REG - Assoc British Foods - ABF annual results for 52 weeks ended 13 Sept 2014 <Origin Href="QuoteRef">ABF.L</Origin> - Part 3
04/11/2014 08:05
- Part 3: For the preceding part double click ID:nRSD0238Wb
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Reclassification adjustment for movements in foreign exchange on subsidiaries disposed - - 7 - - 7 - 7
Movement in cash flow hedging position - - - 6 - 6 - 6
Deferred tax associated with movement in cash flow hedging position - - - (2) - (2) - (2)
Items that are or may be subsequently reclassified to profit or loss - - (92) 4 2 (86) (35) (121)
Other comprehensive income - - (92) 4 30 (58) (37) (95)
Total comprehensive income - - (92) 4 615 527 6 533
Transactions with owners
Dividends paid to equity shareholders - - - - (232) (232) - (232)
Net movement in own shares held - - - - 5 5 - 5
Dividends paid to non-controlling interests - - - - - - (29) (29)
Total transactions with owners - - - - (227) (227) (29) (256)
Balance as at 14 September 2013 45 175 440 (13) 5,508 6,155 364 6,519
Total comprehensive income
Profit for the period recognised in the income statement - - - - 762 762 21 783
Remeasurements of defined benefit schemes - - - - (25) (25) - (25)
Deferred tax associated with defined benefit schemes - - - - 3 3 - 3
Items that will not be reclassified to profit or loss - - - - (22) (22) - (22)
Effect of movements in foreign exchange - - (224) - - (224) (51) (275)
Net gain on hedge of net investment in foreign subsidiaries - - 25 - - 25 - 25
Current tax associated with movements in foreign exchange - - 2 - - 2 - 2
Movement in cash flow hedging position - - - 53 - 53 2 55
Deferred tax associated with movement in cash flow hedging position - - - (11) - (11) - (11)
Share of other comprehensive income of joint ventures and associates - - (5) - - (5) - (5)
Items that are or may be subsequently reclassified to profit or loss - - (202) 42 - (160) (49) (209)
Other comprehensive income - - (202) 42 (22) (182) (49) (231)
Total comprehensive income - - (202) 42 740 580 (28) 552
Transactions with owners
Dividends paid to equity shareholders - - - - (256) (256) - (256)
Net movement in own shares held - - - - (44) (44) - (44)
Current tax associated with share-based payments - - - - 2 2 - 2
Dividends paid to non-controlling interests - - - - - - (21) (21)
Acquisition of non-controlling interests - - - - - - 1 1
Total transactions with owners - - - - (298) (298) (20) (318)
Balance as at 13 September 2014 45 175 238 29 5,950 6,437 316 6,753
NOTES TO THE ANNUAL RESULTS ANNOUNCEMENT
For the 52 weeks ended 13 September 2014
1. Operating segments
The group has five operating segments, as
described below. These are the group's
operating divisions, based on the management
and internal reporting structure, which
combine businesses with common
characteristics. The board is the chief
operating decision-maker. Inter-segment
pricing is determined on an arm's length
basis. Segment result is adjusted operating
profit, as shown on the face of the
consolidated income statement. Segment assets
comprise all non-current assets except
employee benefits assets and deferred tax
assets, and all current assets except cash and
cash equivalents. Segment liabilities
comprise trade and other payables, derivative
liabilities and provisions. Segment results,
assets and liabilities include items directly
attributable to a segment as well as those
that can be allocated on a reasonable basis.
Unallocated items comprise mainly corporate
assets and expenses, cash, borrowings,
employee benefits balances and current and
deferred tax balances. Segment non-current
asset additions are the total cost incurred
during the period to acquire segment assets
that are expected to be used for more than one
year, comprising property, plant and
equipment, operating intangibles and
biological assets. The group is comprised of
the following operating segments: Grocery
The manufacture of grocery products,
including hot beverages, sugar & sweeteners,
vegetable oils, bread & baked goods, cereals,
ethnic foods, herbs & spices, and meat
products, which are sold to retail, wholesale
and foodservice businesses.Sugar
The growing and processing of sugar beet and
sugar cane for sale to industrial users and to
Silver Spoon, which is included in the grocery
segment.Agriculture The manufacture of
animal feeds and the provision of other
products and services for the agriculture
sector.Ingredients The manufacture of
bakers' yeast, bakery ingredients, enzymes,
lipids yeast extracts and cereal
specialities.Retail Buying and
merchandising value clothing and accessories
through the Primark and Penneys retail chains.
