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Name | Symbol | Market | Type |
---|---|---|---|
Diageo Plc | NYSE:DEO | NYSE | Depository Receipt |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.61 | -0.44% | 138.63 | 140.22 | 138.42 | 140.16 | 579,411 | 18:08:06 |
|
Delivered strong net sales growth, with growth across all
regions
-
Reported net sales of £9.4 billion, increased 18.4%, primarily
reflecting strong organic net sales growth as well as favourable
impacts from foreign exchange, mainly due to the strengthening of
the US dollar.
-
Organic net sales grew 9.4%, with growth in all regions. Price/mix
of 7.6 percentage points reflects a high single-digit price
contribution to net sales growth, premiumisation and organic volume
growth of 1.8%.
-
Growth was enabled by our diversified footprint, advantaged
portfolio, strong brands and underpinned by favourable industry
trends of premiumisation.
|
|
|
Resilient operating margin despite increased cost
inflation
-
Reported operating profit grew 15.2% to £3.2 billion. Reported
operating margin declined by 92bps, with organic margin expansion
more than offset by exceptional operating items and foreign
exchange.
-
Organic operating profit grew 9.7% and organic operating margin
expanded by 9bps, driven by leverage on operating cost reflecting
disciplined cost management, despite inflation.
- Price
increases and supply productivity savings more than offset the
impact of absolute cost inflation on gross margin.
|
|
|
Advantaged portfolio and premiumisation drove market share
growth
- Growth was delivered across most categories,
primarily scotch, tequila and beer.
-
Premium-plus brands contributed 57% of reported net sales and drove
65% of organic net sales growth.
- Total trade market share grew or
held in over 75%(1) of total net
sales value in measured markets.
|
|
|
Continued optimisation of portfolio through acquisitions and
disposals
-
Acquired Mr Black, a leading Australian premium-priced coffee
liqueur, and Balcones Distilling, a Texas craft distiller and one
of the leading producers of American single malt
whisky.
-
Announced an agreement to acquire Don Papa rum, a super-premium,
dark rum from the Philippines.
-
Agreed to dispose of Guinness Cameroon S.A., disposed of Archers
and completed the disposal and franchising of a portfolio of brands
in India.
|
|
|
Invested to sustain long-term growth
-
Increased organic marketing investment by 6.8%, reflecting strong,
consistent investment in our brands.
-
Invested £0.4 billion of capex in supply capacity,
sustainability, digital capabilities and consumer
experiences.
|
|
|
Cash flow generation
- Net
cash flow from operating activities declined by £0.7 million
to £1.2 billion.
- Free
cash flow of £0.8 billion, declined £0.8 billion.
Operating profit and positive foreign exchange impact were offset
by higher year-on-year working capital outflow primarily due to
lapping a larger increase in creditors, phasing of spend and higher
tax payments.
-
Strong balance sheet, with leverage ratio(2) of 2.5x as at
31 December 2022, at the lower end of our target range, as a result
of strong profit performance.
|
|
|
Continued progress in delivering Society 2030 ESG goals and doing
business the right way
- Launched 'Drops of Advice', a new global festive
responsible drinking campaign.
- Announced plans for a hydrogen powered furnace in
the UK to create the world's first net zero glass bottles to be
produced at scale.
-
Diageo North America was named in the Top 10 Inclusive Companies
for 2022.
-
Included in Dow Jones World Sustainability Index for the fifth
consecutive year.
|
|
|
Continued creation of long-term shareholder value
-
Increased basic eps by 19.7% to 100.9 pence and pre-exceptional eps
by 15.2% to 98.6 pence.
-
Increased declared interim dividend by 5% to 30.83 pence per
share.
- Total shareholder return was 5%, in the top half
of our peer group.
-
Expect to complete remaining £0.3 billion of current programme
to return up to £4.5 billion of capital to shareholders in
February 2023 and return up to an additional £0.5 billion in
fiscal 23.
|
|
Financial performance
|
|
|||||||||
Volume (equivalent units)
|
Operating profit
|
|
Earnings per share (eps)
|
|
||||||
EU136.8m
|
|
|
£3,161m
|
|
|
|
100.9p
|
|
|
|
(F22 H1: EU 140.2 m)
|
|
|
(F22 H1: £2,743m)
|
|
|
|
(F22 H1: 84.3p)
|
|
|
|
Reported movement
|
(2)%
|
↓
|
Reported movement
|
15%
|
↑
|
|
Reported movement
|
20%
|
↑
|
|
Organic
movement(3)
|
2%
|
↑
|
Organic
movement(3)
|
10%
|
↑
|
|
Eps
before exceptional items(3)
|
15%
|
↑
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
Net cash from operating activities
|
|
Interim dividend per share
|
|
||||||
£9,420m
|
|
|
£1,248m
|
|
|
|
30.83p
|
|
|
|
(F22 H1: £7,957m)
|
|
|
(F22 H1: £1,947m)
|
|
|
|
(F22 H1: 29.36p)
|
|
|
|
Reported movement
|
18%
|
↑
|
F23 H1
free cash flow(3) £817m
|
|
|
|
Increase
|
5%
|
↑
|
|
Organic
movement(3)
|
9%
|
↑
|
F22 H1
free cash flow(3) £1,575m
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
F23 H1
|
F22 H1
|
Organic growth
%
|
Reported growth
%
|
Volume
|
EUm
|
136.8
|
140.2
|
2
|
(2)
|
Net sales
|
£ million
|
9,420
|
7,957
|
9
|
18
|
Marketing
|
£ million
|
1,577
|
1,351
|
7
|
17
|
Operating profit before exceptional items
|
£ million
|
3,194
|
2,743
|
10
|
16
|
Exceptional
operating items(1)
|
£ million
|
(33)
|
-
|
|
|
Operating profit
|
£ million
|
3,161
|
2,743
|
|
15
|
Share of associate and joint venture profit after tax
|
£ million
|
172
|
190
|
|
(9)
|
Non-operating
exceptional items(1)
|
£ million
|
16
|
(31)
|
|
|
Net finance charges
|
£ million
|
(292)
|
(180)
|
|
|
Exceptional
taxation credit/(charge)(1)
|
£ million
|
70
|
-
|
|
|
Tax rate including exceptional items
|
%
|
21.3
|
23.3
|
|
(9)
|
Tax rate before exceptional items
|
%
|
23.4
|
23.0
|
|
2
|
Profit attributable to parent company's shareholders
|
£ million
|
2,295
|
1,965
|
|
17
|
Basic earnings per share
|
pence
|
100.9
|
84.3
|
|
20
|
Basic earnings per share before exceptional items
|
pence
|
98.6
|
85.6
|
|
15
|
Interim dividend
|
pence
|
30.83
|
29.36
|
|
5
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit before exceptional items
|
Operating profit
|
|||||
|
%
|
EUm
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
North America
|
(4)
|
(1.0)
|
19
|
553
|
18
|
101
|
10
|
124
|
8
|
98
|
Europe
|
(1)
|
(0.2)
|
13
|
227
|
7
|
21
|
13
|
81
|
15
|
95
|
Asia Pacific
|
(4)
|
(2.0)
|
20
|
306
|
15
|
39
|
30
|
136
|
25
|
115
|
Latin America and Caribbean
|
7
|
1.0
|
34
|
281
|
42
|
52
|
41
|
138
|
41
|
138
|
Africa
|
(6)
|
(1.2)
|
9
|
75
|
10
|
10
|
2
|
4
|
2
|
4
|
Corporate
|
-
|
-
|
91
|
21
|
50
|
3
|
(26)
|
(32)
|
(26)
|
(32)
|
Diageo
|
(2)
|
(3.4)
|
18
|
1,463
|
17
|
226
|
16
|
451
|
15
|
418
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit before exceptional items
|
||||
|
%
|
EUm
|
%
|
£ million
|
%
|
£ million
|
%
|
£ million
|
North America
|
(4)
|
(1.1)
|
3
|
88
|
2
|
13
|
(2)
|
(26)
|
Europe
|
0
|
(0.1)
|
10
|
164
|
3
|
9
|
19
|
106
|
Asia Pacific
|
10
|
3.6
|
17
|
250
|
9
|
24
|
27
|
119
|
Latin America and Caribbean
|
6
|
0.9
|
20
|
167
|
29
|
37
|
20
|
69
|
Africa
|
(5)
|
(1.0)
|
6
|
52
|
8
|
8
|
12
|
23
|
Corporate
|
-
|
-
|
91
|
21
|
33
|
2
|
(23)
|
(30)
|
Diageo
|
2
|
2.3
|
9
|
742
|
7
|
93
|
10
|
261
|
Net sales
|
£ million
|
F22 H1
|
7,957
|
Exchange(1)
|
669
|
Acquisitions and disposals
|
(33)
|
Hyperinflation(2)
|
85
|
Volume
|
142
|
Price/mix
|
600
|
F23 H1
|
9,420
|
Operating profit
|
£ million
|
F22 H1
|
2,743
|
Exceptional
operating items(1)
|
(33)
|
Exchange
|
201
|
Acquisitions and disposals
|
(19)
|
FVR(2)
|
(12)
|
Hyperinflation(3)
|
20
|
Organic movement
|
261
|
F23 H1
|
3,161
|
Basic earnings per share
|
pence
|
F22 H1
|
84.3
|
Exceptional
items after tax(2)
|
3.6
|
Exchange on operating profit
|
8.6
|
Acquisitions
and disposals(3)
|
(0.8)
|
Organic operating profit
|
11.1
|
Associates and joint ventures
|
(0.8)
|
Finance
charges(4)
|
(3.5)
|
Tax(5)
|
(4.0)
|
Share buyback
|
1.5
|
Non-controlling interests
|
0.5
|
FVR(6)
|
(0.5)
|
Hyperinflation
(operating profit)(7)
|
0.9
|
F23 H1
|
100.9
|
Free cash flow
|
£ million
|
F22 H1 Net cash from operating activities
|
1,947
|
F22 H1 Capex and movements in loans and other
investments
|
(372)
|
F22 H1 Free cash flow
|
1,575
|
Exchange(2)
|
201
|
Operating
profit(3)
|
238
|
Working
capital(4)
|
(855)
|
Capex
|
(54)
|
Tax
|
(258)
|
Interest
|
(38)
|
Other(5)
|
8
|
F23 H1 Free cash flow
|
817
|
F23 H1 Capex and movements in loans and other
investments
|
431
|
F23 H1 Net cash from operating activities
|
1,248
|
Return on average invested capital
|
ppt
|
F22 H1
|
19.3
|
Exchange
|
0.51
|
Acquisitions and disposals
|
(0.31)
|
Organic operating profit
|
2.17
|
Associates and joint ventures
|
(0.35)
|
Tax
|
(0.94)
|
Other
|
(0.71)
|
F23 H1
|
19.7
|
● Reported net sales grew 19%, primarily driven
by a favourable impact from foreign exchange, mainly due to the
strengthening of the US dollar, and organic growth.
