Diageo PLC

Latest Results (20.08.2024):

Net Sales

For the year ended 30 June 2024, Diageo PLC reported net sales of $20.3 billion, reflecting a decline of 1.4% compared to the previous year. This decrease was primarily due to an unfavorable foreign exchange impact and a decline in organic net sales, partially offset by hyperinflation adjustments. Organic net sales declined by 0.6%, with positive price/mix of 2.9 percentage points being more than offset by a 3.5% volume decline, mainly driven by a 21.1% decline in the Latin America and Caribbean region.

Operating Profit

Diageo PLC's reported operating profit for the year ended 30 June 2024 grew by 8.2% to $6.0 billion. This growth was primarily driven by the positive impact of exceptional operating items, which offset a decline in organic operating profit. Organic operating profit declined by 4.8%, largely due to a $302 million decrease in the Latin America and Caribbean region and a $142 million decline in North America.

Free Cash Flow

Diageo PLC saw an increase in net cash flow from operating activities, which rose by $0.5 billion to $4.1 billion for the year ended 30 June 2024. Free cash flow also increased by $0.4 billion, reaching $2.6 billion. This improvement in cash flow was achieved despite the challenging operating environment and reflects the company's focus on strategic investments and productivity savings.

Dividends

For the year ended 30 June 2024, Diageo PLC increased its recommended full-year dividend by 5% to 103.48 cents per share. This decision underscores the company's commitment to returning value to shareholders, even amid a volatile operating environment. The increase in dividends is supported by the company's strong cash flow generation and resilient performance.

Market Share and Strategic Actions

Diageo PLC managed to grow or hold its total market share in over 75% of its measured markets during the year ended 30 June 2024. The company took several strategic actions to navigate the challenging environment, including managing inventory issues in the Latin America and Caribbean region, strengthening consumer insights, and redeploying resources towards growth opportunities. These efforts are expected to position Diageo well for future growth as the consumer environment improves.