Preliminary results, year ended 30 June 2019
25 July 2019
|
Delivering our strategy through strong consistent
performance
|
●
|
Reported
net sales (£12.9 billion) increased 5.8% with organic growth partially
offset by acquisitions and
disposals. Reported operating profit (£4.0 billion) increased
9.5%, driven by organic growth
|
|
|
●
|
All
regions contributed to broad based organic net sales growth, up
6.1%, with organic volume up 2.3%
|
|
|
●
|
Organic operating profit grew 9.0%, ahead of top line
organic growth, driven by improved price/mix and
productivity benefits from everyday cost efficiencies, partially
offset by cost inflation and higher marketing
investment
|
|
|
●
|
Cash
flow continued to be strong, with net cash from operating
activities at £3.2 billion, up £164 million
and free cash flow at £2.6 billion, up £85
million
|
|
|
●
|
Basic eps of 130.7 pence increased by 7.4%.
Pre-exceptional eps grew 10.3% to 130.8
pence, driven by
higher operating profit and lower finance charges, which more than
offset an increased tax charge as
a result of higher profit
|
|
|
●
|
On 25 July the Board approved plans for a further return of
capital up to £4.5 billion to
shareholders for
the period F20 to F22.
|
|
|
●
|
The final dividend increased 5% bringing the full year dividend to
68.57 pence per share
|
Ivan Menezes, Chief Executive, commenting on the results
said:
|
|
|
2019
|
2018
|
Organic growth
%
|
Reported growth
%
|
||||
Volume
|
EUm
|
245.9
|
|
240.4
|
|
2
|
|
2
|
|
Net
sales
|
£
million
|
12,867
|
|
12,163
|
|
6
|
|
6
|
|
Marketing
|
£
million
|
2,042
|
|
1,882
|
|
8
|
|
9
|
|
Operating
profit before exceptional items
|
£
million
|
4,116
|
|
3,819
|
|
9
|
|
8
|
|
Exceptional
operating items(i)
|
£
million
|
(74
|
)
|
(128
|
)
|
|
|
||
Operating
profit
|
£
million
|
4,042
|
|
3,691
|
|
|
10
|
|
|
Share
of associate and joint venture profit after tax
|
£
million
|
312
|
|
309
|
|
|
1
|
|
|
Non-operating
exceptional gain(i)
|
£
million
|
144
|
|
-
|
|
|
|
||
Net
finance charges
|
£
million
|
(263
|
)
|
(260
|
)
|
|
|
||
Exceptional
taxation (charge)/credit(i)
|
£
million
|
(39
|
)
|
203
|
|
|
|
||
Tax
rate including exceptional items
|
%
|
21.2
|
|
15.9
|
|
|
33
|
|
|
Tax
rate before exceptional items
|
%
|
20.6
|
|
20.7
|
|
|
-
|
|
|
Profit
attributable to parent company's shareholders
|
£
million
|
3,160
|
|
3,022
|
|
|
5
|
|
|
Basic
earnings per share
|
pence
|
130.7
|
|
121.7
|
|
|
7
|
|
|
Earnings
per share before exceptional items
|
pence
|
130.8
|
|
118.6
|
|
|
10
|
|
|
Recommended full year dividend
|
pence
|
68.6
|
|
65.3
|
|
|
5
|
|
Net sales
|
£ million
|
|
2018
|
12,163
|
|
Exchange(i)
|
24
|
|
Acquisitions and disposals
|
(57)
|
|
Volume
|
280
|
|
Price/mix
|
457
|
|
2019
|
12,867
|
Operating profit
|
£ million
|
|
2018
|
3,691
|
|
Exceptional operating items
|
54
|
|
Exchange
|
25
|
|
Acquisitions and disposals
|
(64)
|
|
Organic movement
|
336
|
|
2019
|
4,042
|
Operating margin
|
ppt
|
|
2018
|
30.3
|
|
Exceptional operating items
|
0.47
|
|
Exchange
|
0.14
|
|
Acquisitions and disposals
|
(0.37)
|
|
Gross
margin
|
0.38
|
|
Marketing
|
(0.22)
|
|
Other operating expenses
|
0.67
|
|
2019
|
31.4
|
Basic earnings per share
|
pence
|
|
2018
|
121.7
|
|
Exceptional items after tax
|
(3.2)
|
|
Exchange on operating profit
|
1.0
|
|
Acquisitions and disposals
|
(2.0)
|
|
Organic
operating profit growth(i)
|
13.5
|
|
Associates and joint ventures
|
0.1
|
|
Net
finance charges(ii)
|
2.5
|
|
Tax
|
(3.3)
|
|
Share buyback
|
1.6
|
|
Non-controlling interests
|
(1.2)
|
|
2019
|
130.7
|
Free cash flow
|
£ million
|
|
2018
|
2,523
|
|
Exchange(ii)
|
25
|
|
Operating
profit(iii)
|
248
|
|
Working
capital(iv)
|
(63)
|
|
Capex
|
(95)
|
|
Tax
|