Geographical informationIn addition to the
required disclosure for operating segments,
disclosure is also given of certain
geographical information about the group's
operations, based on the geographical
groupings: United Kingdom; Europe & Africa;
The Americas; and Asia Pacific. Revenues are
shown by reference to the geographical
location of customers. Profits are shown by
reference to the geographical location of the
businesses. Segment assets are based on the
geographical location of the assets.
Revenue Adjusted operating profit
52 weeksended13 September2014 52 weeksended14 September2013 52 weeksended13 September2014 52 weeksended
14 September2013
(restated)
Operating segments £m £m £m £m
Grocery 3,337 3,568 269 224
Sugar 2,083 2,677 189 434
Agriculture 1,312 1,410 50 47
Ingredients 1,261 1,360 41 5
Retail 4,950 4,273 662 513
Central - - (49) (51)
12,943 13,288 1,162 1,172
Businesses disposed:
Grocery - - 1 2
Ingredients - 27 - 6
12,943 13,315 1,163 1,180
Geographical information
United Kingdom 5,631 5,728 602 710
Europe & Africa 3,924 3,790 393 386
The Americas 1,211 1,282 127 103
Asia Pacific 2,177 2,488 40 (27)
12,943 13,288 1,162 1,172
Businesses disposed:
The Americas - 27 - 6
Asia Pacific - - 1 2
12,943 13,315 1,163 1,180
See page 29 for details of the restatement of 2013 comparative data
1. Operating segments for the 52 weeks ended 13 September 2014
Grocery Sugar Agriculture Ingredients Retail Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 3,344 2,164 1,312 1,423 4,950 (250) 12,943
Internal revenue (7) (81) - (162) - 250 -
External revenue from continuing businesses 3,337 2,083 1,312 1,261 4,950 - 12,943
Businesses disposed - - - - - - -
Revenue from external customers 3,337 2,083 1,312 1,261 4,950 - 12,943
Adjusted operating profit before joint ventures and associates 254 215 36 31 662 (49) 1,149
Share of profit after tax from joint ventures and associates 15 (26) 14 10 - - 13
Businesses disposed 1 - - - - - 1
Adjusted operating profit 270 189 50 41 662 (49) 1,163
Profits less losses on disposal of non-current assets 6 - 1 - (14) (4) (11)
Amortisation of non-operating intangibles (50) (17) (3) (2) - - (72)
Profits less losses on sale and closure of businesses - - - (2) - - (2)
Profit before interest 226 172 48 37 648 (53) 1,078
Finance income 15 15
Finance expense (73) (73)
Taxation (237) (237)
Profit for the period 226 172 48 37 648 (348) 783
Segment assets (excluding joint ventures and associates) 2,431 2,327 312 1,266 2,948 215 9,499
Investments in joint ventures and associates 38 13 113 48 - - 212
Segment assets 2,469 2,340 425 1,314 2,948 215 9,711
Cash and cash equivalents 519 519
Deferred tax assets 152 152
Employee benefits assets 90 90
Segment liabilities (495) (385) (125) (251) (784) (122) (2,162)
Loans and overdrafts (965) (965)
Income tax (193) (193)
Deferred tax liabilities (266) (266)
Employee benefits liabilities (133) (133)
Net assets 1,974 1,955 300 1,063 2,164 (703) 6,753
Non-current asset additions 153 103 28 65 394 1 744
Depreciation 96 80 7 44 171 4 402
Amortisation 64 20 6 4 - - 94
Impairment of goodwill on closure of business - - - 4 - - 4
Geographical information
United Europe The Asia
Kingdom & Africa Americas Pacific Total
£m £m £m £m £m
Revenue from external customers 5,631 3,924 1,211 2,177 12,943
Segment assets 3,951 3,220 968 1,572 9,711
Non-current asset additions 279 351 34 80 744
Depreciation 184 122 27 69 402
Amortisation 22 19 43 10 94
Impairment of goodwill on closure of business - - - 4 4
1. Operating segments for the 52 weeks ended 14 September 2013 (restated)
Grocery Sugar Agriculture Ingredients Retail Central Total
£m £m £m £m £m £m £m
Revenue from continuing businesses 3,576 2,808 1,410 1,544 4,273 (323) 13,288
Internal revenue (8) (131) - (184) - 323 -
External revenue from continuing businesses 3,568 2,677 1,410 1,360 4,273 - 13,288
Businesses disposed - - - 27 - - 27
Revenue from external customers 3,568 2,677 1,410 1,387 4,273 - 13,315
