(d)
|
31 December 2019
|
||||||
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
£ million
|
||||||
Sales
|
10,363
|
|
85
|
|
(58
|
)
|
441
|
|
—
|
|
10,831
|
|
Excise
duties
|
(3,455
|
)
|
(33
|
)
|
12
|
|
(155
|
)
|
—
|
|
(3,631
|
)
|
Net
sales
|
6,908
|
|
52
|
|
(46
|
)
|
286
|
|
—
|
|
7,200
|
|
Cost of
sales
|
(2,508
|
)
|
(57
|
)
|
7
|
|
(148
|
)
|
4
|
|
(2,702
|
)
|
Gross
profit
|
4,400
|
|
(5
|
)
|
(39
|
)
|
138
|
|
4
|
|
4,498
|
|
Marketing
|
(1,054
|
)
|
2
|
|
(2
|
)
|
(62
|
)
|
—
|
|
(1,116
|
)
|
Other
operating items
|
(895
|
)
|
(12
|
)
|
(4
|
)
|
34
|
|
(4
|
)
|
(881
|
)
|
Operating
profit before exceptional items
|
2,451
|
|
(15
|
)
|
(45
|
)
|
110
|
|
—
|
|
2,501
|
|
Exceptional
operating items (c)
|
(21
|
)
|
|
|
|
|
(59
|
)
|
||||
Operating
profit
|
2,430
|
|
|
|
|
|
2,442
|
|
||||
Non-operating
items (c)
|
146
|
|
|
|
|
|
—
|
|
||||
Net
finance charges
|
(128
|
)
|
|
|
|
|
(154
|
)
|
||||
Share
of after tax results of associates and joint ventures
|
179
|
|
|
|
|
|
176
|
|
||||
Profit
before taxation
|
2,627
|
|
|
|
|
|
2,464
|
|
||||
Taxation
(e)
|
(560
|
)
|
|
|
|
|
(530
|
)
|
||||
Profit
for the period
|
2,067
|
|
|
|
|
|
1,934
|
|
|
Gains/(losses)
|
|
£ million
|
Translation
impact
|
33
|
Transaction
impact
|
(48)
|
Operating profit before exceptional items
|
(15)
|
Net
finance charges – translation impact
|
(1)
|
Net
finance charges – transaction impact
|
(2)
|
Net
finance charges
|
(3)
|
Associates
– translation impact
|
(3)
|
Profit before exceptional items and taxation
|
(21)
|
|
Six months ended 31 December 2019
|
Six months ended 31 December 2018
|
||
Exchange
rates
|
|
|
||
Translation £1
=
|
$1.26
|
|
$1.29
|
|
Transaction £1
=
|
$1.36
|
|
$1.31
|
|
Translation £1
=
|
€1.14
|
|
€1.12
|
|
Transaction £1
=
|
€1.13
|
|
€1.13
|
|
MOVEMENT IN NET BORROWINGS AND EQUITY
|
|
2019
|
2018
|
||
|
£
million
|
£
million
|
||
Net borrowings at 30 June
|
(11,277
|
)
|
(9,091
|
)
|
Free
cash flow (a)
|
966
|
|
1,346
|
|
Acquisitions
(b)
|
(106
|
)
|
(32
|
)
|
Sale
of businesses and brands (c)
|
—
|
|
419
|
|
Share
buyback programme
|
(1,155
|
)
|
(1,275
|
)
|
Proceeds from issue
of share capital
|
1
|
|
1
|
|
Net
sale/(purchase) of own shares for share schemes (d)
|
33
|
|
25
|
|
Dividends paid to
non-controlling interests
|
(76
|
)
|
(76
|
)
|
Net
movements in bonds (e)
|
1,289
|
|
1,754
|
|
Purchase of shares
of non-controlling interests (f)
|
(25
|
)
|
(697
|
)
|
Net
movements in other borrowings (g)
|
209
|
|
220
|
|
Equity
dividends paid
|
(1,006
|
)
|
(993
|
)
|
Net
increase in cash and cash equivalents
|
130
|
|
692
|
|
Net
increase in bonds and other borrowings
|
(1,503
|
)
|
(1,974
|
)
|
Exchange
differences (h)
|
209
|
|
(32
|
)
|
Other
non-cash items (i)
|
(439
|
)
|
53
|
|
Net borrowings at 31 December
|
(12,880
|
)
|
(10,352
|
)
|
|
2019
|
2018
|
||
|
£
million
|
£
million
|
||
Equity at 30 June
|
10,156
|
|
11,713
|
|
Profit
for the period
|
1,934
|
|
2,067
|
|
Exchange
adjustments (a)
|
(623
|
)
|
251
|
|
Remeasurement of
post employment plans net of taxation
|
(82
|
)
|
150
|
|
Purchase of shares
of non-controlling interests (b)
|
(25
|
)
|
(703
|
)
|
Dividends to
non-controlling interests
|
(52
|
)
|
(55
|
)
|
Equity
dividends paid
|
(1,006
|
)
|
(993
|
)
|
Share
buyback programme
|
(1,200
|
)
|
(1,355
|
)
|
Other
reserve movements
|
128
|
|
58
|
|
Equity at 31 December
|
9,230
|
|
11,133
|
|
|
|
|
Six months ended 31 December 2019
|
|
Six
months ended 31 December 2018
|
||
|
Notes
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|||
|
Sales
|
2
|
10,831
|
|
|
10,363
|
|
|
Excise
duties
|
|
(3,631
|
)
|
|
(3,455
|
)
|
|
Net
sales
|
2
|
7,200
|
|
|
6,908
|
|
|
Cost of
sales
|
|
(2,702
|
)
|
|
(2,508
|
)
|
|
Gross
profit
|
|
4,498
|
|
|
4,400
|
|
|
Marketing
|
|
(1,116
|
)
|
|
(1,054
|
)
|
|
Other
operating items
|
|
(940
|
)
|
|
(916
|
)
|
|
Operating
profit
|
2
|
2,442
|
|
|
2,430
|
|
|
Non-operating
items
|
3
|
—
|
|
|
146
|
|
|
Finance
income
|
4
|
163
|
|
|
181
|
|
|
Finance
charges
|
4
|
(317
|
)
|
|
(309
|
)
|
|
Share
of after tax results of associates and joint ventures
|
|
176
|
|
|
179
|
|
|
Profit
before taxation
|
|
2,464
|
|
|
2,627
|
|
|
Taxation
|
5
|
(530
|
)
|
|
(560
|
)
|
|
Profit for the period
|
|
1,934
|
|
|
2,067
|
|
|
|
|
|
|
|
||
|
Attributable
to:
|
|
|
|
|
||
|
Equity
shareholders of the parent company
|
|
1,865
|
|
|
1,976
|
|
|
Non-controlling
interests
|
|
69
|
|
|
91
|
|
|
|
|
1,934
|
|
|
2,067
|
|
|
|
|
|
|
|
||
|
|
|
million
|
|
million
|
||
|
Weighted
average number of shares
|
|
|
|
|
||
|
Shares
in issue excluding own shares
|
|
2,356
|
|
|
2,442
|
|
