Annual Report 2015

Chairman’s Statement

Sir Brian Stewart


...the strength of our core brands delivered highly creditable results in those territories. Internationally our brands continued to develop and offer attractive long term growth...

Group Chief Executive Officer’s Review

Stephen Glancey

Group Chief Executive Officer

The Group’s long term strategy of strong domestic brand geographic combinations providing the platform to participate in international cider growth remains unchanged...

Operating and Strategic Highlights

Net Revenue


increased by 10.3%

Operating Profit


before exceptional items
down 9.2%

Operating Margin


before exceptional items
down 3.6 ppts on prior year

Net Debt


at the year-end giving a leverage ratio
of net debt: EBITDA of 1.1x

Adjusted Diluted Earnings Per Share


per share
down 7.8%

Proposed Final Dividend


per share
an increase of 1.3 cent delivering 15% growth in full year dividend to 11.5 cent per share

Free Cash Flow Conversion


before exceptional items
an increase of 9.2 ppts on prior year

Corporate Responsibility

We are supporting the implementation of minimum unit pricing in Scotland, the Republic of Ireland and Northern Ireland.

We are campaigning for the changes in the tied pub laws that have been introduced in England and Wales to be applied in Scotland.

We are working with governmental bodies, Drinkaware and police forces on initiatives to improve the safety of the night time economy.

We are working to encourage the adoption of a new Cider Bill to help improve the quality of cider products in the US.

The Tennent’s Training Academy continues to provide high quality hospitality industry training, now having trained over 16,000 people.

We have made significant charitable contributions at the local and national level.

We have invested €1 million at Wellpark to deliver energy efficiencies and reduce GHG emissions.

Our main production sites have reduced energy consumption by 12% compared to three years ago.

Health and Safety programmes have delivered a significant reduction in the number of injuries resulting in lost-work days.

We pay corporation tax in the main geographies which we operate in and pay substantial amounts of alcohol duty.