Table of Contents
The three-year summaries of income statements and balance sheets in the following pages are about three quintessentially British icons. The first, Cadbury plc, is the second largest candy maker in the world after Mars of the USA; as well, Cadbury ranks right after global leader Wrigley’s in chewing gum (Hoover 2009a 1). On the other hand, Diageo (the Spanish for “day” and Greek for “earth” combined) is the global leader in alcoholic beverages in point of volume, net sales, and operating profit. Diageo is best-known for its premium spirits brands — Johnnie Walker Scotch, José Cuervo tequila, Tanqueray gin, and Smirnoff vodka – though the company is also a force to reckon with in beer (Guinness Stout and Harp Lager) and mid-market wines (e.g. Sterling Vineyard and Blossom Hill) (Hoover 2009b 1). Thirdly, national airline British Airways plc itself needs no introduction.
Cadbury Financial Highlights
| Cadbury plc Income Statement | |||||
| In Millions of GBP (except for per share items) | |||||
| 2010 (forecast) | 52 weeks ending 2008-12-31 | 52 weeks ending 2007-12-31 | 52 weeks ending 2006-12-31 | 52 weeks ending 2006-01-01 | |
| Revenue | 5,188.28 | 5,384.00 | 4,699.00 | 4,483.00 | 6,432.00 |
| Other Revenue, Total | – | – | – | – | |
| Total Revenue | 5,188.28 | 5,384.00 | 4,699.00 | 4,483.00 | 6,432.00 |
| Cost of Revenue, Total | 2,852.29 | 2,870.00 | 2,504.00 | 2,364.00 | 3,046.00 |
| Gross Profit | 2,335.99 | 2,514.00 | 2,195.00 | 2,119.00 | 3,386.00 |
| Selling/General/Admin. Expenses, Total | 1,843.53 | 1,929.00 | 1,736.00 | 1,658.00 | 2,339.00 |
| Research & Development | – | – | – | – | |
| Depreciation/Amortization | 3.51 | 4 | 5 | 5 | 6 |
| Interest Expense(Income) – Net Operating | – | – | – | – | |
| Unusual Expense (Income) | 339.01 | 196 | 176 | 120 | 46 |
| Other Operating Expenses, Total | 0 | 0 | 30 | 0 | |
| Total Operating Expense | 5,038.34 | 4,996.00 | 4,421.00 | 4,155.00 | 5,437.00 |
| Operating Income | 149.94 | 388 | 278 | 328 | 995 |
| Interest Income(Expense), Net Non-Operating | – | – | – | – | |
| Gain (Loss) on Sale of Assets | – | – | – | – | |
| Other, Net | 34.93 | 24 | 30 | 27 | 11 |
| Income Before Tax | 184.86 | 400 | 254 | 244 | 835 |
| Income After Tax | 171.00 | 370 | 149 | 176 | 700 |
| Minority Interest | -2 | -2 | -2 | 4 | -11 |
| Equity In Affiliates | – | – | – | – | |
| Net Income Before Extra. Items | 169 | 368 | 147 | 180 | 689 |
| Accounting Change | – | – | – | – | |
| Discontinued Operations | – | – | – | – | |
| Extraordinary Item | – | – | – | – | |
| Net Income | 169 | 364 | 405 | 1,169.00 | 765 |
| Preferred Dividends | – | – | – | – | |
| Income Available to Common Excl. Extra Items | 169 | 368 | 147 | 180 | 689 |
| Income Available to Common Incl. Extra Items | 169 | 364 | 405 | 1,169.00 | 765 |
| Basic Weighted Average Shares | – | – | – | – | |
| Basic EPS Excluding Extraordinary Items | – | – | – | – | |