|
Dilutive potential
ordinary shares
|
|
10
|
|
|
10
|
|
|
|
|
2,366
|
|
|
2,452
|
|
|
|
|
|
|
|
||
|
|
|
pence
|
|
pence
|
||
|
Basic
earnings per share
|
|
79.2
|
|
|
80.9
|
|
|
|
|
|
|
|
||
|
Diluted
earnings per share
|
|
78.8
|
|
|
80.6
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2019
|
|
Six
months ended 31 December 2018
|
||
|
£ million
|
|
£
million
|
||
Other comprehensive income
|
|
|
|
||
Items that will not be recycled subsequently to the
income statement
|
|
|
|
||
Net
remeasurement of post employment plans
|
|
|
|
||
-
group
|
(101
|
)
|
|
183
|
|
-
associates and joint ventures
|
(1
|
)
|
|
1
|
|
Tax on
post employment plans
|
20
|
|
|
(34
|
)
|
|
(82
|
)
|
|
150
|
|
Items that may be recycled subsequently to the income
statement
|
|
|
|
||
Exchange
differences on translation of foreign operations
|
|
|
|
||
-
group
|
(585
|
)
|
|
265
|
|
-
associates and joint ventures
|
(161
|
)
|
|
43
|
|
-
non-controlling interests
|
(100
|
)
|
|
42
|
|
Net
investment hedges
|
223
|
|
|
(99
|
)
|
Tax on
exchange differences - group
|
(7
|
)
|
|
1
|
|
Effective portion
of changes in fair value of cash flow hedges
|
|
|
|
||
- hedge
of foreign currency debt of the group
|
(60
|
)
|
|
115
|
|
-
transaction exposure hedging of the group
|
63
|
|
|
(66
|
)
|
-
commodity price risk of the group
|
5
|
|
|
(6
|
)
|
-
hedges by associates and joint ventures
|
3
|
|
|
(5
|
)
|
-
recycled to income statement - hedge of foreign currency debt of
the group
|
50
|
|
|
(71
|
)
|
-
recycled to income statement - transaction exposure hedging of the
group
|
12
|
|
|
20
|
|
Tax on
effective portion of changes in fair value of cash flow
hedges
|
5
|
|
|
(2
|
)
|
Hyperinflation
adjustment
|
(15
|
)
|
|
(4
|
)
|
Tax on
hyperinflation adjustment
|
4
|
|
|
2
|
|
|
(563
|
)
|
|
235
|
|
Other comprehensive (loss)/profit, net of tax, for the
period
|
(645
|
)
|
|
385
|
|
Profit
for the period
|
1,934
|
|
|
2,067
|
|
Total comprehensive income for the period
|
1,289
|
|
|
2,452
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
1,320
|
|
|
2,319
|
|
Non-controlling
interests
|
(31
|
)
|
|
133
|
|
Total comprehensive income for the period
|
1,289
|
|
|
2,452
|
|
|
|
31 December 2019
|
|
30 June 2019
|
|
31 December 2018
|
||||||||||||
|
Notes
|
£ million
|
|
£ million
|
|
£
million
|
|
£
million
|
|
£
million
|
|
£
million
|
||||||
Non-current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Intangible
assets
|
6
|
12,035
|
|
|
|
|
12,557
|
|
|
|
|
12,555
|
|
|
|
|||
Property,
plant and equipment
|
|
4,834
|
|
|
|
|
4,455
|
|
|
|
|
4,238
|
|
|
|
|||
Biological
assets
|
|
42
|
|
|
|
|
34
|
|
|
|
|
26
|
|
|
|
|||
Investments
in associates and joint ventures
|
|
3,202
|
|
|
|
|
3,173
|
|
|
|
|
3,230
|
|
|
|
|||
Other
investments
|
|
51
|
|
|
|
|
49
|
|
|
|
|
48
|
|
|
|
|||
Other
receivables
|
|
48
|
|
|
|
|
53
|
|
|
|
|
59
|
|
|
|
|||
Other
financial assets
|
|
338
|
|
|
|
|
404
|
|
|
|
|
281
|
|
|
|
|||
Deferred
tax assets
|
|
71
|
|
|
|
|
138
|
|
|
|
|
106
|
|
|
|
|||
Post
employment benefit assets
|
|
955
|
|
|
|
|
1,060
|
|
|
|
|
1,036
|
|
|
|
|||
|
|
|
|
21,576
|
|
|
|
|
21,923
|
|
|
|
|
21,579
|
|
|||
Current assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Inventories
|
7
|
5,459
|
|
|
|
|
5,472
|
|
|
|
|
5,276
|
|
|
|
|||
Trade
and other receivables
|
|
3,587
|
|
|
|
|
2,694
|
|
|
|
|
3,541
|
|
|
|
|||
Assets
held for sale
|
|
51
|
|
|
|
|
65
|
|
|
|
|
83
|
|
|
|
|||
Corporate tax receivables
|
|
68
|
|
|
|
|
83
|
|
|
|
|
12
|
|
|
|
|||
Other
financial assets
|
|
42
|
|
|
|
|
127
|
|
|
|
|
12
|
|
|
|
|||
Cash
and cash equivalents
|
8
|
950
|
|
|
|
|
932
|
|
|
|
|
1,591
|
|
|
|
|||
|
|
|
|
10,157
|
|
|
|
|
9,373
|
|
|
|
|
10,515
|
|
|||
Total assets
|
|
|
|
31,733
|
|
|
|
|
31,296
|
|
|
|
|
32,094
|
|
|||
Current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings
and bank overdrafts
|
8
|
(3,381
|
)
|
|
|
|
(1,959
|
)
|
|
|
|
(1,742
|
)
|
|
|
|||
Other
financial liabilities
|
|
(474
|
)
|
|
|
|
(307
|
)
|
|
|
|
(306
|
)
|
|
|
|||
Share buyback liability
|
|
(71
|
)
|
|
|
|
(26
|
)
|
|
|
|
(80
|
)
|
|
|
|||
Trade
and other payables
|
|
(4,474
|
)
|
|
|
|
(4,202
|
)
|
|
|
|
(4,415
|
)
|
|
|
|||
Liabilities
held for sale
|
|
(27
|
)
|
|
|
|
(32
|
)
|
|
|
|
(32
|
)
|
|
|
|||
Corporate tax payables
|
|
(336
|
)
|
|
|
|
(378
|
)
|
|
|
|
(446
|
)
|
|
|
|||
Provisions
|
|
(90
|
)
|
|
|
|
(99
|
)
|
|
|
|
(107
|
)
|
|
|
|||
|
|
|
|
(8,853
|
)
|
|
|
|
(7,003
|
)
|
|
|
|
(7,128
|
)
|
|||
Non-current liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Borrowings
|
8
|
(10,091
|
)
|
|
|
|
(10,596
|
)
|
|
|
|
(10,272
|
)
|
|
|
