Glenmorangie PLC

Interim Results

Glenmorangie PLC
19 November 2003


Date:                         19th November 2003

On behalf of:                 Glenmorangie plc

Embargoed until:              0700 hrs



Glenmorangie plc

Interim Results to 30th September 2003


Brand Growth Provides Continued Progress

Glenmorangie plc, distillers and international marketers of premium malt Scotch
Whisky brands including Glenmorangie, Ardbeg and Glen Moray, announces its
Interim Results for the six months ended 30th September 2003.  The main
highlights of today's announcement are:


•   Turnover up 3% to £31.59 million (2002: £30.53 million)

•   Profit before tax and exceptionals increased by 8% to £4.22 million (2002: 
    £3.91 million)

•   Strong performance by the Group's three malt brands in their key markets

•   Earnings per 'A' Ordinary Share (limited voting rights) increased by 12% 
    from 19.16p per share to 21.45p per share.  Earnings per 'B' Ordinary Share
    increased by 12% from 9.50p per share to 10.63p per share

•   Dividends up 7% to 4.50p per 'A' Ordinary Share (limited voting rights)
    and 2.25p per 'B' Ordinary Share, reflecting continued confidence in the 
    Group's prospects (2002: 4.20p and 2.10p respectively)


Commenting on the results, Paul Neep, Chief Executive, said:

'We continue to make good progress against all our strategic objectives.  Sales
and profits have increased in the period and all our malt brands have grown.

'Our strategic partnerships with Brown-Forman, Bacardi-Martini and The Drambuie
Liqueur Company continue to support the growth of our malt brands and making
best use of our assets.

'These are uncertain economic times, with an environment towards higher interest
rates in the UK which could impact consumer spending.  Against this, our brands
have demonstrated their ability to grow, even in challenging times, and we enter
our second half with strong marketing and sales programmes in place for the key
Christmas trading period.'

For Further Information

Glenmorangie plc
Paul Neep, Chief Executive                                       01506 852929
Iain Hamilton, Finance Director/Deputy Chief Executive           01506 852929
Barbara Anne Nimmo, Corporate Communications Manager             07808 713875

Glenmorangie website:                                 www.glenmorangieplc.com

Redleaf Communications Ltd

Emma Kane/Nick Lambert                                          020 7955 1410
                                                           Mob:  07876 338339


Notes to Editors:

•    Publication quality photographs are available from www.redleafpr.com

•    Glenmorangie plc also offers shareholder benefits on a range of items
     including its Scotch malt whiskies, invitations to visit its distilleries 
     and breaks at Glenmorangie House


CHAIRMAN'S STATEMENT

I am pleased to report that your Group continues to make good progress in
meeting its strategic objectives.  Sales and profits have increased and our malt
brands have grown well.


Strategy and Performance

Developing and building our premium brands for the long term remains our key
imperative.  It is very pleasing to report that consumer sales of Glenmorangie,
Glen Moray and Ardbeg all continued to grow well in the period.  These successes
were supported by our strategic sales and marketing partnerships with
Bacardi-Martini and the Brown-Forman Corporation and by increased marketing
investment, again ahead of sales.

Our strategy also seeks to gain progressively increased value from our assets.
Our continued growth in cased sales volumes is delivering improved value from
our asset base which is then available for investment behind our brands.  We
enjoyed a contribution from Glenaird Limited, our supply chain partnership with
The Drambuie Liqueur Company Limited, very much in line with expectations.  Our
warehousing facilities and distilleries continue to operate close to capacity
whilst our visitor centres had very successful seasons in support of our malt
brands.

More detailed coverage of operating performance is included in the Chief
Executive's Review.


Financial Results

Turnover for the period rose by 3% generating a 12% increase in pre-tax profit
to £4.22 million.  Operating profit at £5.23 million was 6% ahead, representing
16.6% of turnover, up from last year's 16.2% as a result of strong branded sales
and good cost control.

The Group reduced its borrowings against the comparable period in 2002.  Gearing
has moved down from 49% to 45% with interest cover rising to 5.18 times.

All aspects are fully covered in the Finance Director's Review.



Dividend

The Board is pleased to announce a 7% increase in the Interim Dividend to 4.50p
per 'A' Ordinary Share (limited voting rights) and to 2.25p per 'B' Ordinary
Share.  This dividend increase, again well ahead of inflation, recognises the
progress the Group continues to make but also begins to raise the relative
weighting of the payout at this Interim stage to bring it progressively more
into line with the normal split of profitability between our first and second
halves.  The dividend will be paid on 9th January 2004 to shareholders on the
register on 19th December 2003 (Ex Dividend Date 17th December 2003).


