Cadbury Schweppes Issues 2004 Results in Accordance with IFRS

19 May 2005 - Cadbury Schweppes plc has adopted International Financial Reporting Standards ("IFRS") with effect from 3 January 2005. IFRS is the required reporting basis for all EU listed companies from 2005. In line with best practice, Cadbury Schweppes has today issued 2004 results for the half and full year prepared under IFRS. These results were announced previously under UK GAAP.

• The change in reporting principally impacts the following areas: goodwill amortisation; share awards; pensions; deferred tax; and financial instruments.
  
• Under IFRS our 2004 underlying operating profit (excluding goodwill/brand intangibles amortisation/impairment, restructuring costs and non-trading items) is 4% lower and our underlying earnings are 6% lower than under UK GAAP.
  
• Under IFRS our 2004 net assets are £788 million lower than under UK GAAP.  This is primarily due to full inclusion of the pension fund deficit and the provision of deferred tax in relation to brand intangibles arising from past acquisitions.  The provision for deferred tax has no impact on the Group's distributable reserves or ability to pay dividends.
  
• The change to IFRS has no impact on free cash flow generation.
  
• Our financial goal ranges remain the same.  The 2004 results as restated under IFRS will form the base from which we will show underlying revenue and underlying operating margin growth.
  
• The 2004 results as restated under IFRS will form the comparative base for Cadbury Schweppes' interim and full year results for 2005