|||
Other
financial liabilities
|
|
(405
|
)
|
|
|
|
(124
|
)
|
|
|
|
(154
|
)
|
|
|
|||
Other
payables
|
|
(185
|
)
|
|
|
|
(222
|
)
|
|
|
|
(250
|
)
|
|
|
|||
Provisions
|
|
(320
|
)
|
|
|
|
(317
|
)
|
|
|
|
(295
|
)
|
|
|
|||
Deferred
tax liabilities
|
|
(1,896
|
)
|
|
|
|
(2,032
|
)
|
|
|
|
(2,123
|
)
|
|
|
|||
Post
employment benefit liabilities
|
|
(753
|
)
|
|
|
|
(846
|
)
|
|
|
|
(739
|
)
|
|
|
|||
|
|
|
|
(13,650
|
)
|
|
|
|
(14,137
|
)
|
|
|
|
(13,833
|
)
|
|||
Total liabilities
|
|
|
|
(22,503
|
)
|
|
|
|
(21,140
|
)
|
|
|
|
(20,961
|
)
|
|||
Net assets
|
|
|
|
9,230
|
|
|
|
|
10,156
|
|
|
|
|
11,133
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Share
capital
|
|
743
|
|
|
|
|
753
|
|
|
|
|
767
|
|
|
|
|||
Share
premium
|
|
1,351
|
|
|
|
|
1,350
|
|
|
|
|
1,350
|
|
|
|
|||
Other
reserves
|
|
1,930
|
|
|
|
|
2,372
|
|
|
|
|
2,341
|
|
|
|
|||
Retained
earnings
|
|
3,499
|
|
|
|
|
3,886
|
|
|
|
|
4,908
|
|
|
|
|||
Equity attributable to equity shareholders of the parent
company
|
|
|
|
7,523
|
|
|
|
|
8,361
|
|
|
|
|
9,366
|
|
|||
Non-controlling interests
|
|
|
|
1,707
|
|
|
|
|
1,795
|
|
|
|
|
1,767
|
|
|||
Total equity
|
|
|
|
9,230
|
|
|
|
|
10,156
|
|
|
|
|
11,133
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings/(deficit)
|
|
|
|
|
|
|
|||||||||||||
|
|
Sharecapital
|
|
Sharepremium
|
|
Other
reserves
|
|
Own
shares
|
|
Other
retained earnings
|
|
Total
|
|
Equity
attributable to parent company shareholders
|
|
Non-controlling
interests
|
|
Total
equity
|
|||||||||
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|||||||||||
|
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-controllinginterests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(627
|
)
|
|
(627
|
)
|
|
(627
|
)
|
|
(76
|
)
|
|
(703
|
)
|
|
Change
in fair value of put option
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
Share
buyback programme
|
(13
|
)
|
|
—
|
|
|
13
|
|
|
—
|
|
|
(1,355
|
)
|
|
(1,355
|
)
|
|
(1,355
|
)
|
|
—
|
|
|
(1,355
|
)
|
|
Dividends
paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
At 30 June 2019
|
753
|
|
|
1,350
|
|
|
2,372
|
|
|
(2,026
|
)
|
|
5,912
|
|
|
3,886
|
|
|
8,361
|
|
|
1,795
|
|
|
10,156
|
|
|
Profit
for the period
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,865
|
|
|
1,865
|
|
|
1,865
|
|
|
69
|
|
|
1,934
|
|
|
Other
comprehensive income
|
—
|
|
|
—
|
|
|
(452
|
)
|
|
—
|
|
|
(93
|
)
|
|
(93
|
)
|
|
(545
|
)
|
|
(100
|
)
|
|
(645
|
)
|
|
Employee
share schemes
|
—
|
|
|
—
|
|
|
—
|
|
|
74
|
|
|
(35
|
)
|
|
39
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|
Share-based
incentive plans
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
23
|
|
|
23
|
|
|
23
|
|
|
—
|
|
|
23
|
|
|
Share-based
incentive plans in respect of associates
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Shares
issued
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
1
|
|
|
Purchase
of non-controllinginterests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|
(15
|
)
|
|
(10
|
)
|
|
(25
|
)
|
|
Non-controlling
interest in respect of new subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5
|
|
|
5
|
|
|
Change
in fair value of put option
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
Share
buyback programme
|
(10
|
)
|
|
—
|
|
|
10
|
|
|
—
|
|
|
(1,200
|
)
|
|
(1,200
|
)
|
|
(1,200
|
)
|
|
—
|
|
|
(1,200
|
)
|
|
Dividends
paid
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,006
|
)
|
|
(1,006
|
)
|
|
(1,006
|
)
|
|
(52
|
)
|
|
(1,058
|
)
|
|
At 31 December 2019
|
743
|
|
|
1,351
|
|
|
1,930
|
|
|
(1,952
|
)
|
|
5,451
|
|
|
3,499
|
|
|
7,523
|
|
|
1,707
|
|
|
9,230
|
|
|
Six months ended 31 December 2019
|
|
Six
months ended 31 December 2018
|
||||||||
|
£
million
|
|
£
million
|
|
£
million
|
|
£
million
|
||||
Cash
flows from operating activities
|
|
|
|
|
|
|
|
||||
Profit
for the period
|
1,934
|
|
|
|
|
2,067
|
|
|
|
||
Taxation
|
530
|
|
|
|
|
560
|
|
|
|
||
Share
of after tax results of associates and joint ventures
|
(176
|
)
|
|
|
|
(179
|
)
|
|
|
||
Net
finance charges
|
154
|
|
|
|
|
128
|
|
|
|
||
Non-operating
items
|
—
|
|
|
|
|
(146
|
)
|
|
|
||
Operating
profit
|
|
|
2,442
|
|
|
|
|
2,430
|
|
||
Increase in
inventories
|
(85
|
)
|
|
|
|
(245
|
)
|
|
|
||
Increase
in trade and other receivables
|
(1,016
|
)
|
|
|
|
(829
|
)
|
|
|
||
Increase
in trade and other payables and provisions
|
423
|
|
|
|
|
418
|
|
|
|
||
Net
increase in working capital
|
|
|
(678
|
)
|
|
|
|
(656
|
)
|
||
Depreciation,
amortisation and impairment
|
286
|
|
|
|
|
185
|
|
|
|
||
Dividends
received
|
3
|
|
|
|
|
3
|
|
|
|
||
Post