|
● Organic net sales grew 3%, lapping strong
double-digit growth in the first half of fiscal 22, reflecting
growth in all markets and holding share of TBA. Strong price/mix
growth more than offset an organic volume decline.
|
● Growth was primarily driven by tequila, which
grew 24%, as well as double-digit growth in US whiskey and
spirit-based ready to drink. This more than offset the declines in
vodka, Canadian whisky, and scotch.
|
● US Spirits net sales grew 2%, lapping strong
double-digit growth in the first half of fiscal 22. Depletions
value growth was ahead of shipments by approximately one percentage
point with some variations across certain brands.
|
● Diageo Beer Company USA (DBC USA) net sales
grew 3%, reflecting 14% growth in Guinness, partially offset by a
decline in flavoured malt beverages.
|
● Organic operating margin declined by 206bps,
primarily driven by cost inflation and an adverse category mix.
Strategic price increases, productivity savings and lower
discretionary expenditures more than offset the absolute impact of
cost inflation, and mostly offset the adverse impact on gross
margin.
|
● Marketing investment grew 2% ahead of prior
year as we continue to support growth across key categories,
primarily tequila and Canadian whisky.
|
North America contributed
|
|
North America organic net sales grew
|
37% of Diageo reported net sales in
first half of fiscal 23
|
|
3% in first half of fiscal
23
|
● Reported
net sales grew 13%, driven by organic growth and the hyperinflation
adjustment(1) related
to Turkey, partially offset by an unfavourable impact from foreign
exchange.
|
● Organic
net sales grew 10%, with growth across all markets except Eastern
Europe, which was impacted by the winding down of our operations in
Russia.
|
● Growth
was mainly driven by price increases and continued premiumisation,
while holding volume. The on-trade benefitted from continued
recovery, particularly in Southern Europe which was supported by
stronger tourism.
|
● Spirits
net sales grew 9%, with growth across key categories, in particular
scotch and vodka.
|
● Beer
net sales grew 18%. Guinness volume grew 6%, and net sales
increased 19% driven by price increases and further recovery in the
on-trade in Ireland and Great Britain.
|
● Organic
operating margin expanded by 286bps, driven by price increases,
premiumisation and productivity savings. These benefits more than
offset cost inflation.
|
● Marketing
investment grew 3%, focused on key spirits
brands.
|
Markets and categories:
|
|
|
|
|
Global giants and local stars(5):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organic
volume
movement(6)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Europe(4)
|
-
|
(1)
|
10
|
13
|
|
Guinness
|
6
|
19
|
19
|
|
|
|
|
|
|
Johnnie Walker
|
12
|
23
|
26
|
Great
Britain(4)
|
(9)
|
(8)
|
1
|
1
|
|
Baileys
|
1
|
3
|
4
|
Northern Europe
|
8
|
8
|
10
|
11
|
|
Smirnoff
|
2
|
16
|
18
|
Southern
Europe(4)
|
7
|
2
|
14
|
13
|
|
Captain Morgan
|
(3)
|
4
|
6
|
Ireland(4)
|
5
|
6
|
20
|
21
|
|
Tanqueray
|
(1)
|
3
|
4
|
Eastern
Europe(4)
|
(18)
|
(17)
|
(3)
|
6
|
|
Yenì Raki
|
(4)
|
6
|
36
|
Turkey
|
4
|
4
|
31
|
48
|
|
J&B
|
(4)
|
1
|
3
|
|
|
|
|
|
|
|
|
|
|
Spirits
|
(1)
|
(1)
|
9
|
13
|
|
|
|
|
|
Beer
|
5
|
5
|
18
|
19
|
|
|
|
|
|
Ready to drink
|
3
|
3
|
11
|
14
|
|
|
|
|
|
Europe contributed
|
|
Europe organic net sales grew
|
21% of Diageo reported net sales in
first half of fiscal 23
|
|
10% in first half of fiscal
23
|
● Reported
net sales grew 20%, primarily reflecting strong organic growth and
a favourable impact from foreign exchange.
|
● Organic
net sales grew 17%, with strong growth in most markets, notably
South East Asia, Travel Retail Asia and Middle East and
India.
|
● Spirits grew 20%, primarily driven by
double-digit growth in scotch and IMFL whisky(1).
|
● Organic
operating margin expanded by 258bps as the benefits from the
continued recovery of Travel Retail, price increases, and marketing
and operational efficiencies more than offset cost
inflation.
|
● Marketing investment grew 9%, with focused
investment in scotch in South East Asia, Greater China and
India.
|
Key financials (£ million):
|
||||||
|
F22 H1
|
Exchange
|
Acquisitions
and
disposals
|
Organic
movement
|
F23 H1
|
Reported
movement
%
|
Net sales
|
1,531
|
89
|
(33)
|
250
|
1,837
|
20
|
Marketing
|
263
|
15
|
-
|
24
|
302
|
15
|
Operating profit before exceptional items
|
451
|
26
|
(9)
|
119
|
587
|
30
|
Exceptional
operating items(2)
|
-
|
|
|
|
(21)
|
|
Operating profit
|
451
|
|
|
|
566
|
25
|
Markets and categories:
|
|
|
|
|
Global giants, local stars and reserve(4):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organic
volume
movement(5)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Asia
Pacific(3)
|
10
|
(4)
|
17
|
20
|
|
Johnnie Walker
|
27
|
42
|
46
|
|
|
|
|
|
|
Shui
Jing Fang(6)
|
(5)
|
(7)
|
-
|
India(3)
|
7
|
(9)
|
11
|
10
|
|
McDowell's
|
-
|
2
|
9
|
Greater China
|
2
|
2
|
2
|
9
|
|
The Singleton
|
40
|
37
|
46
|
Australia
|
(5)
|
(5)
|
3
|
9
|
|
Guinness
|
13
|
22
|
27
|
South East Asia
|
44
|
44
|
51
|
56
|
|
Smirnoff
|
18
|
21
|
30
|
North Asia
|
31
|
31
|
29
|
26
|
|
Windsor
|
56
|
55
|
56
|
Travel Retail Asia and Middle East
|
88
|
88
|
126
|
124
|
|
Baileys
|
7
|
13
|
25
|
|
|
|
|
|
|
|
|
|
|
Spirits(3)
|
9
|
(5)
|
20
|
22
|
|
|
|
|
|
Beer
|
15
|
15
|
21
|
27
|
|
|
|
|
|
Ready to drink
|
(1)
|
(1)
|
5
|
10
|
|
|
|
|
|
Asia Pacific contributed
|
|
Asia Pacific organic net sales grew
|
20% of Diageo reported net sales in
first half of fiscal 23
|
|
17% in first half of fiscal
23
|
● Reported
net sales grew 34%, primarily reflecting strong organic growth. Net
sales were favourably impacted by foreign exchange, mainly due to a
strengthening of the Mexican peso and Brazilian
real.