| Basic EPS Including Extraordinary Items | – | – | – | – | |
| Dilution Adjustment | – | – | – | – | |
| Diluted Weighted Average Shares | 1,729.49 | 1,614.00 | 1,335.68 | 1,338.24 | 1,327.36 |
| Diluted EPS Excluding Extraordinary Items | 0.24 | 0.23 | 0.11 | 0.13 | 0.52 |
| Cadbury plc Balance Sheet | |||||
| In Millions of GBP (except for per share items) | 2010 (forecast) | 52 weeks ending 2008-12-31 | 52 weeks ending 2007-12-31 | 52 weeks ending 2006-12-31 | 52 weeks ending 2006-01-01 |
| Cash & Equivalents | – | – | – | – | – |
| Short Term Investments | 536 | 515 | 48 | 177 | 114 |
| Cash and Short Term Investments | 848 | 766 | 541 | 446 | 446 |
| Accounts Receivable – Trade, Net | 927 | 790 | 953 | 926 | 901 |
| Receivables – Other | – | – | – | – | – |
| Total Receivables, Net | 1,237.72 | 1,021.00 | 1,136.00 | 1,119.00 | 1,081.00 |
| Total Inventory | 880 | 767 | 821 | 728 | 713 |
| Prepaid Expenses | 83 | 81 | 102 | 103 | 146 |
| Other Current Assets, Total | – | – | – | 22 | 945 |
| Total Current Assets | 3,128.10 | 2,635.00 | 2,600.00 | 2,418.00 | 3,331.00 |
| Property/Plant/Equipment, Total – Gross | 3,330.00 | 3,330.00 | 3,593.00 | 3,134.00 | 2,982.00 |
| Goodwill, Net | – | – | – | – | – |
| Intangibles, Net | 4,251.42 | 3,973.00 | 6,332.00 | 5,903.00 | 5,648.00 |
| Long Term Investments | 31 | 30 | 34 | 24 | 374 |
| Other Long Term Assets, Total | 495 | 468 | 418 | 170 | 123 |
| Total Assets | 9,395.00 | 8,895.00 | 11,338.00 | 10,233.00 | 10,992.00 |
| Accounts Payable | 654 | 586 | 643 | 575 | 590 |
| Accrued Expenses | 787 | 692 | 734 | 727 | 657 |
| Notes Payable/Short Term Debt | 171 | 169 | 22 | 35 | 61 |
| Current Port. of LT Debt/Capital Leases | 1572 | 1,190.00 | 2,583.00 | 1,461.00 | 1,214.00 |
| Other Current liabilities, Total | 844 | 751 | 632 | 580 | 575 |
| Total Current Liabilities | 4,028.37 | 3,388.00 | 4,614.00 | 3,378.00 | 3,097.00 |
| Long Term Debt | 1,592.11 | 1,194.00 | 1,120.00 | 1,810.00 | 3,022.00 |
| Capital Lease Obligations | 1 | 1 | 11 | 33 | 43 |
| Total Long Term Debt | 1,593.11 | 1,195.00 | 1,131.00 | 1,843.00 | 3,065.00 |
| Total Debt | 3,990.98 | 2,554.00 | 3,736.00 | 3,339.00 | 4,340.00 |
| Deferred Income Tax | 141 | 121 | 1,145.00 | 1,050.00 | 954 |
| Minority Interest | 12 | 12 | 11 | 8 | 27 |
| Other Liabilities, Total | 718 | 657 | 275 | 266 | 841 |
| Total Liabilities | 6,862.00 | 5,373.00 | 7,176.00 | 6,545.00 | 7,984.00 |
| Redeemable Preferred Stock, Total | – | – | – | – | – |
| Preferred Stock – Non Redeemable, Net | – | – | – | – | – |
| Common Stock, Total | 142 | 136 | 264 | – | – |
| Additional Paid-In Capital | 45 | 38 | 1,225.00 | 1,171.00 | 1,135.00 |
| Retained Earnings (Accumulated Deficit) | 3,348.00 | 3,348.00 | 2,673.00 | 2,255.00 | 1,613.00 |
| Treasury Stock – Common | – | – | – | – | – |
| Other Equity, Total | – | – | – | 262 | 260 |
| Total Equity | 3,534.24 | 3,522.00 | 4,162.00 | 3,688.00 | 3,008.00 |
