Impact of Constant Exchange Rates and 53rd Week
The Group has historically used constant exchange rates to compare period to period changes in certain financial data. This is referred to as “at constant exchange rates” throughout this Annual Report & Accounts. The Group considers this to be a useful measure for analysing and explaining changes and trends in the Group’s results. The impact of the recalculation of sales, operating profit, profit before tax, profit for the financial period and earnings per share at constant exchange rates and the impact of the 53rd week in 2006/07, including a reconciliation to the Group’s GAAP results, is analysed below.
| 2007/08 $m |
2006/07 $m |
Growth at actual exchange rates % |
Impact of 53rd week $m |
2006/07 on 52 week basis at actual exchange rates (non- GAAP) $m |
2007/08 52 week growth at actual exchange rates (non- GAAP) % |
Impact of exchange rate movement £m |
2006/07 on 52 week basis at constant exchange rates (non- GAAP) $m |
2007/08 52 week growth at constant exchange rates (non- GAAP) % |
|
|---|---|---|---|---|---|---|---|---|---|
| Sales by origin and destination: |
|||||||||
| UK |
959.6 | 907.1 | 5.8 | (13.2) | 893.9 | 7.4 | 57.0 | 950.9 | 0.9 |
| US |
2,705.7 | 2,652.1 | 2.0 | (52.2) | 2,599.9 | 4.1 | - | 2,599.9 | 4.1 |
| 3,665.3 | 3,559.2 | 3.0 | (65.4) | 3,493.8 | 4.9 | 57.0 | 3,550.8 | 3.2 | |
| Operating profit: | |||||||||
| UK – Trading | 105.1 | 103.4 | 1.6 | (3.3) | 100.1 | 5.0 | 6.4 | 106.5 | (1.3) |
| Group function |
(16.0) | (13.9) | n/a | - | (13.9) | n/a | (0.9) | (14.8) | n/a |
| 89.1 | 89.5 | (0.4) | (3.3) | 86.2 | 3.4 | 5.5 | 91.7 | (2.8) | |
| US | 262.2 | 326.7 | (19.7) | (0.5) | 326.2 | (19.6) | - | 326.2 | (19.6) |
| 351.3 | 416.2 | (15.6) | (3.8) | 412.4 | (14.8) | 5.5 | 417.9 | (15.9) | |
| Profit before tax |
333.5 | 400.8 | (16.8) | (3.2) | 397.6 | (16.1) | 6.1 | 403.7 | (17.4) |
| Profit for the financial period |
215.2 | 266.0 | (19.1) | (2.1) | 263.9 | (18.4) | 4.3 | 268.2 | (19.7) |
| Earnings per share |
12.6c | 15.4c | (18.2) | (0.1)c | 15.3c | (17.5) | 0.2c | 15.5c | (18.7) |