|
● Organic
net sales grew 20%, with 6% volume growth. Strong double-digit
growth, particularly in Brazil, Central America and Caribbean (CCA)
and Mexico, primarily driven by price increases and
premiumisation.
|
● Spirits
net sales grew 22%, primarily driven by strong double-digit growth
in scotch, tequila and vodka.
|
● Organic
operating margin expanded by 1bp. Prices increases, premiumisation
and leverage on operating costs offset increases in marketing
investment, cost inflation and negative market
mix.
|
● Marketing
investment grew 29%, ahead of organic net sales growth with
investment in key markets and brands.
|
Key financials (£ million):
|
||||||
|
F22 H1
|
Exchange
|
Acquisitions
and
disposals
|
Organic movement
|
F23 H1
|
Reported movement
%
|
Net sales
|
819
|
111
|
3
|
167
|
1,100
|
34
|
Marketing
|
125
|
14
|
1
|
37
|
177
|
42
|
Operating profit
|
333
|
69
|
-
|
69
|
471
|
41
|
Markets and categories:
|
|
|
|
|
Global giants, local stars and reserve(3):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organic
volume
movement(4)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Latin
America and Caribbean(1)
|
|
|
|
|
|
Johnnie Walker
|
12
|
24
|
37
|
6
|
7
|
20
|
34
|
|
Buchanan's
|
4
|
16
|
25
|
|
|
|
|
|
|
|
Don Julio
|
31
|
58
|
86
|
Brazil(1)(2)
|
13
|
17
|
33
|
68
|
|
Old Parr
|
25
|
39
|
50
|
Mexico(1)
|
(4)
|
(3)
|
16
|
40
|
|
Smirnoff
|
17
|
19
|
34
|
CCA
|
7
|
7
|
22
|
31
|
|
Black & White
|
7
|
30
|
48
|
South
LAC(1)(2)
|
8
|
-
|
15
|
6
|
|
Baileys
|
(17)
|
(6)
|
4
|
Andean(1)
|
(12)
|
(11)
|
8
|
6
|
|
Tanqueray
|
(6)
|
(3)
|
10
|
|
|
|
|
|
|
|
|
|
|
Spirits(1)
|
6
|
7
|
22
|
36
|
|
|
|
|
|
Beer
|
1
|
1
|
14
|
24
|
|
|
|
|
|
Ready to drink
|
1
|
1
|
6
|
20
|
|
|
|
|
|
Latin America and Caribbean contributed
|
|
Latin America and Caribbean organic net sales grew
|
12% of Diageo reported net sales in
first half of fiscal 23
|
|
20% in first half of fiscal
23
|
● Reported
net sales grew 9%, primarily driven by organic growth and a
favourable impact from foreign exchange.
|
● Organic
net sales grew 6%, with growth across all markets supported by
price increases, partially offset by an organic volume
decline.
|
● Spirits
net sales grew 15%, driven by double-digit growth in both
mainstream and international spirits, particularly
scotch.
|
● Beer
net sales grew 2%, primarily driven by Guinness and Malta Guinness
which grew 7% and 5% respectively. This growth was offset by a slow
down in Kenya following price and duty
increases.
|
● Organic
operating margin expanded by 126bps, primarily driven by price
increases, productivity savings, positive mix and lapping one-off
costs, partially offset by cost inflation and increased marketing
investment.
|
● Marketing
investment grew 8%, to support premiumisation, key categories and
route to consumer opportunities.
|
Markets and categories:
|
|
|
|
|
Global giants and local stars(2):
|
||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
|
Organic
volume
movement(3)
|
Organic
net sales
movement
|
Reported
net sales
movement
|
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
Africa(1)
|
(5)
|
(6)
|
6
|
9
|
|
Guinness
|
(5)
|
7
|
10
|
|
|
|
|
|
|
Johnnie Walker
|
22
|
22
|
23
|
East Africa
|
(4)
|
(4)
|
2
|
10
|
|
Smirnoff
|
(19)
|
7
|
10
|
Africa
Regional Markets(1)
|
(1)
|
(6)
|
8
|
(5)
|
|
|
|
|
|
Nigeria
|
(6)
|
(6)
|
8
|
19
|
|
Other beer:
|
|||
South Africa
|
(16)
|
(16)
|
10
|
12
|
|
|
|
|
|
|
|
|
|
|
|
Malta
Guinness
|
(15)
|
5
|
(5)
|
Spirits(1)
|
-
|
1
|
15
|
19
|
|
Senator
|
(15)
|
(4)
|
2
|
Beer(1)
|
(11)
|
(13)
|
2
|
3
|
|
Tusker
|
2
|
6
|
14
|
Ready to drink
|
(6)
|
(6)
|
3
|
9
|
|
Serengeti
|
7
|
9
|
26
|
Africa contributed
|
|
Africa organic net sales grew
|
10% of Diageo reported net sales in
first half of fiscal 23
|
|
6% in first half of fiscal
23
|
● Spirits
net sales grew 10%, with 3% volume growth. Growth was across most
categories, including double-digit performance in scotch, tequila
and IMFL whisky.
|
● Scotch
net sales grew 19%, with 7% volume growth. Growth was led by
Johnnie Walker, with strong growth of 21% and single malts also
grew strongly at 28%.
|
● Tequila
net sales grew 28%, with 15% volume growth, with Don Julio and
Casamigos growing strongly in North
America.
|
● Vodka net sales declined 2% overall, with flat
volume. A decline in North America was partially offset by growth
across all other regions, including double-digit growth in Europe,
Latin America and Caribbean and Asia Pacific.
|
● Rum
net sales grew 5%, driven by Captain Morgan growth across all
regions.
|
● Beer net sales grew 9%, with growth in all
regions and double-digit growth of Guinness in Ireland, Great
Britain and North America.
|
● Ready
to drink net sales grew 8%, with growth in all regions, including
double-digit growth in North America and
Europe.
|
|
Organic
volume
movement(1)
%
|
Organic
net sales
movement
%
|
Reported
net sales
movement
%
|
Spirits(2)
|
3
|
10
|
20
|
Scotch
|
7
|
19
|
27
|
Tequila
|
15
|
28
|
48
|
Vodka(3)(4)
|
-
|
(2)
|
8
|
Canadian whisky
|
(6)
|
(8)
|
6
|
Rum(3)
|
(1)
|
5
|
13
|
Liqueurs
|
(3)
|
(1)
|
5
|
Gin(3)
|
-
|
3
|
9
|
IFML whisky
|
7
|
13
|
8
|
Chinese white spirits
|
(5)
|
(7)
|
-
|
US whiskey
|
1
|
12
|
29
|
Beer
|
(6)
|
9
|
13
|
Ready to drink
|
-
|
8
|
16
|
Summary income statement
|
|
31 December 2021
|
Exchange
(a)
|
Acquisitions and disposals
(b)
|
Organic movement(1)
|
Fair value remeasurement
(d)
|
Hyperinflation(1)
|
31 December 2022
|
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
11,753
|
737
|
(214)
|
830
|
-
|
113
|
13,219
|
Excise duties
|
(3,796)
|
(68)
|
181
|
(88)
|
-
|
(28)
|
(3,799)
|
Net sales
|
7,957
|
669
|
(33)
|
742
|
-
|
85
|
9,420
|
Cost of sales
|
(2,955)
|
(273)
|
23
|
(341)
|
(3)
|
(49)
|
(3,598)
|
Gross profit
|
5,002
|
396
|
(10)
|
401
|
(3)
|
36
|
5,822
|
Marketing
|
(1,351)
|
(116)
|
(7)
|
(93)
|
(1)
|
(9)
|
(1,577)
|
Other operating items
|
(908)
|
(79)
|
(2)
|
(47)
|
(8)
|
(7)
|
(1,051)
|
Operating profit before exceptional items
|
2,743
|
201
|
(19)
|
261
|
(12)
|
20
|
3,194
|
Exceptional operating items (c)
|
-
|
|