Adjusted operating profit before joint ventures and associates 216 449 35 (3) 513 (51) 1,159
Share of profit after tax from joint ventures and associates 8 (15) 12 8 - - 13
Businesses disposed 2 - - 6 - - 8
Adjusted operating profit 226 434 47 11 513 (51) 1,180
Amortisation of non-operating intangibles (19) (21) (1) (51) - - (92)
Profits less losses on sale and closure of businesses - (15) - (113) - - (128)
Profit before interest 207 398 46 (153) 513 (51) 960
Finance income 13 13
Finance expense (100) (100)
Other financial expense (5) (5)
Taxation (240) (240)
Profit for the period 207 398 46 (153) 513 (383) 628
Segment assets (excluding joint ventures and associates) 2,510 2,432 319 1,315 2,677 187 9,440
Investments in joint ventures and associates 33 34 99 52 - - 218
Segment assets 2,543 2,466 418 1,367 2,677 187 9,658
Cash and cash equivalents 362 362
Deferred tax assets 273 273
Employee benefits assets 81 81
Segment liabilities (496) (398) (121) (250) (619) (112) (1,996)
Loans and overdrafts (1,166) (1,166)
Income tax (166) (166)
Deferred tax liabilities (431) (431)
Employee benefits liabilities (96) (96)
Net assets 2,047 2,068 297 1,117 2,058 (1,068) 6,519
Non-current asset additions 158 158 10 77 220 6 629
Depreciation 102 86 7 55 151 4 405
Amortisation 36 37 3 54 - - 130
Impairment of property, plant and equipment - 8 - 19 - - 27
Impairment of operating intangibles - 4 - - - - 4
Impairment of goodwill - 10 - - - - 10
Impairment of property, plant and equipment on closure of business - 3 - 74 - - 77
Impairment of goodwill on sale of business - 14 - - - - 14
Geographical information
United Europe The Asia
Kingdom & Africa Americas Pacific Total
£m £m £m £m £m
Revenue from external customers 5,728 3,790 1,309 2,488 13,315
Segment assets 3,863 3,096 1,022 1,677 9,658
Non-current asset additions 260 209 51 109 629
Depreciation 177 102 28 98 405
Amortisation 35 26 39 30 130
Impairment of property, plant and equipment - 19 - 8 27
Impairment of operating intangibles - - - 4 4
Impairment of goodwill - - - 10 10
Impairment of property, plant and equipment on closure of business - - - 77 77
Impairment of goodwill on sale of business - - - 14 14
The comparative results for 2013 have been restated for the adoption of IAS19 Revised - Employee benefits
During the year, the activities of AB Mauri's yeast and bakery ingredients businesses in Australia and New Zealand were
merged with the flour milling business of George Weston Foods. The results of the flour milling business, which were
previously included within the Grocery segment, are now included in the Ingredients segment. The comparative results for
2013 have been reclassified, resulting in £272m of revenue and £4m of adjusted operating profit being transferred from
Grocery to Ingredients. Segment assets and liabilities have also been restated in this respect.
Disposed businesses comprise the disposal during the year of the group's interest in a US associate in the Ingredients
segment and an associated Australian royalty stream in the Grocery segment, together with the prior year disposal of the
group's US whey protein businesses in the Ingredients segment.
2. Profits less losses on sale and closure of businesses
2014The group disposed of its interest in a US associate in the Ingredients segment
for a profit of £7m. Cash consideration was £12m, deferred consideration was £1m,
share of net assets disposed was £2m and provisions made were £4m. In addition, a
charge of £9m was made in the Ingredients segment in China and India for
restructuring costs associated with business closures, including a £4m impairment of
goodwill. 2013Loss on sale and closure of businesses of £128m comprised £113m for
disposals and closures in the Ingredients segment and £15m for the loss on disposal
of the sugar business in Chifeng, north China. Included within the amount charged in
the Ingredients segment was a loss of £26m in respect of the disposal of our US whey
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