Outlook

The outlook for a sustained recovery of world economies continues to be
uncertain, and we anticipate the medium term environment towards higher UK
interest rates could impact consumer spending in our home market.  Your Group
would not be insulated from any future economic slowdown.  Against this, our
brands have demonstrated their ability to grow, supported by strong marketing
and sales programmes, even in challenging times. We remain confident that we can
continue to grow shareholder value over the long term.


Keith G. Edelman
Non-Executive Chairman
19th November 2003


CHIEF EXECUTIVE'S REVIEW

Our premium malt brands continue to develop and grow well in line with our prime
objective.  The Glenmorangie brand grew ahead of the category in nearly all its
key markets.  Consumer sales of Ardbeg continue to increase and Glen Moray has
again performed well in its focus markets.

We again invested strongly behind our malt brands in advertising, relationship
marketing, consumer education and promotional activities, and have again
increased total marketing spend ahead of sales.

Our strategic sales and marketing partnership with the Brown-Forman Corporation
continues to develop, with strong relationships existing between our two
companies and our country distributors.  This partnership will continue to
assist us, over the medium term, to accelerate the growth of our malt brands
most particularly in the USA and Continental Europe including selected emerging
markets in Eastern Europe.

From February 2003, Bacardi-Martini became the distributor of the Glenmorangie
brand in Germany, Spain, The Netherlands, Austria and Switzerland.  This move
widens an already successful relationship in the UK and a number of other key
European markets and creates pan-European distribution for the Glenmorangie
brand.  As Brown-Forman's key brands are also distributed by Bacardi-Martini in
most European markets, aligning the distribution network, thus, also supports
their representation of our malt brands.  We believe that this important change,
which is now bedded-in, will, over the long term, further assist the development
of our brands in the important Continental European spirits markets.

Our second strategic objective is focused on driving improved utilisation of our
assets.  Both Glenmorangie and Glen Moray Distilleries operated at near full
capacity and utilisation at Ardbeg Distillery continues to rise.  The recent
expansion of the Glenmorangie Distillery is now providing additional whisky
stocks to support the forecasted long term growth of the brand.  The distillery
visitor centres have had another successful season and work will start in
January to improve the visitor centre facilities at the Glen Moray Distillery.
Overall visitor numbers and revenues are ahead of last year.

We have increased production at our Broxburn facility once again at a lower cost
per case.  Glenaird Ltd continues to operate very smoothly.  In July we started
bottling Drambuie Sylk, their new cream spirit brand recently introduced into
the USA.  Our Operation's focus remains on generating enhanced supply chain
efficiencies and on providing excellent levels of quality and customer service.


Brands and Markets

Overall, our branded malt whisky sales volumes grew by 9%, with shipments up 10%
for Glenmorangie and 8% for Glen Moray.  Shipments of Ardbeg declined by 3% due
to phasing, with underlying consumer sales continuing to grow well.

The Glenmorangie brand continued to outperform its competitors in most of its
key markets.  In the UK, Glenmorangie's market share has again grown as a result
of focused consumer marketing supported by the excellent trade marketing
strengths of our distributor, Bacardi-Martini.   We continue to invest in our
successful 'Glen of Tranquility' TV advertising campaign which is 'on air' for
the Christmas sales period and we continue to advertise in cinemas.

Glenmorangie Burgundy Wood Finish has very recently been introduced as a
permanent extension to our successful Wood Finishes Range, further exploiting
our expertise in wood management.  This is Glenmorangie which has been initially
matured in American oak casks then finished in Burgundy 'Barriques' from the
Cote d'Or.

In Continental Europe, Glenmorangie consumer sales grew in nearly all markets
ahead of the malt category, with particularly strong performances in the UK, USA
and Duty Free/Travel Retail.   In France, although malt category volumes were
behind last year in an overall depressed spirits category, Glenmorangie
increased its market share.  Our new pan-European distribution agreement with
Bacardi-Martini is now bedded-in and will, over the medium term, promote
enhanced growth of the Glenmorangie brand.

In the USA, the Glenmorangie brand again grew ahead of the malt whisky category.
New relationship marketing programmes, brand education initiatives and PR are
providing very targeted marketing support for the brand in its key states.

Scotch malt whisky sales in Canada continue to develop with Glenmorangie growing
at nearly twice the rate of the category.  In Japan our brand grew in line with
the category.

The Islay sector continues to be fast growing within the malt whisky market.
Ardbeg continues as the fastest growing Islay malt brand.  In the UK, consumer
sales are up strongly and Ardbeg has recently become a top 10 malt brand in the
off-trade sector.  In other key markets, the brand continues to grow in line
with expectations.  The 'Ardbeg Committee', our engaging relationship marketing
programme widened by increased internet activity, continues to build contacts
with an increasing number of Ardbeg fans worldwide.  Sales growth will, however,
be more restricted in the medium term due to the limited stocks inherited with
this distillery which was mothballed throughout the 1980s.