|
|
|
|
(33)
|
Operating profit
|
2,743
|
|
|
|
|
|
3,161
|
Non-operating items (c)
|
(31)
|
|
|
|
|
|
16
|
Net finance charges
|
(180)
|
|
|
|
|
|
(292)
|
Share of after tax results of associates and joint
ventures
|
190
|
|
|
|
|
|
172
|
Profit before taxation
|
2,722
|
|
|
|
|
|
3,057
|
Taxation (e)
|
(634)
|
|
|
|
|
|
(650)
|
Profit for the period
|
2,088
|
|
|
|
|
|
2,407
|
|
Gains/(losses)
|
|
£ million
|
Translation impact
|
201
|
Transaction impact
|
-
|
Operating profit before exceptional items
|
201
|
Net
finance charges - translation impact
|
(13)
|
Net
finance charges - transaction impact
|
1
|
Net finance charges
|
(12)
|
Associates - translation impact
|
1
|
Profit before exceptional items and taxation
|
190
|
|
Six months ended 31 December 2022
|
Six months ended31
December 2021
|
Exchange rates
|
|
|
Translation
£1 =
|
$1.18
|
$1.36
|
Transaction
£1 =
|
$1.29
|
$1.30
|
Translation
£1 =
|
€1.16
|
€1.17
|
Transaction
£1 =
|
€1.15
|
€1.15
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Net borrowings at 30 June
|
(14,137)
|
(12,109)
|
Free cash flow (a)
|
817
|
1,575
|
Acquisitions (b)
|
(113)
|
(110)
|
Investment in associates (b)
|
(31)
|
(24)
|
Sale of businesses and brands (c)
|
99
|
2
|
Share buyback programme (d)
|
(554)
|
(538)
|
Net sale of own shares for share schemes (e)
|
9
|
42
|
Purchase of treasury shares in respect of subsidiaries
|
-
|
(13)
|
Dividend paid to non-controlling interests
|
(79)
|
(51)
|
Net movements in bonds (f)
|
1,534
|
(769)
|
Net movements in other borrowings (g)
|
(28)
|
38
|
Equity dividend paid
|
(1,065)
|
(1,040)
|
Net increase/(decrease) in cash and cash
equivalents
|
589
|
(888)
|
Net (increase)/decrease in
bonds and other borrowings
|
(1,508)
|
729
|
Exchange differences (h)
|
(50)
|
(31)
|
Other non-cash items (i)
|
(63)
|
(32)
|
Net borrowings at 31
December
|
(15,169)
|
(12,331)
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Equity at 30 June
|
9,514
|
8,431
|
Profit
for the period
|
2,407
|
2,088
|
Exchange adjustments (a)
|
(92)
|
29
|
Remeasurement of post employment benefit plans net of
taxation
|
(382)
|
453
|
Hyperinflation adjustments net of taxation (b)
|
86
|
-
|
Associates' transactions with non-controlling
interests
|
(12)
|
-
|
Dividend to non-controlling interests
|
(63)
|
(26)
|
Equity dividend paid
|
(1,066)
|
(1,040)
|
Share buyback programme (c)
|
(652)
|
(631)
|
Other reserve movements
|
126
|
27
|
Equity at 31 December
|
9,866
|
9,331
|
|
|
Six months ended 31 December 2022
|
Six months ended 31 December 2021
|
|
Notes
|
£ million
|
£ million
|
Sales
|
2
|
13,219
|
11,753
|
Excise duties
|
|
(3,799)
|
(3,796)
|
Net sales
|
2
|
9,420
|
7,957
|
Cost of sales
|
|
(3,624)
|
(2,955)
|
Gross profit
|
|
5,796
|
5,002
|
Marketing
|
|
(1,577)
|
(1,351)
|
Other operating items
|
|
(1,058)
|
(908)
|
Operating profit
|
2
|
3,161
|
2,743
|
Non-operating items
|
3
|
16
|
(31)
|
Finance income
|
4
|
257
|
130
|
Finance charges
|
4
|
(549)
|
(310)
|
Share of after tax results of associates and joint
ventures
|
|
172
|
190
|
Profit before taxation
|
|
3,057
|
2,722
|
Taxation
|
5
|
(650)
|
(634)
|
Profit for the period
|
|
2,407
|
2,088
|
|
|
|
|
Attributable to:
|
|
|
|
Equity shareholders of the parent company
|
|
2,295
|
1,965
|
Non-controlling interests
|
|
112
|
123
|
|
|
2,407
|
2,088
|
|
|
|
|
Weighted average number of shares
|
|
million
|
million
|
Shares in issue excluding own shares
|
|
2,274
|
2,331
|
Dilutive potential ordinary shares
|
|
7
|
8
|
|
|
2,281
|
2,339
|
|
|
|
|
|
|
pence
|
pence
|
Basic earnings per share
|
|
100.9
|
84.3
|
Diluted earnings per share
|
|
100.6
|
84.0
|
|
|
|
|
|
Six months ended
31 December 2022
|
Six months ended 31 December 2021
|
|
£ million
|
£ million
|
Other comprehensive income
|
|
|
Items that will not be recycled subsequently to the income
statement
|
|
|
Net remeasurement of post employment benefit plans
|
|
|
Group
|
(527)
|
585
|
Associates
and joint ventures
|
10
|
4
|
Tax on post employment benefit plans
|
135
|
(136)
|
Changes in the fair value of equity investments at fair value
through other comprehensive income
|
(3)
|
7
|
|
(385)
|
460
|
Items that may be recycled subsequently to the income
statement
|
|
|
Exchange differences on translation of foreign
operations
|
|
|
Group
|
(126)
|
74
|
Associates
and joint ventures
|
91
|
(45)
|
Non-controlling
interests
|
(39)
|
46
|
Net investment hedges
|
(18)
|
(46)
|
Tax on exchange differences - group
|
(2)
|
(5)
|
Effective portion of changes in fair value of cash flow
hedges
|
|
|
Hedge
of foreign currency debt of the group
|
60
|
66
|
Transaction
exposure hedging of the group
|
148
|
(87)
|
Commodity
price risk hedging of the group
|
(7)
|
12
|
Hedges
by associates and joint ventures
|
14
|
(10)
|
Recycled
to income statement - hedge of foreign currency debt of the
group
|
(29)
|
(53)
|
Recycled
to income statement - transaction exposure hedging of the
group
|
(64)
|
26
|
Recycled
to income statement - commodity price risk hedging of the
group
|
(35)
|
(18)
|
Tax on effective portion of changes in fair value of cash flow
hedges
|
(17)
|
12
|
Hyperinflation adjustments
|
108
|
(3)
|
Tax on hyperinflation adjustments
|
(22)
|
1
|
|
62
|
(30)
|
Other comprehensive (loss)/income, net of tax, for
the period
|
(323)
|
430
|
Profit for the period
|
2,407
|
2,088
|
Total comprehensive income for the period
|
2,084
|
2,518
|
|
|
|
Attributable to:
|
|
|
Equity shareholders of the parent company
|
2,011
|
2,349
|
Non-controlling interests
|
73
|
169
|
Total comprehensive income for the period
|
2,084
|
2,518
|
|
|
31 December 2022
|
30 June 2022
|
31 December 2021
|
|||
|
Notes
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Non-current assets
|
|
|
|
|
|
|
|
Intangible assets
|
|
12,130
|
|
11,902
|
|
10,921
|
|
Property, plant and equipment
|
|
5,972
|
|
5,848
|
|
5,091
|
|
Biological assets
|
|
119
|
|
94
|
|
75
|
|
Investments in associates and joint ventures
|
|
3,925
|
|
3,652
|
|
3,473
|
|
Other investments
|
|
42
|
|
37
|
|
50
|
|
Other receivables
|
|
28
|
|
37
|
|
28
|
|