employment payments less amounts included in operating
profit
|
(60
|
)
|
|
|
|
(61
|
)
|
|
|
||
Other
items
|
(5
|
)
|
|
|
|
37
|
|
|
|
||
|
|
|
224
|
|
|
|
|
164
|
|
||
Cash
generated from operations
|
|
|
1,988
|
|
|
|
|
1,938
|
|
||
Interest
received
|
86
|
|
|
|
|
101
|
|
|
|
||
Interest
paid
|
(239
|
)
|
|
|
|
(206
|
)
|
|
|
||
Taxation
paid
|
(547
|
)
|
|
|
|
(229
|
)
|
|
|
||
|
|
|
(700
|
)
|
|
|
|
(334
|
)
|
||
Net
cash inflow from operating activities
|
|
|
1,288
|
|
|
|
|
1,604
|
|
||
Cash
flows from investing activities
|
|
|
|
|
|
|
|
||||
Disposal of
property, plant and equipment and computer software
|
8
|
|
|
|
|
13
|
|
|
|
||
Purchase of
property, plant and equipment and computer software
|
(330
|
)
|
|
|
|
(271
|
)
|
|
|
||
Sale of
businesses and brands
|
—
|
|
|
|
|
419
|
|
|
|
||
Acquisition of
businesses
|
(106
|
)
|
|
|
|
(32
|
)
|
|
|
||
Net
cash (outflow)/inflow from investing activities
|
|
|
(428
|
)
|
|
|
|
129
|
|
||
Cash
flows from financing activities
|
|
|
|
|
|
|
|
||||
Share
buyback programme
|
(1,155
|
)
|
|
|
|
(1,275
|
)
|
|
|
||
Proceeds from issue
of share capital
|
1
|
|
|
|
|
1
|
|
|
|
||
Net
sale of own shares for share schemes
|
33
|
|
|
|
|
25
|
|
|
|
||
Dividends paid to
non-controlling interests
|
(76
|
)
|
|
|
|
(76
|
)
|
|
|
||
Proceeds from
bonds
|
1,289
|
|
|
|
|
1,754
|
|
|
|
||
Purchase of shares
of non-controlling interests
|
(25
|
)
|
|
|
|
(697
|
)
|
|
|
||
Net
movements in other borrowings
|
209
|
|
|
|
|
220
|
|
|
|
||
Equity
dividends paid
|
(1,006
|
)
|
|
|
|
(993
|
)
|
|
|
||
Net
cash outflow from financing activities
|
|
|
(730
|
)
|
|
|
|
(1,041
|
)
|
||
|
|
|
|
|
|
|
|
||||
Net
increase in net cash and cash equivalents
|
|
|
130
|
|
|
|
|
692
|
|
||
Exchange
differences
|
|
|
(32
|
)
|
|
|
|
14
|
|
||
Net
cash and cash equivalents at beginning of the period
|
|
|
721
|
|
|
|
|
693
|
|
||
Net
cash and cash equivalents at end of the period
|
|
|
819
|
|
|
|
|
1,399
|
|
||
|
|
|
|
|
|
|
|
||||
Net
cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
|
950
|
|
|
|
|
1,591
|
|
||
Bank
overdrafts
|
|
|
(131
|
)
|
|
|
|
(192
|
)
|
||
|
|
|
819
|
|
|
|
|
1,399
|
|
Six months ended
|
North America
|
Europeand Turkey
|
Africa
|
Latin America and Caribbean
|
AsiaPacific
|
ISC
|
Eliminateinter- segment sales
|
Totaloperating segments
|
Corporateand other
|
Total
|
||||||||||
31 December 2019
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
||||||||||
Sales
|
2,830
|
|
2,971
|
|
1,212
|
|
893
|
|
2,898
|
|
811
|
|
(811
|
)
|
10,804
|
|
27
|
|
10,831
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
2,395
|
|
1,617
|
|
825
|
|
679
|
|
1,455
|
|
874
|
|
(811
|
)
|
7,034
|
|
27
|
|
7,061
|
|
Acquisitions
and disposals
|
25
|
|
5
|
|
17
|
|
—
|
|
1
|
|
—
|
|
—
|
|
48
|
|
—
|
|
48
|
|
ISC
allocation
|
8
|
|
37
|
|
3
|
|
8
|
|
7
|
|
(63
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Retranslation
to actual exchange rates
|
74
|
|
7
|
|
3
|
|
(7
|
)
|
14
|
|
—
|
|
—
|
|
91
|
|
—
|
|
91
|
|
Net sales
|
2,502
|
|
1,666
|
|
848
|
|
680
|
|
1,477
|
|
811
|
|
(811
|
)
|
7,173
|
|
27
|
|
7,200
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
1,098
|
|
573
|
|
164
|
|
250
|
|
424
|
|
73
|
|
—
|
|
2,582
|
|
(84
|
)
|
2,498
|
|
Acquisitions
and disposals
|
1
|
|
(2
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(1
|
)
|
—
|
|
(1
|
)
|
ISC
allocation
|
11
|
|
37
|
|
3
|
|
12
|
|
10
|
|
(73
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
Fair
value remeasurement of contingent consideration
|
(4
|
)
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
(4
|
)
|
—
|
|
(4
|
)
|
Fair
value remeasurement of biological assets
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
—
|
|
—
|
|
4
|
|
—
|
|
4
|
|
Retranslation
to actual exchange rates
|
14
|
|
7
|
|
(8
|
)
|
(9
|
)
|
(2
|
)
|
—
|
|
—
|
|
2
|
|
2
|
|
4
|
|
Operating profit/(loss) before exceptional items
|
1,120
|
|
615
|
|
159
|
|
257
|
|
432
|
|
—
|
|
—
|
|
2,583
|
|
(82
|
)
|
2,501
|
|
Exceptional
items
|
—
|
|
—
|
|
—
|
|
—
|
|
(59
|
)
|
—
|
|
—
|
|
(59
|
)
|
—
|
|
(59
|
)
|
Operating profit/(loss)
|
1,120
|
|
615
|
|
159
|
|
257
|
|
373
|
|
—
|
|
—
|
|
2,524
|
|
(82
|
)
|
2,442
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
—
|
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(154
|
)
|
|||||||||
Share
of after tax results of associates and joint ventures
|
|
|
|
|
|
|
|
|
|
176
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
2,464
|
|
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 31 December 2019
|
|
Six months ended 31 December 2018
|
||
|
£ million
|
|
£ million
|
||
|
|
|
|
||
