04 May 2000
Interim results for the six months to 29 February 2000
A STRONG START TO THE YEAR
|Profits before tax
|Earnings per share
|Marketing investment behind Spirits & Wine brands
Allied Domecq's Chief Executive, Philip Bowman said:
"This is the first period of reporting as a focused brand led business following the sale of the UK Retail assets last September. Strong results have been achieved in an environment of significant change for the Group. The improvement in profitability and earnings is a direct consequence of an increased focus on profitable volume through management of product mix, pricing and enhanced marketing support behind key brands.
Ballantine's, Kahlua and Beefeater were the primary drivers of the growth of the Spirits & Wine business, increasing volumes, margin and profit contribution. The Quick Service Restaurants ("QSR") business in the USA performed well, led by a 7% like for like sales growth at Dunkin' Donuts. Losses in the International QSR business were eliminated following significant restructuring over the past nine months to create a robust platform for focused expansion.
Allied Domecq has a portfolio of great international brands. We are managing this portfolio region by region, both to grow brand equity and also to deliver sustainable earnings growth within the competitive markets in which we operate.
An interim dividend of 4.0p per ordinary share will be paid on 1 September 2000. The shares will go ex-dividend on 31 July 2000."
*proforma normalised (i.e excluding UK Retail and before exceptionals) at constant actual foreign currency rates