Other financial assets
|
|
399
|
|
345
|
|
319
|
|
Deferred tax assets
|
|
106
|
|
114
|
|
83
|
|
Post employment benefit assets
|
|
1,060
|
|
1,553
|
|
1,544
|
|
|
|
|
23,781
|
|
23,582
|
|
21,584
|
Current assets
|
|
|
|
|
|
|
|
Inventories
|
6
|
7,552
|
|
7,094
|
|
6,235
|
|
Trade and other receivables
|
|
3,874
|
|
2,933
|
|
3,328
|
|
Assets held for sale
|
12
|
182
|
|
222
|
|
16
|
|
Corporate tax receivables
|
5
|
166
|
|
149
|
|
151
|
|
Other financial assets
|
|
398
|
|
251
|
|
66
|
|
Cash and cash equivalents
|
7
|
2,766
|
|
2,285
|
|
1,780
|
|
|
|
|
14,938
|
|
12,934
|
|
11,576
|
Total assets
|
|
|
38,719
|
|
36,516
|
|
33,160
|
Current liabilities
|
|
|
|
|
|
|
|
Borrowings and bank overdrafts
|
7
|
(2,305)
|
|
(1,522)
|
|
(1,184)
|
|
Other financial liabilities
|
|
(436)
|
|
(444)
|
|
(388)
|
|
Share buyback liability
|
|
(215)
|
|
(117)
|
|
(184)
|
|
Trade and other payables
|
|
(6,110)
|
|
(5,887)
|
|
(5,327)
|
|
Liabilities held for sale
|
12
|
(76)
|
|
(61)
|
|
(30)
|
|
Corporate tax payables
|
5
|
(266)
|
|
(252)
|
|
(380)
|
|
Provisions
|
|
(113)
|
|
(159)
|
|
(111)
|
|
|
|
|
(9,521)
|
|
(8,442)
|
|
(7,604)
|
Non-current liabilities
|
|
|
|
|
|
|
|
Borrowings
|
7
|
(15,304)
|
|
(14,498)
|
|
(12,693)
|
|
Other financial liabilities
|
|
(771)
|
|
(703)
|
|
(378)
|
|
Other payables
|
|
(353)
|
|
(380)
|
|
(278)
|
|
Provisions
|
|
(266)
|
|
(258)
|
|
(278)
|
|
Deferred tax liabilities
|
|
(2,257)
|
|
(2,319)
|
|
(2,112)
|
|
Post employment benefit liabilities
|
|
(381)
|
|
(402)
|
|
(486)
|
|
|
|
|
(19,332)
|
|
(18,560)
|
|
(16,225)
|
Total liabilities
|
|
|
(28,853)
|
|
(27,002)
|
|
(23,829)
|
Net assets
|
|
|
9,866
|
|
9,514
|
|
9,331
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
Share capital
|
|
719
|
|
723
|
|
737
|
|
Share premium
|
|
1,351
|
|
1,351
|
|
1,351
|
|
Other reserves
|
|
2,193
|
|
2,174
|
|
1,551
|
|
Retained earnings
|
|
3,876
|
|
3,550
|
|
4,019
|
|
Equity attributable to equity shareholders of the parent
company
|
|
|
8,139
|
|
7,798
|
|
7,658
|
Non-controlling interests
|
|
|
1,727
|
|
1,716
|
|
1,673
|
Total equity
|
|
|
9,866
|
|
9,514
|
|
9,331
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings/(deficit)
|
|
|
|
||
|
Share
capital
|
Share
premium
|
Other reserves
|
Own shares
|
Other retained earnings
|
Total
|
Equity attributable to parent company shareholders
|
Non-controlling interests
|
Total equity
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
|
At 30 June 2021
|
741
|
1,351
|
1,621
|
(1,877)
|
5,061
|
3,184
|
6,897
|
1,534
|
8,431
|
Profit
for the period
|
-
|
-
|
-
|
-
|
1,965
|
1,965
|
1,965
|
123
|
2,088
|
Other comprehensive (loss)/income
|
-
|
-
|
(74)
|
-
|
458
|
458
|
384
|
46
|
430
|
Total comprehensive (loss)/income for the period
|
-
|
-
|
(74)
|
-
|
2,423
|
2,423
|
2,349
|
169
|
2,518
|
Employee share schemes
|
-
|
-
|
-
|
30
|
36
|
66
|
66
|
-
|
66
|
Share-based incentive plans
|
-
|
-
|
-
|
-
|
30
|
30
|
30
|
-
|
30
|
Share-based incentive plans in respect of associates
|
-
|
-
|
-
|
-
|
2
|
2
|
2
|
-
|
2
|
Share-based payments and purchase of own shares in respect of
subsidiaries
|
-
|
-
|
-
|
-
|
(8)
|
(8)
|
(8)
|
(5)
|
(13)
|
Associates' transactions with non-controlling
interests
|
-
|
-
|
-
|
-
|
1
|
1
|
1
|
-
|
1
|
Unclaimed dividend
|
-
|
-
|
-
|
-
|
3
|
3
|
3
|
1
|
4
|
Change in fair value of put option
|
-
|
-
|
-
|
-
|
(11)
|
(11)
|
(11)
|
-
|
(11)
|
Share buyback programme
|
(4)
|
-
|
4
|
-
|
(631)
|
(631)
|
(631)
|
-
|
(631)
|
Dividend declared for the period
|
-
|
-
|
-
|
-
|
(1,040)
|
(1,040)
|
(1,040)
|
(26)
|
(1,066)
|
At 31 December 2021
|
737
|
1,351
|
1,551
|
(1,847)
|
5,866
|
4,019
|
7,658
|
1,673
|
9,331
|
|
|
|
|
|
|
|
|
|
|
At 30 June 2022
|
723
|
1,351
|
2,174
|
(1,838)
|
5,388
|
3,550
|
7,798
|
1,716
|
9,514
|
Profit
for the period
|
-
|
-
|
-
|
-
|
2,295
|
2,295
|
2,295
|
112
|
2,407
|
Other comprehensive income/(loss)
|
-
|
-
|
15
|
-
|
(299)
|
(299)
|
(284)
|
(39)
|
(323)
|
Total comprehensive income for the period
|
-
|
-
|
15
|
-
|
1,996
|
1,996
|
2,011
|
73
|
2,084
|
Employee share schemes
|
-
|
-
|
-
|
17
|
15
|
32
|
32
|
-
|
32
|
Share-based incentive plans
|
-
|
-
|
-
|
-
|
27
|
27
|
27
|
-
|
27
|
Share-based incentive plans in respect of associates
|
-
|
-
|
-
|
-
|
3
|
3
|
3
|
-
|
3
|
Share-based payments and purchase of own shares in respect of
subsidiaries
|
-
|
-
|
-
|
-
|
1
|
1
|
1
|
1
|
2
|
Associates' transactions with non-controlling
interests
|
-
|
-
|
-
|
-
|
(12)
|
(12)
|
(12)
|
-
|
(12)
|
Unclaimed dividend
|
-
|
-
|
-
|
-
|
1
|
1
|
1
|
-
|
1
|
Change in fair value of put option
|
-
|
-
|
-
|
-
|
(4)
|
(4)
|
(4)
|
-
|
(4)
|
Share buyback programme
|
(4)
|
-
|
4
|
-
|
(652)
|
(652)
|
(652)
|
-
|
(652)
|
Dividend declared for the period
|
-
|
-
|
-
|
-
|
(1,066)
|
(1,066)
|
(1,066)
|
(63)
|
(1,129)
|
At 31 December 2022
|
719
|
1,351
|
2,193
|
(1,821)
|
5,697
|
3,876
|
8,139
|
1,727
|
9,866
|
|
Six months ended 31 December
2022
|
Six
months ended 31 December
2021
|
||
|
£ million
|
£ million
|
£ million
|
£ million
|
Cash flows from operating activities
|
|
|
|
|
Profit for the period
|
2,407
|
|
2,088
|
|
Taxation
|
650
|
|
634
|
|
Share of after tax results of associates and joint
ventures
|
(172)
|
|
(190)
|
|
Net finance charges
|
292
|
|
180
|
|
Non-operating items
|
(16)
|
|
31
|
|
Operating profit
|
|
3,161
|
|
2,743
|
Increase in inventories
|
(468)
|
|
(187)
|
|
Increase in trade and other receivables
|
(1,008)
|
|
(976)
|
|
Increase in trade and other payables and provisions
|
111
|
|
653
|
|
Net increase in working capital
|
|
(1,365)
|
|
(510)
|
Depreciation, amortisation and impairment
|
281
|
|
224
|
|
Dividends received
|
5
|
|
1
|
|
Post employment payments less amounts included in operating
profit
|
(23)
|
|
(23)
|
|
Other items
|
7
|
|
34
|
|
|
|
270
|
|
236
|
Cash generated from operations
|
|
2,066
|
|
2,469
|
Interest received
|
66
|
|
41
|
|
Interest paid
|
(248)
|
|
(185)
|
|
Taxation paid
|
(636)
|
|
(378)
|
|
|
|
(818)
|
|
(522)
|
Net cash inflow from operating activities
|
|
1,248
|
|
1,947
|
Cash flows from investing activities