| Total Liabilities & Shareholders’ Equity | 10,396.24 | 8,895.00 | 11,338.00 | 10,233.00 | 10,992.00 |
| Shares Outs – Common Stock Primary Issue | – | – | – | – | – |
| Total Common Shares Outstanding | 1,716.35 | 1,360.77 | 1,349.76 | 1,340.80 | 1,326.08 |
Diageo Financial Highlights
| Diageo plc Income Statement | |||||
| In Millions of GBP (except for per share items) | |||||
| 2010 (forecast) | 12 months ending 2009-06-30 | 12 months ending 2008-06-30 | 12 months ending 2007-06-30 | 12 months ending 2006-06-30 | |
| Revenue | 10,126.56 | 9,311.00 | 8,090.00 | 7,481.00 | 7,260.00 |
| Other Revenue, Total | – | – | – | – | |
| Total Revenue | 10,126.56 | 9,311.00 | 8,090.00 | 7,481.00 | 7,260.00 |
| Cost of Revenue, Total | 5,352.54 | 3,883.00 | 3,245.00 | 1,627.00 | 1,723.00 |
| Gross Profit | 4,774.03 | 5,428.00 | 4,845.00 | 5,854.00 | 5,537.00 |
| Selling/General/Admin. Expenses, Total | 1,167.86 | 1,312.00 | 1,239.00 | 2,155.00 | 2,079.00 |
| Research & Development | – | – | – | – | |
| Depreciation/Amortization | – | – | 210 | 214 | |
| Interest Expense(Income) – Net Operating | – | – | – | – | |
| Unusual Expense (Income) | 0 | -9 | -61 | -153 | |
| Other Operating Expenses, Total | 1,863.82 | 1,673.00 | 1,380.00 | 1,337.00 | 1,218.00 |
| Total Operating Expense | 8,384.22 | 6,868.00 | 5,855.00 | 5,323.00 | 5,059.00 |
| Operating Income | 1,742.34 | 2,443.00 | 2,235.00 | 2,158.00 | 2,201.00 |
| Interest Income(Expense), Net Non-Operating | – | – | – | – | |
| Gain (Loss) on Sale of Assets | – | – | – | – | |
| Other, Net | – | – | 55 | 24 | |
| Income Before Tax | 1,600.00 | 2,015.00 | 2,093.00 | 2,095.00 | 2,146.00 |
| Income After Tax | 1,400.00 | 1,723.00 | 1,571.00 | 1,417.00 | 1,965.00 |
| Minority Interest | -128 | -104 | -76 | -67 | -57 |
| Equity In Affiliates | – | – | – | – | |
| Net Income Before Extra. Items | 1,272.49 | 1,619.00 | 1,495.00 | 1,350.00 | 1,908.00 |
| Accounting Change | – | – | – | – | |
| Discontinued Operations | – | – | – | – | |
| Extraordinary Item | – | – | – | – | |
| Net Income | 1,272.49 | 1,621.00 | 1,521.00 | 1,489.00 | 1,908.00 |
| Preferred Dividends | – | – | – | – | |
| Income Available to Common Excl. Extra Items | 1,272.49 | 1,619.00 | 1,495.00 | 1,350.00 | 1,908.00 |
| Income Available to Common Incl. Extra Items | 1,272.49 | 1,621.00 | 1,521.00 | 1,489.00 | 1,908.00 |
| Basic Weighted Average Shares | – | – | – | – | |
| Basic EPS Excluding Extraordinary Items | – | – | – | – | |
| Basic EPS Including Extraordinary Items | – | – | – | – | |
| Dilution Adjustment | – | – | – | – | |
| Diluted Weighted Average Shares | 2,380.88 | 2,490.77 | 2,582.34 | 2,707.00 | 2,852.00 |
| Diluted EPS Excluding Extraordinary Items | 0.66 | 0.65 | 0.58 | 0.5 | 0.67 |
| Diageo plc Balance Sheet | ||||||
| In Millions of GBP (except for per share items) | 2010 (forecast) | As of 2009-06-30 | As of 2008-06-30 | As of 2007-06-30 | As of 2006-06-30 | |
