
Improved organic sales in the first half of the fiscal year, despite a challenging environment
- Reported net sales of
- Organic net sales returned to growth and increased
- Reported operating profit declined 4.9% and reported operating profit margin declined 132 bps, primarily due to unfavourable foreign exchange and a decline in organic operating margin.
- Organic operating profit declined by
- Diageo grew or held total market share in 65%(1) of total net sales value in measured markets, including in the US.
- EPS pre-exceptionals declined 9.6% to
- Net cash flow from operating activities increased by
- Medium-term guidance has been removed due to the current macroeconomic and geopolitical uncertainty in many of our key markets impacting the pace of recovery. We remain confident of favourable industry fundamentals and our ability to outperform. Instead in the interim, we will provide more regular near term guidance.
- Declared interim dividend of
- Leverage ratio of 3.1x (net debt to EBITDA) as at 31 December 2024.
Debra Crew, Chief Executive, said:
Our fiscal 25 first half results marked a return to growth, delivering organic net sales growth of 1% despite a challenging industry backdrop as consumers continue to navigate through inflationary pressures. Growth in four of our five regions was supported by market share gains. Notably, in
While the pace of recovery has been slower in several key markets, we remain confident of favourable long-term industry fundamentals and more importantly in our ability to outperform the market. Spirits remains an attractive sector with a long runway for growth, as we expect to continue to gain share within Total Beverage Alcohol (TBA). Additionally, our investments in digital capabilities, supply chain, and our transformational route-to-market changes will all be supportive in driving long term sustainable growth, and I am pleased that we are already seeing early benefits from changes in our US route-to-market transformation. Diageo has anticipated and planned for a number of potential scenarios regarding tariffs in recent months. The confirmation at the weekend of the implementation of tariffs in the US, whilst anticipated, could very well impact this building momentum. It also adds further complexity in our ability to provide updated forward guidance given this is a new and dynamic situation. We are taking a number of actions to mitigate the impact and disruption to our business that tariffs may cause, and we will also continue to engage with the US administration on the broader impact that this will have on everyone supporting the US hospitality industry, including consumers, employees, distributors, restaurants, bars and other retail outlets.
Finally, on behalf of the Board, and personally, I would like to thank Javier Ferrán for the enormous contribution he has made as Chair at Diageo. His dedication and stewardship have left the company in a strong position for high-quality future growth. I would also like to welcome Sir John Manzoni as his successor. I am certain that the experience he brings as new Chair will be invaluable.
Volume (equivalent units) |
|
Operating profit |
|
Earnings per share (eps) |
|
||||||
EU122.8m |
|
|
|
|
|
|
|
87.1c |
|
|
|
(F24 H1: EU124.6m) |
|
|
|
(F24 H1: |
|
|
|
(F24 H1: 98.6c) |
|
|
|
Reported movement |
(1)% |
i |
|
Reported movement |
(5)% |
i |
|
Reported movement |
(12)% |
i |
|
Organic movement(2) |
-% |
i |
|
Organic movement(2) |
(1)% |
i |
|
Eps before exceptional items(2) |
(10)% |
i |
|
Net sales |
|
Net cash from operating activities |
|
Interim dividend per share |
|||||||
|
|
|
|
|
|
|
|
40.50c |
|
|
|
(F24 H1: |
|
|
|
(F24 H1: |
|
|
|
(F24 H1: 40.50c) |
|
|
|
Reported movement |
(1)% |
i |
|
F25 H1 free cash flow(2) |
|
|
|
Flat |
-% |
|
|
Organic movement(2) |
1% |
h |
|
F24 H1 free cash flow(2) |
|
|
|
|
|
|
|
(1) Internal estimates incorporating Nielsen, Association of Canadian Distillers, Dichter & Neira, Frontline, INTAGE, IRI, ISCAM, NABCA, State Monopolies, TRAC, IPSOS and other third-party providers. All analysis of data has been applied with a tolerance of +/- 3 bps and the descriptions applied of gaining, holding or losing share by the Company or brands are based on estimated performance within that tolerance. Percentages represent percent of markets by total Diageo net sales contribution that have held or gained total trade share fiscal year to date. Measured markets indicate a market where we have purchased any market share data. Market share data may include beer, wine, spirits or other elements. Measured market net sales value sums to 89% of total Diageo net sales value for the six months ended 31 December 2024.
(2) See pages 45-51 for an explanation and reconciliation of non-GAAP measures.
See pages 45-51 for an explanation and reconciliation of non-GAAP measures, including organic net sales, organic marketing investment, organic operating profit, free cash flow, eps before exceptional items, adjusted net debt, adjusted EBITDA and tax rate before exceptional items. Unless otherwise stated, movements in results are for the six months ended 31 December 2024 compared to the six months ended 31 December 2023.
Dividend
An interim dividend of
To view the interim results document in full, please paste the following URL into the address bar of your browser:
http://www.rns-pdf.londonstockexchange.com/rns/7500V_1-2025-2-3.pdf
Pre-recorded audio webcast and presentation slides
At 07:05 (
Live Q&A conference call
Debra Crew and Nik Jhangiani will be hosting a Q&A conference call on Tuesday 4 February 2025 at 09:30-10:15 (
Please dial in 15 minutes ahead of the scheduled start time to register before the call begins.
From the |
+44 (0)20 3936 2999 |
From the |
0800 358 1035 |
From the |
+1 646 233 4753 |
From the |
+1 855 979 6654 |
Passcode: |
389803 |
Transcript and audio recording
Following the Q&A conference call, a transcript and audio recording will be available from the link below:
www.diageo.com/en/investors/results-reports-and-events/2025-interim-results
Key dates
Trading Update |
19 May 2025 |
|
|
|
Guinness Investor and Analyst Event |
19-20 May 2025 |
|
|
|
Preliminary Results for year ending 30 June 2025 |
5 August 2025 |
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Enquiries
Investors: |
Sonya Ghobrial |
+44 (0)7392 784784 |
|
Andy Ryan |
+44 (0)7803 854842 |
|
Brian Shipman |
+1 917 710 3007 |
|
|
investor.relations@diageo.com |
|
|
|
Media: |
Brendan O'Grady |
+44 (0)7812 183750 |
|
Rebecca Perry |
+44 (0)7590 809101 |
|
Clare Cavana |
+44 (0)7751 742072 |
|
Isabel Batchelor |
+44 (0)7731 988857 |
|
|
press@diageo.com |
Diageo plc LEI: 213800ZVIELEA55JMJ32
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