Report & Accounts 2005
Total Page:16
File Type:pdf, Size:1020Kb
Cadbury Schweppes plc Invest Innovate Execute Report & Accounts 2005 Report & Accounts www.cadburyschweppes.com Cadbury Schweppes plc 25 Berkeley Square, London W1J 6HB Telephone: +44 20 7409 1313 Fax: +44 20 7830 5200 Report & Accounts 2005 Contents Glossary Description of Business 1 Terms used in this Report & Accounts US equivalent or brief description Directors’ Report 27 Allotted Issued Associated undertaking Generally a 20% – 50% owned investee Corporate Governance Report 33 Called-up share capital Ordinary shares, issued and fully paid Capital allowances Tax term equivalent to US tax depreciation allowances Directors’ Remuneration Report 41 Cash at bank Cash Creditors Accounts payable/payables Operating and Financial Review 57 Creditors: Amounts falling due after more than one year Long-term liabilities Creditors: Amounts falling due within one year Current liabilities Financial Record 79 Debtors Accounts receivable/receivables Financial Statements 85 Fair values Current values Finance lease Capital lease Financial Statements for Cadbury Schweppes plc 163 Financial year Fiscal year Freehold Ownership with absolute rights in perpetuity Shareowner Information 175 Freehold land Land owned Gearing Leverage Index 182 Group, or consolidated accounts Consolidated financial statements Interest receivable and Investment revenue Interest income Glossary Inside Back Cover Interest payable and Finance costs Interest expense Loan capital Long-term debt Pension scheme Pension plan Profit Income (or earnings) Registered Office and Registrars Profit and loss account (reserve) Retained earnings Group Headquarters Computershare Investor Services PLC, Profit and loss account Income statement 25 Berkeley Square, London W1J 6HB, UK P. O. Box 82, Profit attributable to ordinary shareholders Net income Registered in England and Wales No. 52457 The Pavilions, Reconciliation of movements in shareholders' funds Statement of changes in stockholders' equity Telephone Number: 020 7409 1313 Bridgwater Road, Region Business segment Bristol BS99 7NH, UK Reserves Stockholders' equity other than capital stock Website: www.cadburyschweppes.com Telephone Number: 0870 873 5803 Share capital Ordinary shares, capital stock or common stock issued and Fax Number: 0870 703 6103 fully paid Group Secretary Email: [email protected] Share option Stock option Hester Blanks Share premium account Additional paid-in capital relating to proceeds of sale of stock in excess of par value or paid-in surplus (not distributable) Senior Independent Shares in issue Shares outstanding Non-Executive Director Shareholders' funds Stockholders' equity Interested persons who wish to communicate with Stocks Inventories the Non-Executive Directors may do so by writing Tangible fixed assets Property, plant and equipment to Roger Carr at the Company’s registered office. Turnover Revenues (or sales) Financial Calendar Final Dividend for 2005 Interim Dividend for 2006 Ordinary Shares © Cadbury Schweppes plc 2006 The Company’s commitment to environmental issues has been reflected in The Company was incorporated in England as a limited company on 6 May the production and dispatch of this Report & Accounts. All paper used in the Announcement of results 21 February 2006 2 August 2006 1897, under the name of Schweppes Limited. On 28 March 1969 it production of this report is printed on Revive Special Silk. Made in Spain, the Ex-dividend date 26 April 2006 20 September 2006 changed its name to Cadbury Schweppes Limited and on 27 November paper comprises virgin fibre, de-inked post-consumer waste and mill broke. Record date 28 April 2006 22 September 2006 1981, it re-registered as Cadbury Schweppes public limited company. The Manufactured at a mill that has been awarded the ISO14001 certificate for Dividend payment 26 May 2006 20 October 2006 Company is subject to the laws of England and is domiciled in England. environmental management. Pulps used are elemental chlorine free. For enquiries regarding shareholdings that are not appropriate for either the The Annual General Meeting of the Company is on 18 May 2006. The Notice of Meeting, details of the Registrars or the ADR Depositary, please contact the Group Secretary. business to be transacted and arrangements for the Meeting are contained in the separate Annual General For enquiries of a general nature regarding the Company and for Investor Meeting booklet sent to all shareowners. Relations enquiries, please contact Investor Relations. Cadbury Schweppes plc This document is the Report & Accounts of Cadbury Schweppes public limited company for the period 25 Berkeley Square SUNKIST is a registered trade mark of Sunkist Growers, Inc. ended 1 January 2006. It contains the annual report and