Glen Moray is positioned as a quality and well packaged mid-priced malt.  The
key focus for the brand is the off-trade in the UK, USA and France.  Glen Moray
has now moved up to be the number five leading malt by volume in the UK
off-trade.  Sales in its other focus markets have also grown well.

Consumer sales of Martin's Deluxe, our super-premium blended Scotch focused
largely on Portugal, have again grown.  Nonetheless, the majority of annual
sales for this brand occur in the final calendar quarter of any year.  We have
recently introduced a limited edition Martin's Pure Malt to extend the highly
successful Martin's franchise in Portugal.

The Bailie Nicol Jarvie, our premium blend, continues to grow consumer sales in
the UK.  Sales of our branded blends, including Highland Queen and Martin's VVO,
are also ahead of the same period last year.

We continue to grow our share of retail exclusive and private label malts and
blends in the UK.  Through category management, product development and the
provision of excellent customer service, we continue to build relationships with
major retailers in this sector for the benefit of this volume business and our
premium brands.


Operations and Distilleries

We have again increased output at our Broxburn facility and achieved a lower
cost of production per case.  Our Operations focus is on providing world class
levels of quality and customer service whilst progressively achieving
incremental supply chain efficiencies.  Glenaird Ltd, which is now
ISO-9000-2000 Quality Certified, is fully integrated with our day-to-day
operations and working well; we are achieving the anticipated supply chain
benefits from this important association.  Our warehousing facilities continue
to be almost fully utilised with improved rentals per cask space again being
achieved.

At our distilleries, the focus remains on spirit quality, production efficiency
and legislative compliance.  The increased output at our distilleries again
demonstrates confidence in the future of our brands.  We are now utilising the
additional capacity recently added at Glenmorangie Distillery whilst at Ardbeg
on Islay we are now operating at over 90% of capacity.

Glenmorangie House, with its 5 Star Visit Scotland and two AA Rosette ratings,
which is located close to the Glenmorangie Distillery, has had a good season.
(Once again, there are special offers available for all shareholders to enjoy
the hospitality of Glenmorangie House - details of these can be found in the
Shareholder Offer Brochure.)


Prospects

Glenmorangie plc has a clear and robust strategy and remains committed to
delivering increased shareholder value over the long term through the continued
development of its core malt brands.   Our strategic partnership with the
Brown-Forman Corporation, now supported by our pan-European distribution of
Glenmorangie through Bacardi-Martini, strongly facilitates our achieving that
principal strategic objective.

We continue to increase supply chain efficiencies and are obtaining the expected
benefits from our strategic partnership with The Drambuie Liqueur Company.
Overall, these three strategic partnerships have substantially strengthened the
Group.

However, against this we continue to operate in very uncertain economic and
political times with progressively higher UK interest rates and reduced consumer
spending in prospect.  Nonetheless, we enter our second half with strong sales
programmes in place for the vital Christmas trading period supported by focused
marketing behind our brands.

The Board remains confident that Glenmorangie plc can continue to grow
shareholder value for the long term.

Paul A. Neep
Chief Executive
19th November 2003



FINANCE DIRECTOR'S REVIEW

The Group's turnover for the period grew by 3% to £31.59 million reflecting
continued progress for our malt brands supported by increased bottling and
related services and supply of bulk whiskies for blending predominantly via our
Drambuie partnership.  Overall cased turnover rose by 2% with our malt brands
performing strongly in consumer terms across their key markets.


Turnover is analysed as follows:
                                                              2003              2002
                                                                £m                £m                 %
Cased                                                        23.44             23.10                +2
Bulk                                                           5.2              4.61               +13
Warehouse rents                                               0.80              0.84                -5
Other                                                         2.13              1.98                +8
                                                             31.59             30.53                +3


Profit before tax rose by 12% to £4.22 million.  Excluding the exceptional loss
reflected in last year's results, underlying profit rose by 8% reflecting growth
in our malt brands and in overall revenues allied to good cost control.  Despite
continuing to invest strongly in brand marketing ahead of sales for their future
benefit, operating profit as a percentage of turnover rose to 16.6% from 16.2%
last year.

Assuming a 31% tax charge as last year, basic earnings per share rose by 12% to
21.45p per 'A' Ordinary Share (limited voting rights) and 10.63p per 'B'
Ordinary Share.

We continued to invest strongly in bulk whisky stocks behind the projected
further growth of our brands.  Nonetheless, we have once again reduced our
borrowings against the same point in the prior year, down from £36.95 million to
£36.19 million.  Gearing also falls to 45% from 49% last year, whilst interest
cover (excluding exceptionals) rises from 4.76 times to 5.18 times this period.
We would expect gearing to be lower again at the year end.