Items included in operating profit
|
|
|
|
||
Impairment of Old Tavern brand
|
(59
|
)
|
|
—
|
|
Guaranteed minimum pension equalisation
|
—
|
|
|
(21
|
)
|
|
(59
|
)
|
|
(21
|
)
|
Non-operating items
|
|
|
|
||
Acquisition/sale of businesses
|
|
|
|
||
Step up acquisitions
|
8
|
|
|
—
|
|
Loss on the expected sale of United National Breweries
|
(7
|
)
|
|
(8
|
)
|
Loss on disposal of associate
|
(1
|
)
|
|
—
|
|
Portfolio of 19 brands
|
—
|
|
|
154
|
|
|
—
|
|
|
146
|
|
|
|
|
|
||
Exceptional items before taxation
|
(59
|
)
|
|
125
|
|
|
|
|
|
||
Items included in taxation
|
|
|
|
||
Tax on
exceptional operating items
|
14
|
|
|
4
|
|
Tax on
exceptional non-operating items
|
—
|
|
|
(34
|
)
|
|
14
|
|
|
(30
|
)
|
|
|
|
|
||
Total exceptional items
|
(45
|
)
|
|
95
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
(25
|
)
|
|
95
|
|
Non-controlling
interests
|
(20
|
)
|
|
—
|
|
Total exceptional items
|
(45
|
)
|
|
95
|
|
|
Six months ended 31 December 2019
|
|
Six
months ended 31 December 2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Interest
income
|
122
|
|
|
102
|
|
Fair
value gain on financial instruments
|
24
|
|
|
59
|
|
Total
interest income
|
146
|
|
|
161
|
|
Interest
charges
|
(271
|
)
|
|
(224
|
)
|
Fair
value loss on financial instruments
|
(23
|
)
|
|
(57
|
)
|
Total
interest charges
|
(294
|
)
|
|
(281
|
)
|
Net
interest charges
|
(148
|
)
|
|
(120
|
)
|
|
|
|
|
||
Net
finance income in respect of post employment plans in
surplus
|
13
|
|
|
14
|
|
Hyperinflation
adjustment in respect of Venezuela (a)
|
3
|
|
|
6
|
|
Other
finance income
|
1
|
|
|
—
|
|
Total
other finance income
|
17
|
|
|
20
|
|
Net
finance charge in respect of post employment plans in
deficit
|
(9
|
)
|
|
(12
|
)
|
Unwinding of
discounts
|
(7
|
)
|
|
(8
|
)
|
Interest
charge in respect of direct and indirect tax
|
(5
|
)
|
|
(5
|
)
|
Change
in financial liability (Level 3)
|
(1
|
)
|
|
(2
|
)
|
Other
finance charges
|
(1
|
)
|
|
(1
|
)
|
Total
other finance charges
|
(23
|
)
|
|
(28
|
)
|
Net
other finance charges
|
(6
|
)
|
|
(8
|
)
|
|
6 months to 31 December 2019
|
|
6 months to 31 December 2018
|
||
|
At
estimated exchange rate
|
At
DICOM exchange rate
|
|
At
estimated
exchange
rate
|
At
DICOM
exchange
rate
|
|
2,525,956 VES/£
|
61,213 VES/£
|
|
10,466
VES/£
|
809
VES/£
|
|
£
million
|
£
million
|
|
£
million
|
£
million
|
Net
sales
|
—
|
|
4
|
|
|
—
|
|
1
|
|
Operating
profit
|
—
|
|
11
|
|
|
—
|
|
—
|
|
Other
finance income - hyperinflation adjustment
|
3
|
|
132
|
|
|
6
|
|
72
|
|
Net
cash inflow from operating activities
|
—
|
|
7
|
|
|
—
|
|
1
|
|
Net
assets
|
48
|
|
2,000
|
|
|
65
|
|
843
|
|
|
Carrying value of CGU £ million
|
Headroom £ million
|
1ppt increase indiscount rate £ million
|
2ppt decrease in annual growth rate£ million
|
5ppt decrease in annual growth rateforecast period 2020-2029 £
million
|
|||||
India(i)
|
4,501
|
|
592
|
|
(59
|
)
|
—
|
|
(978
|
)
|
Antiquity
brand(ii)
|
198
|
|
36
|
|
—
|
|
—
|
|
(19
|
)
|
Windsor
Premier brand(iii)
|
607
|
|
6
|
|
(75
|
)
|
(167
|
)
|
—
|
|
|
31 December 2019
|
|
30
June 2019
|
|
31
December 2018
|
|||
|
£
million
|
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|
|||
Raw
materials and consumables
|
322
|
|
|
338
|
|
|
327
|
|
Work in
progress
|
59
|
|
|
46
|
|
|
51
|
|
Maturing
inventories
|
4,358
|
|
|
4,334
|
|
|
4,201
|
|
Finished goods and
goods for resale
|
720
|
|
|
754
|
|
|
697
|
|
|
5,459
|
|
|
5,472
|
|
|
5,276
|
|
|
31 December 2019
|
|
30 June 2019
|
|
31 December 2018
|
|||
|
£ million
|
|
£
million
|
|
£
million
|
|||
|
|
|
|
|
|
|||
Borrowings
due within one year and bank overdrafts
|
(3,381
|
)
|
|
(1,959
|
)
|
|
(1,742
|
)
|
Borrowings
due after one year
|
(10,091
|
)
|
|
(10,596
|
)
|
|
(10,272
|
)
|
Fair
value of foreign currency forwards and swaps
|
39
|
|
|
370
|
|
|
195
|
|
Fair
value of interest rate hedging instruments
|
89
|
|
|
104
|
|
|
20
|
|
Lease liabilities
|
(486
|
)
|
|
(128
|
)
|
|
(144
|
)
|
|
(13,830
|
)
|
|
(12,209
|
)
|
|
(11,943
|
)
|
Cash
and cash equivalents
|
950
|
|
|
932
|
|
|
1,591
|
|
|
(12,880
|
)
|
|
(11,277
|
)
|
|
(10,352
|
)
|
|
Six months ended 31 December 2019
|
|
Six months ended 31 December 2018
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Net increase in cash and cash equivalents before
exchange
|
130
|
|
|
692
|
|
Net
increase in bonds and other borrowings(i)
|
(1,503
|
)
|
|
(1,974
|
)
|
Net increase in net borrowings from cash flows
|
(1,373
|
)
|
|
(1,282
|
)
|
Exchange
differences on net borrowings
|
209
|
|
|
(32
|
)
|
Other
non-cash items(ii)
|
(188
|
)
|
|
53
|
|
Net borrowings at beginning of the period
