Executive summary
| Analysis of results | 2005 £m |
Base business growth £m |
Acquisitions/ Disposals £m |
Exchange effects £m |
2006 £m |
|---|---|---|---|---|---|
| Revenue | 6,432 | 256 | 799 | (60) | 7,427 |
| Change % | +4% | +12% | -1% | +15% | |
| Underlying profit from operations | 1,025 | 44 | 18 | (14) | 1,073 |
| Change % | +4% | +2% | -1% | +5% | |
| — Restructuring costs | (71) | (133) | |||
| — Amortisation and impairment of intangibles | (6) | (38) | |||
| — Non-trading items | 25 | 40 | |||
| — UK product recall | – | (30) | |||
| — IAS 39 adjustment | 22 | (3) | |||
| Profit from operations | 995 | (46) | (26) | (14) | 909 |
| Change % | -5% | -3% | -1% | -9% | |
| Basic EPS – Continuing and Discontinued | |||||
| — Underlying | 33.9 | 1.4 | (3.2) | (0.5) | 31.6 |
| — Reported | 37.3 | 56.4 |
The key highlights of 2006 were as follows:
- Underlying revenue growth of 4%, driven by innovation and by emerging markets revenues up 10%
- Underlying profit before tax +9%
- Confectionery revenues +4%; gum revenues +10%; Trident +23%
- Beverage revenues +4%; 60bps share gain in US carbonates; Dr Pepper +2%
- Underlying margins flat despite increases in commodity costs and growth investment
- Cadbury Schweppes Bottling Group performing in line with acquisition case (except where stated all movements are at constant exchange rates)