Summary

The Group has had another strong period with consumer sales of our malt brands
growing well, supported by our strategic partnerships with Brown-Forman and
Bacardi-Martini, improved utilisation and value being gained from our
infrastructure and our cost base being well controlled.  In support of the long
term growth of our brands, we continued to invest in marketing ahead of sales
and to lay down increasing whisky stocks.  We remain confident in the future
potential of these key brand assets and in their ability to drive increased
shareholder value for the long term.

Our financial strength continues to improve from an already strong base and we
anticipate continued progress in growing both our brands and value for
shareholders over the long term.

Iain L. Hamilton
Finance Director
19th November 2003



Consolidated Profit and Loss Account
For the six months ended 30th September 2003

                                                   30.09.03           30.09.02            31.03.03
                                                 (unaudited)        (unaudited)           (audited)
                                                     £000               £000                 £000

Turnover                                           31,589              30,534               64,645

Operating Costs                                    26,356              25,590               53,665

Operating Profit                                    5,233               4,944               10,980
Exceptional Item:
Distributor rationalisation costs                       -                 150                  208
Interest payable                                    1,010               1,039                2,051
Profit on Ordinary Activities before Taxation       4,223               3,755                8,721
Taxation                                            1,309               1,164                2,628

Profit Attributable to Members of the Parent
Undertaking                                         2,914               2,591                6,093
Ordinary dividends on equity shares                   633                 573                2,593

Retained Profit                                     2,281               2,018                3,500

Earnings per Ordinary Share
Basic:
'A' Ordinary Share (limited voting rights) of 10p   21.45p              19.16p               45.02p
'B' Ordinary Share of 5p                            10.63p               9.50p               22.33p
Diluted:
'A' Ordinary Share (limited voting rights) of 10p   21.38p              19.08p               44.86p
'B' Ordinary Share of 5p                            10.63p               9.50p               22.33p
Dividends per Ordinary Share:
'A' Ordinary Share (limited voting rights) of 10p   4.50p                4.20p               19.00p
'B' Ordinary Share of 5p                            2.25p                2.10p                9.50p




Consolidated Statement of Total Recognised Gains and Losses
For the six months ended 30th September 2003


                                                   30.09.03            30.09.02           31.03.03
                                                 (unaudited)         (unaudited)          (audited)
                                                    £000                 £000                £000

Profit attributable to members of the parent        2,914                2,591               6,093
undertaking


Copies of this report are sent to all shareholders and are available to members
of the public at the Company's Registered Office.


Consolidated Balance Sheet
As at 30th September 2003

                                                        30.09.03         30.09.02         31.03.03
                                                      (unaudited)      (unaudited)       (audited)
                                                          £000             £000             £000

Fixed Assets                                             40,283           40,917           40,661

Net Current Assets
Stocks                                                   80,864           74,731           77,325
Debtors                                                  17,145           17,391           10,672
Creditors and Provisions                                (22,165)         (20,149)         (18,197)
                                                         75,844           71,973           69,800

Net Borrowings                                          (36,191)         (36,948)         (33,037)
                                                         79,936           75,942           77,424

Capital and Reserves
Share Capital                                             1,370            1,365            1,365
Reserves                                                 78,566           74,577           76,059
                                                         79,936           75,942           77,424





Consolidated Statement of Cash Flows
For the six months ended 30th September 2003


                                                        30.09.03         30.09.02         31.03.03
                                                        (unaudited)      (unaudited)      (audited)
                                                           £000            £000              £000

Net Cash Inflow from Operating Activities                   764              645           9,449
Returns on Investments and Servicing of Finance            (985)          (1,046)         (1,999)
Taxation                                                      8              (62)         (2,343)
Capital Expenditure and Financial Investment             (1,237)            (774)         (2,005)
Equity Dividends Paid                                    (2,034)          (1,911)         (2,484)

Cash (Outflow)/Inflow before Financing                   (3,484)          (3,148)            618
Financing                                                 5,476              197          (5,112)

Increase/(Decrease) in Cash in the Period                 1,992           (2,951)         (4,494)




Reconciliation of Net Cash Flow to Movement in Net Debt
For the six months ended 30th September 2003

                                                        30.09.03         30.09.02         31.03.03
                                                        (unaudited)      (unaudited)      (audited)
                                                            £000            £000             £000

Increase/(Decrease) in Cash in the Period                 1,992           (2,951)         (4,494)
Cash Inflow from (Increase)/Decrease in Debt             (5,245)            (197)          5,112

Changes in Debt Resulting from Cash Flows                (3,253)          (3,148)            618
Effect of Foreign Exchange Rate Changes on Net Debt          99                5             150

Movement in Net Debt in the Period                       (3,154)          (3,143)            768
Net Debt at the Beginning of the Period                 (33,037)         (33,805)        (33,805)

Net Debt at the End of the Period                       (36,191)         (36,948)        (33,037)




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