Highlights: Full Year
LFL Net Revenue growth of +3%. Total Net Revenue growth (at actual rates) of +11% reflecting the net positive impact of translational FX and M&A.
Geographic growth - ENA1 performance LFL +1% and DvM1 performance LFL +8%. Negative impact of Korea HS issue of -1% on Group and -3% on DvM.
Health & Hygiene led growth of LFL +4%. Health growth +4% LFL reflected broad-based growth across the portfolio, offset by Scholl / Amopé decline.
Gross margin expansion +180bps to 60.9%, driven by mix, commodity cost tailwinds and cost optimisation initiatives.
Continuing investment in brand equity. BEI +£63m (constant) +50bps to 13.2% of net revenue.
Adjusted operating margin up +130bps to 28.1%.
Adjusted net income growth of +15% (+4% constant); adjusted diluted EPS of 302.0p (+17%).
Exceptional costs of £367m were charged in the year, principally in respect of Korea.
Reported net income increased by +5% (-5% constant); reported diluted EPS of 256.5p (+6%).
Strong free cash flow generation of £2,036m.
The Board recommends a final dividend of 95.0p per share (2015: 88.7p). Total dividend for 2016 153.2p (2015: 139.0p), an increase of +10%.