|
(11,277
|
)
|
|
(9,091
|
)
|
Adoption of IFRS 16
|
(251
|
)
|
|
—
|
|
Net borrowings at end of the period
|
(12,880
|
)
|
|
(10,352
|
)
|
|
31 December 2019
|
|
30
June 2019
|
|
31
December 2018
|
|||
|
|
|
|
|
(restated(i))
|
|||
|
£
million
|
|
£
million
|
|
£
million
|
|||
Derivative
assets
|
379
|
|
|
531
|
|
|
293
|
|
Derivative
liabilities
|
(228
|
)
|
|
(129
|
)
|
|
(145
|
)
|
Valuation
techniques based on observable market input (Level 2)
|
151
|
|
|
402
|
|
|
148
|
|
Financial
assets - other
|
96
|
|
|
86
|
|
|
91
|
|
Financial
liabilities - other
|
(386
|
)
|
|
(401
|
)
|
|
(377
|
)
|
Valuation
techniques based on unobservable market input (Level
3)
|
(290
|
)
|
|
(315
|
)
|
|
(286
|
)
|
|
Six months ended 31 December 2019
|
|
Six months ended 31 December 2018
|
||
|
£ million
|
|
£
million
|
||
Amounts recognised as distributions to equity shareholders in the
period
|
|
|
|
||
Final dividend for the year ended 30 June 2019 of 42.47 pence per
share (2018 - 40.40 pence)
|
1,006
|
|
|
993
|
|
|
£ million
|
|
Brands
|
102
|
|
Working capital
|
(1
|
)
|
Cash
|
2
|
|
Deferred tax liability
|
(19
|
)
|
Fair value of assets and liabilities
|
84
|
|
Goodwill arising on acquisition
|
8
|
|
Step acquisition
|
(23
|
)
|
Consideration payable
|
69
|
|
Satisfied by:
|
|
|
Cash consideration paid
|
27
|
|
Contingent consideration payable
|
42
|
|
|
69
|
|
|
|
|
Cash consideration paid for subsidiaries
|
(27
|
)
|
Cash consideration paid for investments in associates
|
(4
|
)
|
Cash acquired
|
2
|
|
Capital injection to associates
|
(23
|
)
|
Cash consideration paid in respect of prior year
acquisitions
|
(54
|
)
|
Net cash outflow on acquisition of business
|
(106
|
)
|
|
|
|
|
|
|
|
|
|
£ million
|
|
Operating lease commitments at 30 June 2019
|
(321
|
)
|
Leases expiring within a year of 1 July 2019
|
19
|
|
Low value assets
|
11
|
|
Impact of discounting
|
40
|
|
Total additional lease liabilities recognised on adoption of IFRS
16
|
(251
|
)
|
Finance lease liabilities at 30 June 2019
|
(128
|
)
|
Total lease liabilities at 1 July 2019
|
(379
|
)
|
Total lease liabilities at 1 July 2019 - current
|
(107
|
)
|
Total lease liabilities at 1 July 2019 - non-current
|
(272
|
)
|
|
30 June 2019
|
|
IFRS 16 impact
|
|
1 July 2019
|
|||
|
£ million
|
|
£ million
|
|
£ million
|
|||
Non-current assets
|
|
|
|
|
|
|||
Property, plant and equipment
|
4,455
|
|
|
236
|
|
|
4,691
|
|
Other financial assets
|
404
|
|
|
1
|
|
|
405
|
|
Current assets
|
|
|
|
|
|
|||
Trade and other receivables
|
2,694
|
|
|
(2
|
)
|
|
2,692
|
|
|
|
|
|
|
|
|||
Current liabilities
|
|
|
|
|
|
|||
Other financial liabilities
|
(307
|
)
|
|
(64
|
)
|
|
(371
|
)
|
Trade and other payables
|
(4,202
|
)
|
|
13
|
|
|
(4,189
|
)
|
Non-current liabilities
|
|
|
|
|
|
|||
Other
financial liabilities
|
(124
|
)
|
|
(187
|
)
|
|
(311
|
)
|
Provisions
|
(317
|
)
|
|
3
|
|
|
(314
|
)
|
|
|
North Americamillion
|
|
Europeand Turkey million
|
|
Africamillion
|
|
Latin Americaand Caribbean million
|
|
AsiaPacific million
|
|
Corporatemillion
|
|
Totalmillion
|
|||||||
Volume (equivalent units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
25.6
|
|
|
25.7
|
|
|
17.6
|
|
|
12.4
|
|
|
49.2
|
|
|
—
|
|
|
130.5
|
|
Disposals(iii)
|
|
(1.3
|
)
|
|
—
|
|
|
(0.3
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1.6
|
)
|
2018 adjusted
|
|
24.3
|
|
|
25.7
|
|
|
17.3
|
|
|
12.4
|
|
|
49.2
|
|
|
—
|
|
|
128.9
|
|
Organic movement
|
|
0.7
|
|
|
(0.3
|
)
|
|
0.3
|
|
|
(0.1
|
)
|
|
(0.4
|
)
|
|
—
|
|
|
0.2
|
|
Disposals(iii)
|
|
1.1
|
|
|
—
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
2019 reported
|
|
26.1
|
|
|
25.4
|
|
|
17.9
|
|
|
12.3
|
|
|
48.8
|
|
|
—
|
|
|
130.5
|
|
Organic movement %
|
|
3
|
|
|
(1
|
)
|
|
2
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America£ million
|
|
Europeand Turkey £ million
|
|
Africa£ million
|
|
Latin Americaand Caribbean £ million
|
|
AsiaPacific £ million
|
|
Corporate£ million
|
|
Total£ million
|
|||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
2,667
|
|
|
2,879
|
|
|
1,160
|
|
|
864
|
|
|
2,765
|
|
|
28
|
|
|
10,363
|
|
Exchange(i)
|
|
(24
|
)
|
|
(28
|
)
|
|
(4
|
)
|
|
1
|
|
|
5
|
|
|
—
|
|
|
(50
|
)
|
Disposals(iii)
|
|
(81
|
)
|
|
(3
|
)
|
|
(42
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(128
|
)
|
2018 adjusted
|
|
2,562
|
|
|
2,848
|
|
|
1,114
|
|
|
864
|
|
|
2,769
|
|
|
28
|
|
|
10,185
|
|
Organic movement
|
|
150
|
|
|
107
|
|
|
64
|
|
|
36
|
|
|
85
|
|
|
(1
|
)
|
|
441
|
|
Acquisitions and disposals(iii)
|
|
34
|
|
|
5
|
|
|
30
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
70
|
|