|
|
|
|
|
Disposal of property, plant and equipment and computer
software
|
6
|
|
7
|
|
Purchase of property, plant and equipment and computer
software
|
(435)
|
|
(382)
|
|
Movements in loans and other investments
|
(2)
|
|
3
|
|
Sale of businesses and brands
|
99
|
|
2
|
|
Acquisition
of subsidiaries(1)
|
(113)
|
|
(110)
|
|
Investment
in associates and joint ventures(1)
|
(31)
|
|
(24)
|
|
Net cash outflow from investing activities
|
|
(476)
|
|
(504)
|
Cash flows from financing activities
|
|
|
|
|
Share buyback programme
|
(554)
|
|
(538)
|
|
Net sale of own shares for share schemes
|
9
|
|
42
|
|
Purchase of treasury shares in respect of subsidiaries
|
-
|
|
(13)
|
|
Dividends paid to non-controlling interests
|
(79)
|
|
(51)
|
|
Proceeds from bonds
|
1,788
|
|
-
|
|
Repayment of bonds
|
(254)
|
|
(769)
|
|
Cash inflow from other borrowings
|
144
|
|
136
|
|
Cash outflow from other borrowings
|
(172)
|
|
(98)
|
|
Equity dividends paid
|
(1,065)
|
|
(1,040)
|
|
Net cash outflow from financing activities
|
|
(183)
|
|
(2,331)
|
|
|
|
|
|
Net increase/(decrease) in net cash and cash
equivalents
|
|
589
|
|
(888)
|
Exchange differences
|
|
(63)
|
|
14
|
Reclassification to assets held for sale
|
|
(47)
|
|
-
|
Net
cash and cash equivalents at beginning of the period
|
|
2,211
|
|
2,637
|
Net cash and cash equivalents at end of the period
|
|
2,690
|
|
1,763
|
|
|
|
|
|
Net cash and cash equivalents consist of:
|
|
|
|
|
Cash and cash equivalents
|
|
2,766
|
|
1,780
|
Bank overdrafts
|
|
(76)
|
|
(17)
|
|
|
2,690
|
|
1,763
|
|
North America
|
Europe
|
Asia
Pacific
|
Latin America
and Caribbean
|
Africa
|
SC&P
|
Eliminate
inter-segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
Six months ended 31 December 2022
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
3,847
|
3,427
|
3,170
|
1,394
|
1,337
|
1,330
|
(1,330)
|
13,175
|
44
|
13,219
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
3,092
|
1,815
|
1,724
|
995
|
916
|
1,318
|
(1,289)
|
8,571
|
44
|
8,615
|
Acquisitions and disposals
|
13
|
7
|
35
|
3
|
-
|
-
|
-
|
58
|
-
|
58
|
SC&P allocation
|
4
|
18
|
3
|
3
|
1
|
(29)
|
-
|
-
|
-
|
-
|
Retranslation to actual exchange rates
|
408
|
54
|
75
|
99
|
26
|
41
|
(41)
|
662
|
-
|
662
|
Hyperinflation
|
-
|
85
|
-
|
-
|
-
|
-
|
-
|
85
|
-
|
85
|
Net sales
|
3,517
|
1,979
|
1,837
|
1,100
|
943
|
1,330
|
(1,330)
|
9,376
|
44
|
9,420
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
1,260
|
630
|
557
|
407
|
212
|
39
|
-
|
3,105
|
(158)
|
2,947
|
Acquisitions and disposals
|
(6)
|
2
|
5
|
-
|
-
|
-
|
-
|
1
|
-
|
1
|
SC&P allocation
|
9
|
22
|
2
|
5
|
1
|
(39)
|
-
|
-
|
-
|
-
|
Fair value remeasurements
|
14
|
(1)
|
-
|
-
|
-
|
-
|
-
|
13
|
-
|
13
|
Retranslation to actual exchange rates
|
142
|
21
|
23
|
59
|
(33)
|
-
|
-
|
212
|
1
|
213
|
Hyperinflation
|
-
|
20
|
-
|
-
|
-
|
-
|
-
|
20
|
-
|
20
|
Operating profit/(loss) before exceptional items
|
1,419
|
694
|
587
|
471
|
180
|
-
|
-
|
3,351
|
(157)
|
3,194
|
Exceptional operating items
|
(26)
|
14
|
(21)
|
-
|
-
|
-
|
-
|
(33)
|
-
|
(33)
|
Operating profit/(loss)
|
1,393
|
708
|
566
|
471
|
180
|
-
|
-
|
3,318
|
(157)
|
3,161
|
Non-operating items
|
|
|
|
|
|
|
|
|
|
16
|
Net finance charges
|
|
|
|
|
|
|
|
|
|
(292)
|
Share of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
172
|
Profit before taxation
|
|
|
|
|
|
|
|
|
|
3,057
|
|
North America
|
Europe
|
Asia
Pacific
|
Latin America
and Caribbean
|
Africa
|
SC&P
|
Eliminate
inter-segment
sales
|
Total
operating
segments
|
Corporate
and other
|
Total
|
Six months ended 31 December 2021
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
£ million
|
Sales
|
3,257
|
3,178
|
2,999
|
1,052
|
1,244
|
972
|
(972)
|
11,730
|
23
|
11,753
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
2,959
|
1,782
|
1,544
|
822
|
888
|
1,027
|
(979)
|
8,043
|
23
|
8,066
|
Acquisitions and disposals
|
18
|
3
|
-
|
-
|
-
|
-
|
-
|
21
|
-
|
21
|
SC&P allocation
|
6
|
29
|
5
|
6
|
2
|
(48)
|
-
|
-
|
-
|
-
|
Retranslation to actual exchange rates
|
(19)
|
(62)
|
(18)
|
(9)
|
(22)
|
(7)
|
7
|
(130)
|
-
|
(130)
|
Net sales
|
2,964
|
1,752
|
1,531
|
819
|
868
|
972
|
(972)
|
7,934
|
23
|
7,957
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
At
budgeted exchange rates(1)
|
1,288
|
647
|
454
|
333
|
192
|
(8)
|
-
|
2,906
|
(132)
|
2,774
|
Acquisitions and disposals
|
(16)
|
(1)
|
-
|
-
|
-
|
-
|
-
|
(17)
|
-
|
(17)
|
SC&P allocation
|
10
|
(23)
|
(3)
|
9
|
(1)
|
8
|
-
|
-
|
-
|
-
|
Fair value remeasurements
|
5
|
21
|
-
|
-
|
-
|
-
|
-
|
26
|
-
|
26
|
Retranslation to actual exchange rates
|
8
|
(31)
|
-
|
(9)
|
(15)
|
-
|
-
|
(47)
|
7
|
(40)
|
Operating profit/(loss) before exceptional items
|
1,295
|
613
|
451
|
333
|
176
|
-
|
-
|
2,868
|
(125)
|
2,743
|
Exceptional items
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
Operating profit/(loss)
|
1,295
|
613
|
451
|
333
|
176
|
-
|
-
|
2,868
|
(125)
|
2,743
|
Non-operating items
|
|
|
|
|
|
|
|
|
|
(31)
|
Net finance charges
|
|
|
|
|
|
|
|
|
|
(180)
|
Share of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
190
|
Profit before taxation
|
|
|
|
|
|
|
|
|
|
2,722
|
|
Category analysis
|
Geographical analysis
|
||||||||
Six months ended 31 December 2022
|
Spirits
£ million
|
Beer
£ million
|
Ready to drink
£ million
|
Other
£ million
|
Total
£ million
|
United
States
£ million
|
India
£ million
|
Great
Britain
£ million
|
Rest of
world
£ million
|
Total
£ million
|
Sales(1)
|
10,925
|
1,702
|
478
|
114
|
13,219
|
3,617
|
1,599
|
1,163
|
6,840
|
13,219
|
Six months ended 31 December 2021
|
|
|
|
|
|
|
|
|
|
|
Sales(1)
|
9,680
|
1,520
|
418
|
135
|
11,753
|
3,072
|
1,704
|
1,204
|
5,773
|
11,753
|
|
Six months ended 31
December 2022
|
Six months ended 31
December 2021
|
|
£ million
|
£ million
|
Exceptional operating items
|
|
|
Supply chain agility programme
|
(47)
|
-
|
Winding down Russian operations
|
14
|
-
|
|
(33)
|
-
|
Non-operating items
|
|
|
Sale of businesses and brands
|
|
|
Archers
brand
|
20
|
-
|
USL
Popular brands
|
4
|
-
|
United
National Breweries
|
2
|
2
|
Guinness
Cameroon S.A.
