Financial fact-sheet: Q1 2009 Who we arefiles.investis.com/cadbury_ir/quarterly_factsheeta.pdf ·...

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Who we are Note: all market information sourced from Euromonitor Q1 2009 results highlights FY 2008: Headline financials Re- presented Reported Currency Constant Currency 2 £m 2008 2007 Growth % Growth % Revenue 5,384 4,699 +15 +6 638 473 +35 +22 (250) (195) 388 278 559 430 +30 +17 400 254 (4) 258 24.9p 14.7p 22.8p 7.0p 22.6p 19.4p 29.8p 23.0p +30 +16 16.4p 15.5p +6 Full Year results highlights 2008 Base-business revenue growth by busienss unit 2008 Revenue growth by category and focus brands 2008 Revenue growth: emerging and developed markets 2008 revenues by region 2008 revenues by category 2008 revenues by emerging and developed markets Underlying Profit from Operations 1 Restructuring & other non-underlying items Profit from Operations Underlying Profit before Tax 1 Financial fact-sheet: Q1 2009 Dividend per share Underlying EPS Continuing Ops 1 Reported EPS Continuing Ops Reported EPS Continuing & Discontinued Ops Proforma EPS – Continuing Ops 3 Profit before Tax Discontinued Operations B&I 24% MEA 7% Europe 20% North America 22% South America 8% Asia 6% Pacific 13% Chocolate 46% Gum 33% Candy 21% Emerging 37% Developed 63% 6% 10% 6% 10% 6% 9% 0% 2% 4% 6% 8% 10% 12% Chocolate Gum Candy All Focus 12% 4% 12% 6% 0% 2% 4% 6% 8% 10% 12% 14% Emerging Developed All Focus 4.5% 14.3% 3.8% 7.4% 17.6% 16.4% 1.5% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% B&I MEA Europe N. America S. America Asia Pacific Notes: Please see notes as set out on page 2 of the full results statement of 25 February 2009 Cadbury Makes Further Progress in First Quarter with Guidance for 2009 Unchanged First Quarter Highlights • Revenue growth of 2% in constant currency; up 11% in reported currency o Strong growth in chocolate, up 7%, led by a very good Easter in the UK with over 20% growth for Cadbury Creme Egg and traditional shell eggs o Soft start for gum and Halls, led by trade de-stocking o Good growth in the UK and emerging markets offset weaker performances in North America and Europe • Ongoing delivery of Vision into Action cost savings in line with our expectations o Implementation of streamlined organisation completed on target o Consultation started on gum factory reconfiguration in Spain and Turkey o Further restructuring of Cadbury Nigeria focused on delivering margin improvements • Strong financial position with secure long-term financing o Disposal of Australia Beverages completed on 3 April 2009. Net proceeds of approximately GBP 475m will be used to redeem Euro 600m bond due in June 2009 o Issuance of five year GBP 300m bond in March • Guidance for the year unchanged o Revenue growth around the lower end of our 4-6% goal range with good margin progress in line with expectations Todd Stitzer, Cadbury’s CEO said: “We made further progress in the first quarter, despite cycling strong prior year comparatives. A strong chocolate performance and good growth in emerging markets were partially offset by customer de-stocking and softer demand in North America and Europe. Our Vision into Action plan continues to deliver growth, efficiency and capability benefits, with strong innovation and significant cost savings expected in 2009. As a result, we reconfirm our guidance to deliver revenue growth around the lower end of our 4-6% goal range and to make good progress toward our goal of mid-teens margins by 2011.” Except where stated, all percentages are calculated using constant currency • Base business revenues up 7%; strong growth across emerging markets and focus brands • Underlying margins up 150 bps driven by Vision into Action cost reduction initiatives • Strong financial performance • Transformation of the business into a category-led pure-play confectionery company

Transcript of Financial fact-sheet: Q1 2009 Who we arefiles.investis.com/cadbury_ir/quarterly_factsheeta.pdf ·...

Page 1: Financial fact-sheet: Q1 2009 Who we arefiles.investis.com/cadbury_ir/quarterly_factsheeta.pdf · Cadbury Makes Further Progress in First Quarter with Guidance for 2009 Unchanged

Who we are

Note: all market information sourced from Euromonitor

Q1 2009 results highlights FY 2008: Headline financials

Re-

presented

Reported

Currency

Constant

Currency 2

£m 2008 2007 Growth % Growth %

Revenue 5,384 4,699 +15 +6

638 473 +35 +22

(250) (195)

388 278

559 430 +30 +17

400 254

(4) 258

24.9p 14.7p

22.8p 7.0p

22.6p 19.4p

29.8p 23.0p +30 +16

16.4p 15.5p +6

Full Year results highlights

2008 Base-business revenue growth by busienss unit 2008 Revenue growth by category and focus brands 2008 Revenue growth: emerging and developed markets

2008 revenues by region 2008 revenues by category 2008 revenues by emerging and developed markets

Underlying Profit from Operations1

Restructuring & other non-underlying

items

Profit from Operations

Underlying Profit before Tax 1

Financial fact-sheet: Q1 2009

Dividend per share

Underlying EPS Continuing Ops1

Reported EPS Continuing Ops

Reported EPS Continuing &

Discontinued Ops

Proforma EPS – Continuing Ops3

Profit before Tax

Discontinued Operations

B&I

24%

MEA

7%

Europe

20%

North

America

22%

South

America

8%

Asia

6%

Pacific 13%

Chocolate

46%

Gum

33%

Candy

21%

Emerging

37%

Developed

63%

6%

10%

6%

10%

6%

9%

0%

2%

4%

6%

8%

10%

12%

Chocolate Gum Candy

All Focus

12%

4%

12%

6%

0%

2%

4%

6%

8%

10%

12%

14%

Emerging Developed

All Focus

4.5%

14.3%

3.8%

7.4%

17.6%16.4%

1.5%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

18.0%

20.0%

B&I MEA Europe N.

