Professional Documents
Culture Documents
Letter to Shareowners
Dear Shareowner,
The focus on innovation and Smart Variety has provided the main
impetus for the acceleration in sales growth experienced by the Group
over the last 12 months, both in beverages and confectionery. In the
first half of 2005:
● Innovation activity included:
1 – Launching centre-filled gum in Canada, Greece, Spain, Sweden
and Switzerland, leveraging strong local brand equities in each market.
2 – Extending the Plus concept in the US (fortified, low calorie
beverages) from 7 UP into the Mott’s brand.
2 Financial Rviewe
Half Year Results Base Acquisitions/ 2004 Business Disposals Exchange
2005 Revenue £m 2,954 173 (1) 1 3,127 Underlying Profit from
Operations £m 427 28 1 (5) 451 Profit from Operations £m 389 37 1
(5) 422 Underlying Operating Profit Margin % 14.5% +10bps – –20bps
14.4% Operating Profit Margin % 13.2% +40bps – –10bps
13.5%Underlying figures exclude brand intangible amortisation,
restructuring costs, non-trading items and the impact of fair value
accounting under IAS 39. A full reconciliation between underlying and
reported measures is included within the segmental .Cadbury
Schweppes adopted International Financial Reporting Standards (IFRS)
from 3 January 2005, having previously reported its financial results
under UK GAAP. The change to IFRS is a requirement for all companies
listed in the European Union. Further details are included in Note 1 to
the financial statements.
Financial Statements
Consolidated Income Statement for the 24 weeks ended 19 June
2005(unaudited)2005 2004 2004 Half year Half year Full year
(unaudited) (unaudited) Notes m m m Revenue 3,127 2,954 6,738
Trading costs (2,667) (2,527) (5,668) Restructuring costs 2 (33) (39)
(166) Amortisation of brand intangibles (3) (3) (7) (Loss)/profit on non-
trading items 3 (2) 4 19 Profit from Operations 422 389 916 Share of
result in associates 11 12 21 Profit before Financing and Taxation 433
401 937 Investment income 4 16 21 48 Finance costs 5 (105) (110)
(253) Profit before Taxation 344 312 732 Taxation 6 (100) (82) (185)
Profit for the period 244 230 547 Attributable to: Equity holders of the
parent 237 220 525 Minority interests 7 10 22 244 230 547 Earnings
per ordinary share of 12.5p Basic 8 11.6p 10.9p 25.9p Diluted 8 11.5p
10.8p 25.7p £££
Profit from Operating profit from Underlying 2004 Half year Revenue operations margin
operations margin (unaudited) £m £m % £m %
Americas Beverages 21 1 1 – n/ 22
3 2 a 6
Americas 47 8 1 – n/ 56
Confectionery a
EMEA 12 5 – – n/ 13
7 a 2
Europe Beverages 46 4 – (4) n/ 46
a
Asia Pacific 35 5 1 – n/ 41
a
(4 n/
468 34 3 501
) a
Central (79 5 – – n/ (74
) a )
(4 n/
389 39 3 427
) a
Introduction
We have been instructed by the Company to review the financial
information for the 24 weeks ended 19 June 2005 which comprises the
consolidated income statement, consolidated statement of recognised
income and expense, consolidated balance sheet, consolidated cash
flow statement, segmental reporting and associated notes 1 to 16. We
have read the other information contained in the interim report and
considered whether it contains any apparent misstatements or
material inconsistencies with the financial information. This report is
made solely to the Company in accordance with Bulletin 1999/4 issued
by the Auditing Practices Board. Our work has been undertaken so that
we might state to the Company those matters we are required to state
to them in an independent review report and for no other purpose. To
the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company, for our review work,
for this report, or for the conclusions we have formed.
Directors' responsibilities
The interim report, including the financial information contained
therein, is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the interim
report in accordance with the Listing Rules of the Financial Services
Authority which require that the accounting policies and presentation
applied to the interim figures are consistent with those applied in
preparing the preceding annual accounts except where any changes,
and the reasons for them, are disclosed.
BALNCE SHEET
TOTAL LIABILITIES (7,58 (97 (7,67
0) ) 7)
(26
NET ASSETS 2,300 2,274
)
EQUITY
Share capital 259 259
Share premium account 1,09 1,098
8
Other reserves (168 (168)
)
Retained earnings 882 (26 856
)
Equity attributable to equity holders of the (26
2,071 2,045
parent )
Minority interest 229 229
The story of Cadbury Dairy Milk started way back in 1905 at Bournville, U.K., but
the journey with chocolate lovers in India began in 1948.The pure taste of
Cadbury Dairy Milk is the taste most Indians crave for when they think of
Cadbury Dairy Milk.The variants Fruit & Nut, Crackle and Roast Almond,
combine the classic taste of Cadbury Dairy Milk with a variety of ingredients and
are very popular amongst teens & adults. Recently, Cadbury Dairy Milk Desserts
was launched, specifically to cater to the urge for 'something sweet' after
meals.Cadbury Dairy Milk has exciting products on offer - Cadbury Dairy Milk
Wowie, chocolate with Disney characters embossed in it, and Cadbury Dairy Milk
2 in 1, a delightful combination of milk chocolate and white chocolate. Giving
consumers an exciting reason to keep coming back into the fun filled world of
Cadbury.
Our Journey:
Cadbury Dairy Milk has been the market leader in the chocolate category for years. And
has participated and been a part of every Indian's moments of happiness, joy and
celebration. Today, Cadbury Dairy Milk alone holds 30% value share of the Indian
chocolate market.In the early 90's, chocolates were seen as 'meant for kids', usually a
reward or a bribe for children. In the Mid 90's the category was re-defined by the very
popular `Real Taste of Life' campaign, shifting the focus from `just for kids' to the `kid in
all of us'. It appealed to the child in every adult. And Cadbury Dairy Milk became the
perfect expression of 'spontaneity' and 'shared good feelings'.
ASSIGENMENT
Of
PROJECT MANAGEMENT