|
(2)
|
-
|
Meta
Abo Brewery
|
-
|
(33)
|
Step acquisition - Mr Black
|
(8)
|
-
|
|
16
|
(31)
|
|
|
|
Exceptional items before taxation
|
(17)
|
(31)
|
|
|
|
Items included in taxation
|
|
|
Tax on exceptional operating items
|
12
|
-
|
Tax on exceptional non-operating items
|
1
|
-
|
Exceptional taxation
|
57
|
-
|
|
70
|
-
|
|
|
|
Total exceptional items
|
53
|
(31)
|
|
|
|
Attributable to:
|
|
|
Equity shareholders of the parent company
|
52
|
(31)
|
Non-controlling interests
|
1
|
-
|
Total exceptional items
|
53
|
(31)
|
|
Six months ended 31 December 2022
|
Six months ended 31 December 2021
|
|
£ million
|
£ million
|
Interest income
|
86
|
61
|
Fair value gain on financial instruments
|
142
|
58
|
Total interest income
|
228
|
119
|
Interest charge on bank loans, bonds and overdrafts
|
(235)
|
(181)
|
Interest charge on leases
|
(8)
|
(5)
|
Fair value loss on financial instruments
|
(142)
|
(59)
|
Interest charge on other borrowings
|
(125)
|
(36)
|
Total interest charges
|
(510)
|
(281)
|
Net interest charges
|
(282)
|
(162)
|
|
|
|
Net finance income in respect of post employment plans in
surplus
|
29
|
10
|
Hyperinflation adjustment in respect of Venezuela (a)
|
-
|
1
|
Total other finance income
|
29
|
11
|
Net finance charge in respect of post employment plans in
deficit
|
(7)
|
(5)
|
Foreign exchange revaluation of monetary items in respect of
Lebanon (a)
|
-
|
(2)
|
Unwinding of discounts
|
(5)
|
(6)
|
Interest charge in respect of direct and indirect tax
|
(17)
|
(8)
|
Change in financial liability (Level 3)
|
-
|
(7)
|
Hyperinflation adjustment in respect of Turkey (a)
|
(6)
|
-
|
Guarantee
fees
|
(1)
|
-
|
Other finance charges
|
(3)
|
(1)
|
Total other finance charges
|
(39)
|
(29)
|
Net other finance charges
|
(10)
|
(18)
|
|
31 December 2022
|
30 June 2022
|
31 December 2021
|
|
£ million
|
£ million
|
£ million
|
Raw materials and consumables
|
598
|
489
|
401
|
Work in progress
|
166
|
86
|
68
|
Maturing inventories
|
5,477
|
5,229
|
4,801
|
Finished goods and goods for resale
|
1,311
|
1,290
|
965
|
|
7,552
|
7,094
|
6,235
|
|
Six months ended 31 December 2022
|
Six months ended
31 December 2021
|
|
£ million
|
£ million
|
Net increase/(decrease) in
cash and cash equivalents before exchange
|
589
|
(888)
|
Net (increase)/decrease in
bonds and other borrowings(1)
|
(1,508)
|
729
|
Net increase in net
borrowings from cash flows
|
(919)
|
(159)
|
Exchange differences on net borrowings
|
(50)
|
(31)
|
Other
non-cash items(2)
|
(63)
|
(32)
|
Net
borrowings at beginning of the period
|
(14,137)
|
(12,109)
|
Net borrowings at end of the period
|
(15,169)
|
(12,331)
|
|
31 December 2022
|
30 June 2022
|
31 December 2021
|
|
£ million
|
£ million
|
£ million
|
Derivative assets
|
682
|
480
|
381
|
Derivative liabilities
|
(552)
|
(456)
|
(237)
|
Valuation techniques based on observable market input (Level
2)
|
130
|
24
|
144
|
Financial assets - other
|
172
|
184
|
167
|
Financial liabilities - other
|
(575)
|
(587)
|
(483)
|
Valuation techniques based on unobservable market input (Level
3)
|
(403)
|
(403)
|
(316)
|
|
Zacapa
financial
liability
|
Contingent consideration recognised on acquisition of
businesses(1)
|
Zacapa
financial
liability
|
Contingent
consideration recognised on acquisition of businesses(1)
|
|
Six months ended
31 December 2022
|
Six months ended
31 December 2022
|
Six months ended
31 December 2021
|
Six months ended
31 December 2021
|
|
£ million
|
£ million
|
£ million
|
£ million
|
At the
beginning of the period
|
(216)
|
(371)
|
(149)
|
(429)
|
Net gains/(losses) included in the income statement
|
-
|
12
|
(7)
|
18
|
Net (losses)/gains included in exchange in other comprehensive
income
|
(2)
|
(2)
|
(4)
|
(9)
|
Net losses included in retained earnings
|
(4)
|
-
|
(12)
|
-
|
Acquisitions
|
-
|
(5)
|
-
|
-
|
Settlement of liabilities
|
5
|
8
|
3
|
106
|
At the end of the period
|
(217)
|
(358)
|
(169)
|
(314)
|
|
Six months ended
31 December 2022
|
Six
months ended
31
December 2021
|
|
£ million
|
£ million
|
Amounts recognised as distributions to equity
shareholders
|
|
|
Final dividend for the year ended 30 June 2022 of 46.82 pence per share (2021 - 44.59 pence)
|
1,066
|
1,040
|
|
Consideration
|
|
£ million
|
Acquisitions in the year
|
|
Subsidiaries
|
|
Cash
consideration paid
|
(96)
|
Cash
acquired
|
1
|
Investments
in associates
|
|
Cash
consideration paid
|
(3)
|
Prior year acquisitions
|
|
Subsidiaries
|
|
Contingent
consideration paid
|
(8)
|
Other
consideration
|
(10)
|
Investments
in associates
|
|
Capital
injection
|
(28)
|
Net cash outflow on acquisition of businesses
|
(144)
|
|
31 December 2022
|
30 June 2022
|
|
£ million
|
£ million
|
Intangible assets
|
-
|
165
|
Property, plant and equipment
|
103
|
12
|
Other investments
|
-
|
1
|
Inventories
|
19
|
21
|
Trade and other receivables
|
13
|
23
|
Cash
|
47
|
-
|
Assets held for sale
|
182
|
222
|
Trade and other payables
|
(61)
|
(18)
|
Corporation tax
|
(2)
|
(6)
|
Deferred tax
|
(5)
|
(35)
|
Provisions
|
(2)
|
-
|
Leases
|
(2)
|
(2)
|
Post employment benefit liabilities
|
(4)
|
-
|
Liabilities held for sale
|
(76)
|
(61)
|
Total
|
106
|
161
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Latin America
and Caribbean
£ million
|
Africa
£ million
|
Corporate
£ million
|
Total
£ million
|
Sales
|
|
|
|
|
|
|
|
Six months ended 31 December 2021 reported
|
3,257
|
3,178
|
2,999
|
1,052
|
1,244
|
23
|
11,753
|
Exchange
|
48
|
(221)
|
33
|
17
|
6
|
-
|
(117)
|
Disposals(2)
|
-
|
(20)
|
(440)
|
-
|
(9)
|
-
|
(469)
|
Six months ended 31 December 2021 adjusted
|
3,305
|
2,937
|
2,592
|
1,069
|
1,241
|
23
|
11,167
|
Organic movement
|
80
|
269
|
213
|
189
|
58
|
21
|
830
|
Acquisitions and disposals(2)
|
14
|
10
|
225
|
6
|
-
|
-
|
255
|
Exchange
|
448
|
98
|
140
|
130
|
38
|
-
|
854
|
Hyperinflation
|
-
|
113
|
-
|
-
|
-
|
-
|
113
|
Six months ended 31 December 2022 reported
|
3,847
|
3,427
|
3,170
|
1,394
|
1,337
|
44
|
13,219
|
Organic movement %
|
2
|
9
|
8
|
18
|
5
|
91
|
7
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Latin America
and Caribbean
£ million
|
Africa
£ million
|
Corporate
£ million
|
Total
£ million
|
Net sales
|
|
|
|
|
|
|
|
Six months ended 31 December 2018 reported
|
2,356
|
1,633
|
1,398
|
672
|
821
|
28
|
6,908
|
Exchange
|
(20)
|
(20)
|
3
|
2
|
(4)
|
-
|
(39)
|
Disposals
|
(62)
|
(1)
|
(1)
|
(1)
|
(29)
|
-
|
(94)
|
Six months ended 31 December 2018 adjusted
|
2,274
|
1,612
|
1,400
|
673
|
788
|
28
|
6,775
|
Organic movement (2019)
|
129
|
42
|
62
|
14
|
40
|
(1)
|
286
|
Organic movement (2020)
|
307
|
(163)
|
(48)
|
(9)
|
(3)
|
(16)
|
68
|
Organic movement (2021)
|
338
|
389
|
181
|
258
|
166
|
12
|
1,344
|
Six months ended 31 December 2019, six months ended 31 December
2020 and six months ended 31 December 2021 movement on a constant
basis
|
774
|
268
|
195
|
263
|
203
|
(5)
|
1,698
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
Six months ended 31 December 2021 reported
|
2,964
|
1,752
|
1,531
|
819
|
868
|
23
|
7,957
|
Exchange(1)
|
44
|
(67)
|
14
|
12
|
4
|
-
|
7
|
Disposals(2)
|
-
|
(16)
|
(68)
|
-
|
(7)
|
-
|
(91)
|
Six months ended 31 December 2021 adjusted
|
3,008
|
1,669
|
1,477
|
831
|
865
|
23
|
7,873
|
Organic movement
|
88
|
164
|
250
|
167
|
52
|
21
|
742
|
Acquisitions and disposals(2)
|
13
|
7
|
35
|
3
|
-
|
-
|
58
|
Exchange(1)
|
408
|
54
|
75
|
99
|
26
|
-
|
662
|
Hyperinflation
|
-
|
85
|
-
|
-
|
-
|
-
|
85
|
Six months ended 31 December 2022 reported
|
3,517
|
1,979
|
1,837
|
1,100
|
943
|
44
|
9,420
|
Organic movement %
|
3
|
10
|
17
|
20
|
6
|
91
|
9