| Cash & Equivalents | 266 | 261 | 158 | 267 | 216 | |
| Short Term Investments | 99 | 98.00 | 104 | 78 | 71 | |
| Cash and Short Term Investments | 1,124.48 | 1012.00 | 818 | 963 | 770 | |
| Accounts Receivable – Trade, Net | 1,858.20 | 1,568.00 | 1,650.00 | 1,380.00 | 1,332.00 | |
| Receivables – Other | – | – | – | – | ||
| Total Receivables, Net | 2,108.88 | 1818.00 | 1,947.00 | 1,668.00 | 1,592.00 | |
| Total Inventory | 3,667.92 | 3162.00 | 2,739.00 | 2,465.00 | 2,386.00 | |
| Prepaid Expenses | 247.08 | 213.00 | 104 | 91 | 89 | |
| Other Current Assets, Total | – | – | – | – | ||
| Total Current Assets | 7,148.36 | 6205.00 | 5,608.00 | 5,187.00 | 4,837.00 | |
| Property/Plant/Equipment, Total – Gross | 4,243.28 | 3658.00 | 3,271.00 | 2,939.00 | 2,910.00 | |
| Goodwill, Net | 374 | 363.00 | 350 | 165 | 140 | |
| Intangibles, Net | 6,788.32 | 5852.00 | 5,180.00 | 4,218.00 | 4,394.00 | |
| Long Term Investments | 3,062.40 | 2640.00 | 2,088.00 | 1,616.00 | 1,452.00 | |
| Other Long Term Assets, Total | 831 | 750.00 | 668 | 821 | 1,140.00 | |
| Total Assets | 20,785.97 | 18096.00 | 16,027.00 | 13,956.00 | 13,927.00 | |
| Accounts Payable | 703 | 655.00 | 664 | 558 | 494 | |
| Accrued Expenses | 1,112 | 959.00 | 994 | 866 | 902 | |
| Notes Payable/Short Term Debt | 223 | 220.00 | 126 | 43 | 36 | |
| Current Port. of LT Debt/Capital Leases | 1,032.40 | 890.00 | 1,663.00 | 1,535.00 | 759 | |
| Other Current liabilities, Total | 1,465.08 | 1263.00 | 1,242.00 | 1,197.00 | 1,144.00 | |
| Total Current Liabilities | 4,535.98 | 3987.00 | 4,689.00 | 4,199.00 | 3,335.00 | |
| Long Term Debt | 8,914.60 | 7685.00 | 5,545.00 | 4,132.00 | 4,001.00 | |
| Capital Lease Obligations | 17 | 17.00 | 5 | – | – | |
| Total Long Term Debt | 8,931.62 | 7702.00 | 5,550.00 | 4,132.00 | 4,001.00 | |
| Total Debt | 10,186.77 | 8812.00 | 7,339.00 | 5,710.00 | 4,796.00 | |
| Deferred Income Tax | 671 | 621 | 676 | 582 | 674 | |
| Minority Interest | 753 | 715 | 677 | 198 | 179 | |
| Other Liabilities, Total | 2,128.17 | 1850.00 | 937 | 873 | 1,236.00 | |
| Total Liabilities | 19,789.00 | 14875.00 | 12,529.00 | 9,984.00 | 9,425.00 | |
| Redeemable Preferred Stock, Total | – | – | – | – | ||
| Preferred Stock – Non Redeemable, Net | – | – | – | – | ||
| Common Stock, Total | 881 | 797 | 816 | 848 | 883 | |
| Additional Paid-In Capital | 1,568.07 | 1342.00 | 1,342.00 | 1,341.00 | 1,340.00 | |
| Retained Earnings (Accumulated Deficit) | 1,397.19 | 1082.00 | 1,340.00 | 1,783.00 | 4,683.00 | |
| Treasury Stock – Common | – | – | – | -2,404.00 | ||
| Other Equity, Total | – | – | – | – | ||
| Total Equity | 3,846.24 | 3,221.00 | 3,498.00 | 3,972.00 | 4,502.00 | |
| Total Liabilities & Shareholders’ Equity | 23,635.24 | 18,096.00 | 16,027.00 | 13,956.00 | 13,927.00 | |
| Shares Outs – Common Stock Primary Issue | – | – | – | – | ||
| Total Common Shares Outstanding | 3,285.79 | 2,476.00 | 2,517.00 | 2,627.00 | 2,759.00 | |