consolidated accounts in accordance with London W1J 6HB International Financial Reporting Standards (IFRS) accounting principles and regulations, and the company UK Leaf Sverige AB licenses the SWEDISH FISH mark on an exclusive basis to Cadbury Adams Canada Inc. in the US and Canada. only accounts in accordance with UK generally accepted accounting principles and regulations. Telephone: +44 (0) 20 7409 1313 Copies of the Better Payment Practice: Your guide to paying and being Designed and produced by Addison Corporate Marketing. paid on time can be obtained from the Department of Trade and Industry, Typeset by Asset Graphics. DTI Publications Orderline, Admail 528, London SW1W 8YT, telephone Printed in England at St Ives, Westerham Press. 0870 1502500. Alternatively, it can be ordered or downloaded from the DTI website, www.payontime.co.uk/downloads/DTI_BPP_brochure.PDF. Cadbury Schweppes Report & Accounts 2005 Description of Business Our business 1 Introduction 2 Origins and portfolio development 2 The business today 3 Goals and Priorities 6 Organisation structure and management 9 Regions 11 Functions 14 Production assets 18 Market environment 19 Competition 19 Industry trends 19 Consumers and customers 19 Raw materials and suppliers 20 Capabilities 20 Employees 20 People capabilities 21 Corporate and Social Responsibility 21 Risk factors 24 Forward-looking statements 25 Comparative statements 25 Report & Accounts 2005 Cadbury Schweppes 1 Description of Business Our business Over the last 25 years we have significantly changed our Introduction geographic and product participation within the confectionery Our principal businesses are confectionery and non-alcoholic and beverages markets, mainly through a programme of beverages. We have the largest share of the global acquisitions and disposals. confectionery market with broad participation across all categories and by geography. In beverages, we have strong We have extended and strengthened our position in certain regional presences in North America and Australia. markets and categories where we believed we could generate faster growth at higher margins, and exited other markets and In this section, we describe our continuing operations, categories where we felt we had no sustainable competitive therefore unless specifically stated otherwise, commentary advantage and where a sale created value for our shareowners. and financials given in this section exclude Europe Beverages, which was sold on 2 February 2006. The most significant strategic moves over this period have been: • 1986 and 1987 – sale of the food & beverage and health & Origins and portfolio development household divisions Our origins date back to the founding of Schweppes, a mineral • 1995 – purchase of Dr Pepper/Seven Up, a carbonated soft water business, by Jacob Schweppe in 1783, and the opening drinks business mainly in the US of a shop which sold cocoa products, by John Cadbury in 1824. • 1997 – sale of Coca-Cola & Schweppes Beverages, a soft The two businesses were merged in 1969 to create Cadbury drink bottling operation, in the UK Schweppes plc. Many of our key brands are long established, • 1999 – sale of beverage brands in approximately 160 having been launched in the late 19th and early 20th centuries, markets around the world most notably Cadbury Dairy Milk, Dr Pepper and Halls. • 2000 – purchase of Snapple, a non-carbonated premium beverages business mainly in the US Confectionery Brands • 2003 – purchase of the Adams confectionery business, a gum and medicated sugar confectionery business with Brand Product Date Launched strong positions in North, Central and South America Cadbury Cocoa Powder 1824 • 2006 – sale of Europe Beverages Bassett’s Sugar Confectionery 1842 Maynards Sugar Confectionery 1880 On 2 February 2006, we announced that we had completed Halls Cough Tablets Cough Drop 1893 the sale of the Europe Beverages business. Following the Dentyne Chewing Gum 1899 disposal of Europe Beverages, we have four regional Cadbury Dairy Milk Milk Chocolate Bar 1905 operating units: Americas Beverages; Americas Confectionery; Chiclets Sugar-coated Gum 1914 Europe Middle East and Africa (EMEA), which sells Clorets Breath Freshener 1951 predominantly confectionery; and Asia Pacific, selling both Stimorol Chewing Gum 1956 beverages and confectionery (see page 11). Trident Sugar-free Gum 1962 Bubblicious Bubble Gum 1977 We announced in October 2005 that we intend to dispose Sour Patch Kids Sugar Confectionery 1985 of a number of small non-core businesses and brands over the next two years with estimated proceeds of between £250 million and £300 million. In 2005, we sold Holland Beverages Brands House Cooking Wines, with Grandma’s Molasses following in early 2006. The combined proceeds were £37 million. Brand Product Date