Financial Review


Paul Hyde

“Core contribution grew across all of our business units and all of our regions and we further increased the investment in our brands”

Paul Hyde
Chief Financial Officer

Management Key Performance Indicators

  2018 2017 % movement
Presented in constant currency rates:
Core revenue £706.7m £663.1m 7%
Brand investment expenditure £125.7m £120.2m 5%
Core contribution £210.5m £197.5m 7%
Presented in actual currency rates:
EBITDA £232.9m £227.9m 2%
Profit before tax (pre-exceptional) £196.5m £189.6m 4%
Profit for the year (pre-exceptional) £87.9m £91.5m -4%
Free cash flow £91.0m £98.3m  -8%
Net debt/EBITDA 2.3 2.1  
Return on capital employed 21.4% 23.2%  


Statutory Key Performance Indicators

  2018 2017 % movement
Earnings before interest and tax £210.5m £207.1m 2%
Profit before tax £194.7m £189.0m 3%
Profit for the financial year £86.6m £91.0m -5%


The total quantity of cases sold, where a case equivalent is measured as 12 70cl bottles at 40% abv.

Core revenue
Total revenue from sales of our branded products adjusted for the impact of foreign currency.

Brand investment expenditure
Advertising and promotional expenditure on our core brands, excluding discounts and restated to constant currency.

Core contribution
Profits from our branded sales and distribution adjusted for the impact of foreign currency and after the deduction of overheads.

Earnings before the deduction of interest, tax, depreciation and amortisation.

Profit before tax (pre-exceptional)
Profit before exceptional items and the deduction of taxation.

Profit for the year (pre-exceptional)
Profit after tax and minority interests excluding exceptional items.

Free cash flow
Net cash flow excluding the movements in borrowings, shares, dividend payments, expansionary capital expenditure and non-cash exceptional items.

Net debt/EBITDA
The ratio of Bank & Private Placement Debt at hedged rates where applicable after deduction of cash balances to reported Earnings before interest, taxation, depreciation and amortisation.

Return on capital employed
Earnings before interest and tax before exceptional items as a percentage of invested capital. Invested capital is defined as being total equity adjusted to remove balances relating to financial instruments, post-retirement benefit obligations, intangible brand values and net debt, along with any associated deferred tax asset or liability.

Constant Currency
For constant currency reporting the comparative information is stated at the average rates used in the current year income statement. This allows direct comparability of the underlying performance across financial years.

Financial Review 2018
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