FY2022 has seen the reopening of the on-trade across our core markets and a rebuilding of profit and cash generation for the Group. As a consequence, we have reinstated the Key Performance Indicators (“KPIs”) reported in FY2020 although we would note that performance in a number of KPIs compared with pre COVID-19 remain impacted. With recognition of the current backdrop and covenant waiver period net debt and liquidity continue to form part of the key financial metrics during FY2022.
Strategic Report - Key Performance Indicators
Strategic Priority
KPI
Operating profit
Definition (see also financial definitions on pages 240 and 241)
Operating profit/(loss) (before exceptional items)
Performance
FY2022 Focus
To seek continuing growth, through revenue enhancement, acquisition synergies and cost control
Links to other Disclosures
Group CFO Review
KPI
Operating margin
Definition (see also financial definitions on pages 240 and 241)
Operating profit/(loss) (before exceptional items), as a percentage of net revenue
Performance
FY2022 Focus
To seek continuing growth, through revenue enhancement, acquisition synergies and cost control
Links to other Disclosures
Group CFO Review
KPI
Adjusted diluted earnings per share
Definition (see also financial definitions on pages 240 and 241)
Attributable earnings before exceptional items divided by the average number of shares in issue as adjusted for the dilutive impact of equity share awards
Performance
FY2022 Focus
To achieve adjusted diluted EPS growth in real terms
Links to other Disclosures
Group CFO Review
KPI
Basic earnings per share
Definition (see also financial definitions on pages 240 and 241)
Attributable earnings divided by the average number of shares in issue as adjusted for the dilutive impact of equity share awards
Performance
FY2022 Focus
To achieve EPS growth in real terms
Links to other Disclosures
Group CFO Review
KPI
Free Cash Flow
Definition (see also financial definitions on pages 240 and 241)
Free Cash Flow is a non GAAP measure that comprises cash flow from operating activities net of capital investment cash outflows which form part of investing activities (before exceptional items)
Performance
FY2022 Focus
To generate improved operating cash flows
Links to other Disclosures
Group CFO Review
KPI
Free Cash Flow Conversion Ratio
Definition (see also financial definitions on pages 240 and 241)
The conversion ratio is the ratio of free cash flow as a percentage of EBITDA (before exceptional items)
Performance
FY2022 Focus
To generate improved operating cash flows
Links to other Disclosures
Group CFO Review
KPI
Net debt: Adjusted EBITDA
Definition (see also financial definitions on pages 240 and 241)
The ratio of net debt (Net debt comprises borrowings (net of issue costs) less cash less leased liabilities) to Adjusted EBITDA
Performance
FY2022 Focus
Move towards medium term target of 2.0 times Net Debt/adjusted EBITDA (excluding leased liabilities)
Links to other Disclosures
Group CFO Review
KPI
Liquidity
Definition (see also financial definitions on pages 240 and 241)
Liquidity (liquidity comprises cash on hand and headroom available in the Group’s revolving credit facility) as part of our renegotiated covenants
Performance
FY2022 Focus
Ensure sufficient liquidity to meet the on-going requirements of the business and execute its strategy
Links to other Disclosures
Group CFO Review
KPI
Net debt
Definition (see also financial definitions on pages 240 and 241)
Net debt (net debt comprises borrowings (net of issue costs) less cash)
Performance
FY2022 Focus
Links to other Disclosures
Group CFO Review
KPI
Progressive dividend/return to shareholders
Definition (see also financial definitions on pages 240 and 241)
Total dividend per share paid and proposed in respect of the financial year in question
Performance
FY2022 Focus
The Group will continue to seek to enhance shareholder returns
Links to other Disclosures
KPI
Dividend Payout Ratio
Definition (see also financial definitions on pages 240 and 241)
Dividend cover is Dividend/Adjusted diluted EPS
Performance
FY2022 Focus
The Group will continue to seek to enhance shareholder returns
Links to other Disclosures
KPI
Reduction in CO2 emissions
Definition (see also financial definitions on pages 240 and 241)
Tonnes of CO2 emissions***
Performance
FY2022 Focus
To achieve best practice across the Group, including acquired businesses
Links to other Disclosures
Responsibility Report
KPI
Waste recycling
Definition (see also financial definitions on pages 240 and 241)
Tonnes of waste sent to landfill
Performance
FY2022 Focus
To achieve best practice across the Group, including acquired businesses
Links to other Disclosures
KPI
Workplace safety accident rate
Definition (see also financial definitions on pages 240 and 241)
The number of injuries that resulted in lost-work days, per 100,000 hours working time in production facilities
Performance
FY2022 Focus
To achieve best practice across the Group, including acquired businesses
Links to other Disclosures
Responsibility Report
* COVID-19 had a material impact on KPIs in FY2021.
** During the current financial year, the Group completed a Rights Issue at a discounted price of £1.86. As the rights price was issued at a discount, this was equivalent to a bonus issue of shares combined with a full market price. As such, IAS 33 Earnings Per Share requires an adjustment to the number of shares outstanding before the Rights Issue to reflect the bonus element inherent in it and also for this to be included in the EPS calculation for the prior period presented so as to provide a comparable result.
*** Market based scope 1 and 2 emissions as stated in annual Carbon Disclosure Project return.