Exchange(i)
|
|
84
|
|
|
11
|
|
|
4
|
|
|
(7
|
)
|
|
43
|
|
|
—
|
|
|
135
|
|
2019 reported
|
|
2,830
|
|
|
2,971
|
|
|
1,212
|
|
|
893
|
|
|
2,898
|
|
|
27
|
|
|
10,831
|
|
Organic movement %
|
|
6
|
|
|
4
|
|
|
6
|
|
|
4
|
|
|
3
|
|
|
(4
|
)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America£ million
|
|
Europeand Turkey £ million
|
|
Africa£ million
|
|
Latin Americaand Caribbean £ million
|
|
AsiaPacific £ million
|
|
Corporate£ million
|
|
Total£ million
|
|||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
2,356
|
|
|
1,633
|
|
|
821
|
|
|
672
|
|
|
1,398
|
|
|
28
|
|
|
6,908
|
|
Exchange(i)
|
|
(20
|
)
|
|
(20
|
)
|
|
(4
|
)
|
|
2
|
|
|
3
|
|
|
—
|
|
|
(39
|
)
|
Disposals(iii)
|
|
(62
|
)
|
|
(1
|
)
|
|
(29
|
)
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(94
|
)
|
2018 adjusted
|
|
2,274
|
|
|
1,612
|
|
|
788
|
|
|
673
|
|
|
1,400
|
|
|
28
|
|
|
6,775
|
|
Organic movement
|
|
129
|
|
|
42
|
|
|
40
|
|
|
14
|
|
|
62
|
|
|
(1
|
)
|
|
286
|
|
Acquisitions and disposals(iii)
|
|
25
|
|
|
5
|
|
|
17
|
|
|
—
|
|
|
1
|
|
|
—
|
|
|
48
|
|
Exchange(i)
|
|
74
|
|
|
7
|
|
|
3
|
|
|
(7
|
)
|
|
14
|
|
|
—
|
|
|
91
|
|
2019 reported
|
|
2,502
|
|
|
1,666
|
|
|
848
|
|
|
680
|
|
|
1,477
|
|
|
27
|
|
|
7,200
|
|
Organic movement %
|
|
6
|
|
|
3
|
|
|
5
|
|
|
2
|
|
|
4
|
|
|
(4
|
)
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
383
|
|
|
260
|
|
|
91
|
|
|
110
|
|
|
208
|
|
|
2
|
|
|
1,054
|
|
Exchange
|
|
(2
|
)
|
|
(7
|
)
|
|
—
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
2018 adjusted
|
|
381
|
|
|
253
|
|
|
91
|
|
|
111
|
|
|
208
|
|
|
2
|
|
|
1,046
|
|
Organic movement
|
|
22
|
|
|
11
|
|
|
5
|
|
|
2
|
|
|
22
|
|
|
—
|
|
|
62
|
|
Acquisitions(iii)
|
|
1
|
|
|
1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2
|
|
Exchange
|
|
—
|
|
|
3
|
|
|
1
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
6
|
|
2019 reported
|
|
404
|
|
|
268
|
|
|
97
|
|
|
113
|
|
|
232
|
|
|
2
|
|
|
1,116
|
|
Organic movement %
|
|
6
|
|
|
4
|
|
|
5
|
|
|
2
|
|
|
11
|
|
|
—
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
1,101
|
|
|
614
|
|
|
153
|
|
|
254
|
|
|
409
|
|
|
(80
|
)
|
|
2,451
|
|
Exchange(ii)
|
|
(7
|
)
|
|
(13
|
)
|
|
(3
|
)
|
|
1
|
|
|
2
|
|
|
1
|
|
|
(19
|
)
|
Disposals(iii)
|
|
(41
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(44
|
)
|
2018 adjusted
|
|
1,053
|
|
|
600
|
|
|
148
|
|
|
255
|
|
|
411
|
|
|
(79
|
)
|
|
2,388
|
|
Organic movement
|
|
56
|
|
|
10
|
|
|
19
|
|
|
7
|
|
|
23
|
|
|
(5
|
)
|
|
110
|
|
Acquisitions and disposals(iii)
|
|
1
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1
|
)
|
Fair value remeasurement of contingent considerations and equity
option
|
|
(4
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
Fair value remeasurement of biological assets
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
—
|
|
|
—
|
|
|
4
|
|
Exchange(ii)
|
|
14
|
|
|
7
|
|
|
(8
|
)
|
|
(9
|
)
|
|
(2
|
)
|
|
2
|
|
|
4
|
|
2019 reported
|
|
1,120
|
|
|
615
|
|
|
159
|
|
|
257
|
|
|
432
|
|
|
(82
|
)
|
|
2,501
|
|
Organic movement %
|
|
5
|
|
|
2
|
|
|
13
|
|
|
3
|
|
|
6
|
|
|
(6
|
)
|
|
5
|
|
Organic operating margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019
|
|
46.2
|
%
|
|
36.9
|
%
|
|
20.2
|
%
|
|
38.1
|
%
|
|
29.7
|
%
|
|
n/a
|
|
35.4
|
%
|
|
2018
|
|
46.3
|
%
|
|
37.2
|
%
|
|
18.8
|
%
|
|
37.9
|
%
|
|
29.4
|
%
|
|
n/a
|
|
35.2
|
%
|
|
Margin improvement / (decline) (bps)
|
|
(16
|
)
|
|
(34
|
)
|
|
139
|
|
|
25
|
|
|
33
|
|
|
n/a
|
|
13
|
|
|
Volume
|
|
Sales
|
|
Net sales
|
|
Marketing
|
|
Operatingprofit
|
|||||
|
equ. units million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|||||
Six months ended 31 December 2018
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio of 19
brands
|
(1.3
|
)
|
|
(88
|
)
|
|
(67
|
)
|
|
—
|
|
|
(42
|
)
|
South
African ready to drink
|
(0.3
|
)
|
|
(38
|
)
|
|
(25
|
)
|
|
—
|
|
|
—
|
|
South
African cider
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(1.6
|
)
|
|
(128
|
)
|
|
(94
|
)
|
|
—
|
|
|
(44
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Six months ended 31 December 2019
|
|
|
|
|
|
|
|
|
|
|||||
Acquisition
|
|
|
|
|
|
|
|
|
|
|||||
Seedlip
and Aecorn
|
—
|
|
|
5
|
|
|
5
|
|
|
2
|
|
|
(3
|
)
|
|
—
|
|
|
5
|
|
|
5
|
|
|
2
|
|
|
(3
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Supply
contracts in respect of the 19 brands sold to Sazerac
|
1.1
|
|
|
35
|
|
|
26
|
|
|
—
|
|
|
2
|
|
South
African ready to drink
|
0.3
|
|
|
30
|
|
|
17
|
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
65
|
|
|
43
|
|
|
—
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions and disposals