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2018 to six months ended 31 December
2022 reported growth %
|
49
|
21
|
31
|
64
|
15
|
57
|
36
|
Six months ended 31 December 2018 to six months ended 31 December
2022 growth on a constant basis %
|
38
|
27
|
32
|
64
|
32
|
57
|
36
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Latin America
and Caribbean
£ million
|
Africa
£ million
|
Corporate
£ million
|
Total
£ million
|
Marketing
|
|
|
|
|
|
|
|
Six months ended 31 December 2021 reported
|
548
|
307
|
263
|
125
|
102
|
6
|
1,351
|
Exchange
|
6
|
(2)
|
3
|
1
|
-
|
-
|
8
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
1
|
-
|
-
|
-
|
-
|
-
|
1
|
Disposals(2)
|
-
|
-
|
-
|
-
|
(1)
|
-
|
(1)
|
Six months ended 31 December 2021 adjusted
|
555
|
305
|
266
|
126
|
101
|
6
|
1,359
|
Organic movement
|
13
|
9
|
24
|
37
|
8
|
2
|
93
|
Acquisitions and disposals(2)
|
7
|
-
|
-
|
1
|
-
|
-
|
8
|
Exchange
|
74
|
5
|
12
|
13
|
3
|
1
|
108
|
Hyperinflation
|
-
|
9
|
-
|
-
|
-
|
-
|
9
|
Six months ended 31 December 2022 reported
|
649
|
328
|
302
|
177
|
112
|
9
|
1,577
|
Organic movement %
|
2
|
3
|
9
|
29
|
8
|
33
|
7
|
|
North America
£ million
|
Europe
£ million
|
Asia
Pacific
£ million
|
Latin America
and Caribbean
£ million
|
Africa
£ million
|
Corporate
£ million
|
Total
£ million
|
Operating profit before exceptional items
|
|
|
|
|
|
|
|
Six months ended 31 December 2018 reported
|
|
|
|
|
|
|
2,451
|
Exchange
|
|
|
|
|
|
|
(19)
|
Disposal
|
|
|
|
|
|
|
(44)
|
Six months ended 31 December 2018 adjusted
|
|
|
|
|
|
|
2,388
|
Organic movement (2019)
|
|
|
|
|
|
|
110
|
Organic movement (2020)
|
|
|
|
|
|
|
(85)
|
Organic movement (2021)
|
|
|
|
|
|
|
550
|
Six months ended 31 December 2019, six months ended 31 December
2020 and six months ended 31 December 2021 movement on a constant
basis
|
|
|
|
|
|
|
575
|
|
|
|
|
|
|
|
|
Operating profit before exceptional items
|
|
|
|
|
|
|
|
Six months ended 31 December 2021 reported
|
1,295
|
613
|
451
|
333
|
176
|
(125)
|
2,743
|
Exchange(1)
|
4
|
(36)
|
3
|
10
|
10
|
(3)
|
(12)
|
Fair value remeasurement of contingent considerations and equity
option
|
(4)
|
(21)
|
-
|
-
|
-
|
-
|
(25)
|
Acquisitions
and disposals(2)
|
-
|
(10)
|
-14
|
-
|
4
|
-
|
(20)
|
Six months ended 31 December 2021 adjusted
|
1,295
|
546
|
440
|
343
|
190
|
(128)
|
2,686
|
Organic movement
|
(26)
|
106
|
119
|
69
|
23
|
(30)
|
261
|
Acquisitions and disposals(2)
|
(6)
|
2
|
5
|
-
|
-
|
-
|
1
|
Fair value remeasurement of contingent considerations, equity
option and earn out arrangements
|
14
|
(1)
|
-
|
-
|
-
|
-
|
13
|
Exchange(1)
|
142
|
21
|
23
|
59
|
(33)
|
1
|
213
|
Hyperinflation
|
-
|
20
|
-
|
-
|
-
|
-
|
20
|
Six months ended 31 December 2022 reported
|
1,419
|
694
|
587
|
471
|
180
|
(157)
|
3,194
|
Organic movement %
|
(2)
|
19
|
27
|
20
|
12
|
(23)
|
10
|
|
|
|
|
|
|
|
|
Organic operating margin % (3)
|
|
|
|
|
|
|
|
Six months ended 31 December 2022
|
41.0
|
35.6
|
32.4
|
41.3
|
23.2
|
n/a
|
34.2
|
Six months ended 31 December 2021
|
43.1
|
32.7
|
29.8
|
41.3
|
22.0
|
n/a
|
34.1
|
Organic operating margin movement (bps)
|
(206)
|
286
|
258
|
1
|
126
|
n/a
|
9
|
|
|
|
|
|
|
|
|
Six months ended 31 December 2018 to six months ended 31 December
2022 reported growth %
|
|
|
|
|
|
|
30
|
Six months ended 31 December 2018 to six months ended 31 December
2022 growth on a constant basis %
|
|
|
|
|
|
|
35
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Profit attributable to equity shareholders of the parent
company
|
2,295
|
1,965
|
Exceptional operating and non-operating items
|
17
|
31
|
Exceptional tax items and tax in respect of exceptional operating
and non-operating items
|
(70)
|
-
|
Exceptional items attributable to non-controlling
interests
|
1
|
-
|
Profit attributable to equity shareholders of the parent company
before exceptional items
|
2,243
|
1,996
|
|
|
|
Weighted average number of shares
|
million
|
million
|
Shares in issue excluding own shares
|
2,274
|
2,331
|
Dilutive potential ordinary shares
|
7
|
8
|
Diluted shares in issue excluding own shares
|
2,281
|
2,339
|
|
|
|
|
pence
|
pence
|
Basic earnings per share before exceptional items
|
98.6
|
85.6
|
Diluted earnings per share before exceptional items
|
98.3
|
85.4
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Net cash inflow from operating activities
|
1,248
|
1,947
|
Disposal of property, plant and equipment and computer
software
|
6
|
7
|
Purchase of property, plant and equipment and computer
software
|
(435)
|
(382)
|
Movements in loans and other investments
|
(2)
|
3
|
Free cash flow
|
817
|
1,575
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Operating profit
|
3,161
|
2,743
|
Exceptional operating items
|
33
|
-
|
Profit before exceptional operating items attributable to
non-controlling interests
|
(111)
|
(123)
|
Share of after tax results of associates and joint
ventures
|
172
|
190
|
Tax at
the tax rate before exceptional items of 23.4% (2021 -
23.0%)
|
(788)
|
(675)
|
|
2,467
|
2,135
|
|
|
|
Average net assets (excluding net post employment benefit
assets/liabilities)
|
8,977
|
8,331
|
Average non-controlling interests
|
(1,722)
|
(1,604)
|
Average net borrowings
|
14,653
|
12,220
|
Average integration and restructuring costs (net of
tax)
|
1,639
|
1,639
|
Goodwill at 1 July 2004
|
1,562
|
1,562
|
Average invested capital
|
25,109
|
22,148
|
|
|
|
Return on average invested capital
|
19.7%
|
19.3%
|
|
2022
|
2021
|
|
£
million
|
£
million
|
Borrowings due within one year
|
2,305
|
1,184
|
Borrowings due after one year
|
15,304
|
12,693
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(112)
|
(126)
|
Lease liabilities
|
438
|
360
|
Less: Cash and cash equivalents
|
(2,766)
|
(1,780)
|
Net borrowings
|
15,169
|
12,331
|
Post employment benefit liabilities before tax
|
381
|
486
|
Adjusted net borrowings
|
15,550
|
12,817
|
|
|
|
Profit for the year
|
3,657
|
3,226
|
Taxation
|
1,065
|
1,004
|
Net finance charges
|
534
|
353
|
Depreciation, amortisation and impairment (excluding exceptional
intangible impairment)
|
506
|
452
|
Exceptional intangible impairment
|
336
|
-
|
EBITDA
|
6,098
|
5,035
|
Exceptional operating items (excluding impairment)
|
85
|
(2)
|
Non-operating items
|
(30)
|
22
|
Adjusted EBITDA
|
6,153
|
5,055
|
Adjusted net borrowings to adjusted EBITDA
|
2.5
|
2.5
|
|
2022
|
2021
|
|
£ million
|
£ million
|
Tax before exceptional items (a)
|
720
|
634
|
Tax in respect of exceptional items
|
(13)
|
-
|
Exceptional tax credit
|
(57)
|
-
|
Taxation on profit (b)
|
650
|
634
|
|
|
|
Profit before taxation and exceptional items (c)
|
3,074
|
2,753
|
Non-operating items
|
16
|
(31)
|
Exceptional operating items
|
(33)
|
-
|
Profit before taxation (d)
|
3,057
|
2,722
|
|
|
|
Tax rate before exceptional items (a/c)
|
23.4%
|
23.0%
|
Tax rate after exceptional items (b/d)
|
21.3%
|
23.3%
|
From the UK:
|
+44 (0) 20 3936 2999
|
From the UK (free call):
|
0800 640 6441
|
From the USA:
|
+1 646 664 1960
|
From the USA (free call):
|
+1 855 9796 654
|
Investor enquiries to:
|
Durga Doraisamy
|
+44 (0) 7902 126906
|
|
Andy Ryan
|
+44 (0) 7803 854842
|
|
|
investor.relations@diageo.com
|
|
|
|
Media enquiries to:
|
Dominic Redfearn
|
+44 (0) 7971 977759
|
|
Rebecca Perry
|
+44 (0) 7590 809101
|
|
Isabel Batchelor
|
+44 (0) 7731 988857
|
|
|
press@diageo.com
|
|
Diageo plc
|
|
(Registrant)
|
|
|
Date:
26 January 2023
|
|
|
|
|
By:___/s/
James Edmunds
|
|
|
|
James Edmunds
|
|
Deputy Company Secretary
|
1 Year Diageo Chart |
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