British Airways
| British Airways Plc Income Statement | |||||
| In Millions of GBP (except for per share items) | |||||
| 2010 (forecast) | 12 months ending 2009-03-31 | 12 months ending 2008-03-31 | 12 months ending 2007-03-31 | 12 months ending 2006-03-31 | |
| Revenue | 8,850.36 | 8,509.00 | 8,215.00 | 7,881.00 | 7,562.00 |
| Other Revenue, Total | 437 | 483 | 543 | 611 | 651 |
| Total Revenue | 9,287.76 | 8,992.00 | 8,758.00 | 8,492.00 | 8,213.00 |
| Cost of Revenue, Total | 7,994.20 | 7,369.00 | 6,244.00 | 6,150.00 | 5,807.00 |
| Gross Profit | 1,293.56 | 1,140.00 | 1,971.00 | 1,731.00 | 1,755.00 |
| Selling/General/Admin. Expenses, Total | 936.36 | 954 | 937 | 1,054.00 | 1,016.00 |
| Research & Development | – | – | – | – | |
| Depreciation/Amortization | 687 | 694 | 692 | 714 | 715 |
| Interest Expense(Income) – Net Operating | – | – | – | – | |
| Unusual Expense (Income) | 93 | 6 | – | – | |
| Other Operating Expenses, Total | – | – | -46 | 0 | |
| Total Operating Expense | 9,617.78 | 9,227.00 | 7,885.00 | 7,890.00 | 7,519.00 |
| Operating Income | 330 | -235 | 873 | 602 | 694 |
| Interest Income(Expense), Net Non-Operating | -15 | -17 | 70 | -19 | -18 |
| Gain (Loss) on Sale of Assets | 1 | 2 | 12 | 47 | 27 |
| Other, Net | – | – | – | – | |
| Income Before Tax | 344 | -401 | 922 | 611 | 616 |
| Income After Tax | 252 | -358 | 728 | 438 | 464 |
| Minority Interest | 18 | -17 | -14 | -14 | -16 |
| Equity In Affiliates | – | – | – | – | |
| Net Income Before Extra. Items | 270 | -375 | 714 | 424 | 448 |
| Accounting Change | – | – | – | – | |
| Discontinued Operations | – | – | – | – | |
| Extraordinary Item | – | – | – | – | |
| Net Income | 270 | -375 | 712 | 290 | 451 |
| Preferred Dividends | – | – | – | – | |
| Income Available to Common Excl. Extra Items | 270 | -375 | 714 | 424 | 448 |
| Income Available to Common Incl. Extra Items | 270 | -375 | 712 | 290 | 451 |
| Basic Weighted Average Shares | – | – | – | – | |
| Basic EPS Excluding Extraordinary Items | – | – | – | – | |
| Basic EPS Including Extraordinary Items | – | – | – | – | |
| Dilution Adjustment | 0 | – | 0 | 0 | |
| Diluted Weighted Average Shares | 1,155.52 | 1,151.23 | 1,158.63 | 1,151.94 | 1,138.55 |
| Diluted EPS Excluding Extraordinary Items | 0.23 | -0.33 | 0.62 | 0.37 | 0.39 |
| British Airways Plc Balance Sheet | |||||
| In Millions of GBP (except for per share items) | |||||
| 2010 (forecast) | As of 2009-03-31 | As of 2008-03-31 | As of 2007-03-31 | As of 2006-03-31 | |
| Cash & Equivalents | – | – | – | – | 398 |
| Short Term Investments | 160 | 155 | 503 | 119 | – |
| Cash and Short Term Investments | 432 | 402 | 683 | 713 | 398 |
| Accounts Receivable – Trade, Net | 568 | 530 | 586 | 654 | 685 |
| Receivables – Other | – | – | – | – | |
| Total Receivables, Net | 1,977.77 | 1,597.00 | 1,870.00 | 2,364.00 | 2,794.00 |
| Total Inventory | 129 | 127 | 112 | 76 | 83 |