|
1.4
|
|
|
70
|
|
|
48
|
|
|
2
|
|
|
(1
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||
|
|
|
£ million
|
|
£ million
|
||
|
|
|
|
|
|
||
Profit
attributable to equity shareholders of the parent
company
|
|
|
1,865
|
|
|
1,976
|
|
Exceptional
operating and non-operating items attributable to equity
shareholders of the parent company
|
|
|
33
|
|
|
(125
|
)
|
Tax in
respect of exceptional operating and non-operating items
attributable to equity shareholders of the parent
company
|
|
|
(8
|
)
|
|
30
|
|
|
|
|
1,890
|
|
|
1,881
|
|
|
|
|
|
|
|
||
Weighted average number of shares
|
|
|
million
|
|
million
|
||
Shares
in issue excluding own shares
|
|
|
2,356
|
|
|
2,442
|
|
Dilutive
potential ordinary shares
|
|
|
10
|
|
|
10
|
|
|
|
|
2,366
|
|
|
2,452
|
|
|
|
|
|
|
|
||
|
|
|
pence
|
|
pence
|
||
Basic earnings per share before exceptional items
|
|
|
80.2
|
|
|
77.0
|
|
|
|
|
|
|
|
||
Diluted earnings per share before exceptional items
|
|
|
79.9
|
|
|
76.7
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Net cash inflow from operating activities
|
1,288
|
|
|
1,604
|
|
Disposal
of property, plant and equipment and computer software
|
8
|
|
|
13
|
|
Purchase
of property, plant and equipment and computer software
|
(330
|
)
|
|
(271
|
)
|
Free cash flow
|
966
|
|
|
1,346
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Operating
profit
|
2,442
|
|
|
2,430
|
|
Exceptional
operating items
|
59
|
|
|
21
|
|
Profit
before exceptional operating items attributable to non-controlling
interests
|
(89
|
)
|
|
(91
|
)
|
Share
of after tax results of associates and joint ventures
|
176
|
|
|
179
|
|
Tax
at the tax rate before exceptional items of 21.6% (2018 –
21.2%)
|
(559
|
)
|
|
(538
|
)
|
|
2,029
|
|
|
2,001
|
|
|
|
|
|
||
Average
net assets (excluding net post employment
assets/liabilities)
|
9,520
|
|
|
11,279
|
|
Average
non-controlling interests
|
(1,751
|
)
|
|
(1,766
|
)
|
Average
net borrowings
|
12,204
|
|
|
9,722
|
|
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
|
23,174
|
|
|
22,436
|
|
|
|
|
|
||
Return
on average total invested capital
|
17.5
|
%
|
|
17.8
|
%
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Borrowings due within one year
|
3,381
|
|
|
1,742
|
|
Borrowings due after one year
|
10,091
|
|
|
10,272
|
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(128
|
)
|
|
(215
|
)
|
Lease liabilities
|
486
|
|
|
144
|
|
Less: Cash and cash equivalents
|
(950
|
)
|
|
(1,591
|
)
|
Net borrowings
|
12,880
|
|
|
10,352
|
|
Post employment benefit liabilities before tax
|
753
|
|
|
739
|
|
Adjusted net borrowings
|
13,633
|
|
|
11,091
|
|
|
|
|
|
||
|
|
|
|
||
Operating profit
|
4,054
|
|
|
3,931
|
|
Depreciation, amortisation and impairment (excluding exceptional
items)
|
416
|
|
|
366
|
|
Share of after tax results of associates and joint
ventures
|
309
|
|
|
320
|
|
Exceptional impairment
|
59
|
|
|
128
|
|
Non-operating items
|
(2
|
)
|
|
146
|
|
EBITDA
|
4,836
|
|
|
4,891
|
|
Exceptional operating items (excluding impairment)
|
53
|
|
|
21
|
|
Non-operating items
|
2
|
|
|
(146
|
)
|
Adjusted EBITDA
|
4,891
|
|
|
4,766
|
|
|
|
|
|
||
|
|
|
|
||
Adjusted net borrowings to adjusted EBITDA
|
2.8
|
|
|
2.3
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Tax
before exceptional items (a)
|
544
|
|
|
530
|
|
Tax in
respect of exceptional items
|
(14
|
)
|
|
30
|
|
Taxation
on profit (b)
|
530
|
|
|
560
|
|
|
|
|
|
||
Profit
from operations before taxation and exceptional items
(c)
|
2,523
|
|
|
2,502
|
|
Non-operating
items
|
—
|
|
|
146
|
|
Exceptional operating items
|
(59
|
)
|
|
(21
|
)
|
Profit
before taxation (d)
|
2,464
|
|
|
2,627
|
|
|
|
|
|
||
Tax rate before exceptional items (a/c)
|
21.6
|
%
|
|
21.2
|
%
|
Tax
rate from operations after exceptional items (b/d)
|
21.5
|
%
|
|
21.3
|
%
|
From the UK:
|
+44 (0)330 027 1446
|
From the UK (free call):
|
0800
756 3333
|
From the USA:
|
+1 334 777 6978
|
From the USA (free call):
|
800 367
2403
|
From the UK:
|
+44 (0) 20 7660 0134
|
From the UK (free call):
|
0808
101 1153
|
From the USA:
|
+1 719 457 0820
|
From the USA (free call):
|
888 203
1112
|
Investor enquiries to:
|
Andy Ryan
|
+44 (0) 20 8978 6504
|
|
Luke McFarland
|
+44 (0) 20 8978 6019
|
|
Vinod Rao
|
+44 (0) 20 8978 2402
|
|
|
|
|
|
|
Media enquiries to:
|
Jessica Rouleau
|
+44 (0) 7925 642 561
|
|
Rebecca Perry
|
+44 (0) 7590 809 101
|
|
Dominic Redfearn
|
+44 (0) 7971 977 759
|
|
Greg Dawson
|
+44 (0) 7568 131 101
|
|
|
|
|
Diageo plc
|
|
(Registrant)
|
|
|
Date:
30 January 2020
|
|
|
|
|
By:___/s/
James Edmunds
|
|
|
|
James Edmunds
|
|
Deputy Company Secretary
|