America

S.

America

Asia Pacific

Notes: Please see notes as set out on page 2 of the full results statement of 25 February 2009

Cadbury Makes Further Progress in First Quarter with Guidance for 2009 Unchanged

First Quarter Highlights

• Revenue growth of 2% in constant currency; up 11% in reported currency

o Strong growth in chocolate, up 7%, led by a very good Easter in the UK with over 20% growth for Cadbury

Creme Egg and traditional shell eggs

o Soft start for gum and Halls, led by trade de-stocking

o Good growth in the UK and emerging markets offset weaker performances in North America and Europe

• Ongoing delivery of Vision into Action cost savings in line with our expectations

o Implementation of streamlined organisation completed on target

o Consultation started on gum factory reconfiguration in Spain and Turkey

o Further restructuring of Cadbury Nigeria focused on delivering margin improvements

• Strong financial position with secure long-term financing

o Disposal of Australia Beverages completed on 3 April 2009. Net proceeds of approximately GBP 475m will be

used to redeem Euro 600m bond due in June 2009

o Issuance of five year GBP 300m bond in March

• Guidance for the year unchanged

o Revenue growth around the lower end of our 4-6% goal range with good margin progress in line with

expectations

Todd Stitzer, Cadbury’s CEO said: “We made further progress in the first quarter, despite cycling strong prior year

comparatives. A strong chocolate performance and good growth in emerging markets were partially offset by

customer de-stocking and softer demand in North America and Europe. Our Vision into Action plan continues to

deliver growth, efficiency and capability benefits, with strong innovation and significant cost savings expected in

2009. As a result, we reconfirm our guidance to deliver revenue growth around the lower end of our 4-6% goal

range and to make good progress toward our goal of mid-teens margins by 2011.”

Except where stated, all percentages are calculated using constant currency

• Base business revenues up 7%; strong growth across emerging markets and focus brands

• Underlying margins up 150 bps driven by Vision into Action cost reduction initiatives

• Strong financial performance

• Transformation of the business into a category-led pure-play confectionery company

Page 2: Financial fact-sheet: Q1 2009 Who we arefiles.investis.com/cadbury_ir/quarterly_factsheeta.pdf · Cadbury Makes Further Progress in First Quarter with Guidance for 2009 Unchanged

Our Vision into Action Performance scorecardPerformance scorecard

Fewer, Faster, Bigger, Better Balance Sheet

Focus brands Focus markets Focus customers 31-Dec-07 31-Dec-08 31-Dec-08 2007 2008

% 2008 sales 49 % 2008 sales 70 % 2008 sales 14 pro forma(1)

FY sales growth 8.0% FY sales growth 7.6% FY sales growth 8.0% Net debt 3,219 1,887 1,411 Assets £223m £17m

Interest cover 7.6x 7.6x 7.2x Liabilities £(143)m £(275)m

Cadbury Dairy Milk UK Wal*Mart Net debt / EBITDA 2.5x 2.1x 1.7x Net £80m £(258)m

Green & Blacks US Carrefour P&L pension credit £30m £27m

Flake Australia Tesco

Crème Egg France Metro

Halls Japan Costco Forthcoming events Recent announcements

TNCC Mexico 7-11

Eclairs South Africa Lidl 18-Jun-09 H1 Trading update 14-Oct-08 Q3 IMS: 3Q revenue +6%, outlook unchanged

Trident Brazil 29-Jul-09 H1 results 16-Dec-08 Trading update: reconfirms strong profit growth in 2008

Dentyne Russia 21-Oct-09 Q3 IMS 16-Dec-08 Appointment of Andrew Bonfield as CFO designate

Clorets India 15-Dec-09 FY trading update 24-Dec-08 Agreement for sale of Australia Beverages for £550m

Bubbas Turkey All dates subject to change 25-Feb-09 FY08 results: Strong growth in sales, margins and earnings

Hollywood China 05-Mar-09 GBP300m bond issued: 5-year maturity, 5.375% coupon

Stimorol 03-Apr-09 Completion of sale of Australia Beverages for £550m

Contact information Share information

Senior management Share price performance Cadbury relative share price performance demerger to 29 April 2009

Roger Carr Chairman

Todd Stitzer Chief Executive Officer

Andrew Bonfield Chief Financial Officer

Average price 580p 539p

Registered office +44 (0) 1895 615 000 2008 high 705p 619p

Cadbury House www.cadbury.com 2008 low 453p 487p

Sanderson Road Cadbury return -22% -16%

Uxbridge, UB8 1DH FTSE 100 return -33% -6%

United Kingdom FTSE Euro food producers -27% -10%

Investor Relations +44 (0) 1895 615 124 Listings Reuters Bloomberg

John Dawson IR Director London Stock Exchange 10p ords CBRY-LN CBRY

Rachel Stevens, Basak Kotler IR Managers New York Stock Exchange ADRs CBY-N CBY-N

Debbie Holmes IR Executive

www.cadburyinvestors.com/cadbury_ir * Demerger of DPSG from Cadbury effective on 7 May 2008

Financial fact-sheet: Q1 2009

Pension assets on

balance sheet

Demerger

to

29/04/09*

(1) pro forma on basis that proceeds from Australia Beverages received

and EBITDA adjusted

2009 to

29/04/09

Choc

Candy

Gum

Developed

markets

Emerging

markets

50

60

70

80

90

100

110

May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09Mar-09 Apr-09

Cadbury FTSE 100 Food Producers