| Prepaid Expenses | 184 | 180 | 205 | 200 | 214 |
| Other Current Assets, Total | 41 | 40 | 241 | 78 | 177 |
| Total Current Assets | 2,899.53 | 2,346.00 | 3,111.00 | 3,431.00 | 3,666.00 |
| Property/Plant/Equipment, Total – Gross | 14,827.24 | 14,135.00 | 13,701.00 | 13,374.00 | 13,525.00 |
| Goodwill, Net | 40 | 40 | 40 | 40 | 72 |
| Intangibles, Net | 232 | 227 | 181 | 172 | 161 |
| Long Term Investments | 287 | 277 | 358 | 232 | 164 |
| Other Long Term Assets, Total | 378 | 365 | 339 | 152 | 229 |
| Total Assets | 11,952.78 | 10,488.00 | 11,292.00 | 11,384.00 | 12,174.00 |
| Accounts Payable | 734 | 666 | 648 | 723 | 752 |
| Accrued Expenses | 658 | 691 | 738 | 411 | 538 |
| Notes Payable/Short Term Debt | – | 0 | 0 | 0 | 0 |
| Current Port. of LT Debt/Capital Leases | 547 | 689 | 423 | 417 | 479 |
| Other Current liabilities, Total | 2,107.45 | 2,096.00 | 1,683.00 | 2,074.00 | 1,663.00 |
| Total Current Liabilities | 4,047.04 | 4,142.00 | 3,492.00 | 3,625.00 | 3,432.00 |
| Long Term Debt | 709 | 779 | 764 | 878 | 1,030.00 |
| Capital Lease Obligations | 2,277.01 | 2,295.00 | 1,987.00 | 2,051.00 | 2,572.00 |
| Total Long Term Debt | 2,985.90 | 3,074.00 | 2,751.00 | 2,929.00 | 3,602.00 |
| Total Debt | 3,532.78 | 3,763.00 | 3,174.00 | 3,346.00 | 4,081.00 |
| Deferred Income Tax | 593 | 652 | 1,075.00 | 930 | 896 |
| Minority Interest | 200 | 200 | 200 | 200 | 213 |
| Other Liabilities, Total | 581 | 774 | 712 | 1,489.00 | 2,170.00 |
| Total Liabilities | 9,454.84 | 8,842.00 | 8,230.00 | 9,173.00 | 10,313.00 |
| Redeemable Preferred Stock, Total | – | – | – | – | |
| Preferred Stock – Non Redeemable, Net | – | – | – | – | |
| Common Stock, Total | 288 | 288 | 288 | 288 | 283 |
| Additional Paid-In Capital | 937 | 937 | 937 | 933 | 888 |
| Retained Earnings (Accumulated Deficit) | 506 | 430 | 1,847.00 | 1,000.00 | 690 |
| Treasury Stock – Common | -9 | -9 | -10 | -10 | 0 |
| Other Equity, Total | – | – | – | – | |
| Total Equity | 1,721.84 | 1,646.00 | 3,062.00 | 2,211.00 | 1,861.00 |
| Total Liabilities & Shareholders’ Equity | 11,176.68 | 10,488.00 | 11,292.00 | 11,384.00 | 12,174.00 |
| Shares Outs – Common Stock Primary Issue | – | – | – | – | – |
| Total Common Shares Outstanding | 1,153.63 | 1,153.63 | 1,153.11 | 1,151.58 | 1,130.88 |
| Summary figures for SGR based on last year for which figures are positive | |||
| Cadbury | Diageo | British Airways | |
| Year | 2008 | 2009 | 2008 |
| Annualized dividend per share | 0.16 | 0.36 | 0.05 |
| EPS | 0.23 | 0.71 | 0.62 |
| SGR | 3.18% | 24.78% | 21.38% |
| Net Income* | 368 | 1,619 | 712 |
| Equity* | 3,522 | 3,221 | 3,062 |
| ROE | 0.104 | 0.503 | 0.233 |
| Dividend Payout Ratio | 0.696 | 0.507 | 0.081 |
| *In million GBP | |||
Works Cited
Thomson Reuters. “Cadbury plc (ADR) financials.” 2009a. Web.
Thomson Reuters. “Diageo plc (ADR) financials.” 2009b. Web.
Thomson Reuters. “British Airways plc (ADR) financials.” 2009c. Web.