(54)
|
|
Interest
|
(1)
|
|
Other(v)
|
25
|
|
2019
|
2,608
|
Return on average invested capital (%)(i)
|
Return on average invested capital
|
ppt
|
2018
|
14.3
|
Exchange
|
0.17
|
Acquisitions and disposals
|
(0.31)
|
Organic operating profit growth
|
1.51
|
Associates and joint ventures
|
(0.09)
|
Tax
|
(0.15)
|
Other
|
(0.33)
|
2019
|
15.1
|
Reported growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North
America
|
2
|
|
1.2
|
|
8
|
|
344
|
|
15
|
|
100
|
|
4
|
|
66
|
|
Europe
and Turkey
|
(2
|
)
|
(0.9
|
)
|
-
|
|
7
|
|
3
|
|
16
|
|
(1
|
)
|
(14
|
)
|
Africa
|
1
|
|
0.4
|
|
7
|
|
106
|
|
10
|
|
16
|
|
44
|
|
84
|
|
Latin
America and Caribbean
|
1
|
|
0.2
|
|
6
|
|
61
|
|
3
|
|
5
|
|
19
|
|
57
|
|
Asia
Pacific
|
5
|
|
4.6
|
|
7
|
|
185
|
|
6
|
|
24
|
|
24
|
|
135
|
|
Corporate(ii)
|
-
|
|
-
|
|
2
|
|
1
|
|
(25
|
)
|
(1
|
)
|
(20
|
)
|
(31
|
)
|
Diageo
|
2
|
|
5.5
|
|
6
|
|
704
|
|
9
|
|
160
|
|
8
|
|
297
|
|
Organic growth by region
|
|
Volume
|
Net sales
|
Marketing
|
Operating profit(i)
|
||||||||||||
|
%
|
EUm
|
%
|
£
million
|
%
|
£
million
|
%
|
£
million
|
||||||||
North America
|
2
|
|
1.1
|
|
5
|
|
216
|
|
11
|
|
75
|
|
3
|
|
52
|
|
Europe and Turkey
|
(2
|
)
|
(0.9
|
)
|
4
|
|
104
|
|
6
|
|
26
|
|
2
|
|
22
|
|
Africa
|
1
|
|
0.4
|
|
7
|
|
100
|
|
3
|
|
5
|
|
50
|
|
91
|
|
Latin America and Caribbean
|
1
|
|
0.2
|
|
9
|
|
90
|
|
6
|
|
12
|
|
19
|
|
59
|
|
Asia Pacific
|
5
|
|
4.7
|
|
9
|
|
226
|
|
7
|
|
27
|
|
26
|
|
143
|
|
Corporate(ii)
|
-
|
|
-
|
|
2
|
|
1
|
|
(25
|
)
|
(1
|
)
|
(20
|
)
|
(31
|
)
|
Diageo
|
|
|
5.5
|
|
6
|
|
737
|
|
8
|
|
144
|
|
9
|
|
336
|
|
Notes to the business and financial review
|
Key financials £ million:
|
||||||||||||
|
2018
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2019
|
Reported movement
%
|
||||||
Net
sales
|
4,116
|
|
176
|
|
(48
|
)
|
216
|
|
4,460
|
|
8
|
|
Marketing
|
662
|
|
24
|
|
1
|
|
75
|
|
762
|
|
15
|
|
Operating
profit
|
1,882
|
|
74
|
|
(60
|
)
|
52
|
|
1,948
|
|
4
|
|
Markets:
|
|
|
|
|
|
Global
giants, local stars and reserve(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(iii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
North
America
|
2
|
|
2
|
|
5
|
|
8
|
|
|
Crown
Royal
|
6
|
|
6
|
|
10
|
|
|
|
|
|
|
|
Smirnoff
|
2
|
|
3
|
|
7
|
|
||||
US
Spirits(ii)
|
2
|
|
(2
|
)
|
5
|
|
8
|
|
|
Captain
Morgan
|
(3
|
)
|
(4
|
)
|
-
|
|
DBC
USA
|
8
|
|
8
|
|
10
|
|
15
|
|
|
Johnnie
Walker
|
1
|
|
5
|
|
9
|
|
Canada
|
3
|
|
3
|
|
5
|
|
4
|
|
|
Ketel
One(iv)
|
10
|
|
10
|
|
15
|
|
|
|
|
|
|
|
Cîroc
vodka
|
(10
|
)
|
(10
|
)
|
(6
|
)
|
||||
Spirits
|
2
|
|
2
|
|
5
|
|
8
|
|
|
Baileys
|
-
|
|
2
|
|
6
|
|
Beer
|
(4
|
)
|
(4
|
)
|
1
|
|
5
|
|
|
Guinness
|
(3
|
)
|
2
|
|
6
|
|
Ready to drink
|
18
|
|
17
|
|
18
|
|
21
|
|
|
Tanqueray
|
2
|
|
1
|
|
5
|
|
|
|
|
|
|
|
Don
Julio
|
20
|
|
26
|
|
32
|
|
||||
|
|
|
|
|
|
Bulleit
|
11
|
|
8
|
|
13
|
|
||||
|
|
|
|
|
|
Buchanan's
|
8
|
|
4
|
|
9
|
|
Europe and Turkey
|
|
Key financials £ million
|
||||||||||||
|
2018
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2019
|
Reported movement
%
|
||||||
Net sales
|
2,932
|
|
(95
|
)
|
(2
|
)
|
104
|
|
2,939
|
|
-
|
|
Marketing
|
474
|
|
(10
|
)
|
-
|
|
26
|
|
490
|
|
3
|
|
Operating profit before exceptional items
|
1,028
|
|
(35
|
)
|
(1
|
)
|
22
|
|
1,014
|
|
(1
|
)
|
Exceptional
operating items(i)
|
-
|
|
|
|
|
(18
|
)
|
|
||||
Operating profit
|
1,028
|
|
|
|
|
996
|
|
(3
|
)
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(ii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Europe
and Turkey
|
|
|
|
|
|
Guinness
|
1
|
|
1
|
|
1
|
|
||||
(2
|
)
|
(2
|
)
|
4
|
|
-
|
|
|
Johnnie
Walker
|
(2
|
)
|
3
|
|
1
|
|
|
|
|
|
|
|
|
Smirnoff
|
(4
|
)
|
(1
|
)
|
(1
|
)
|
||||
Europe
|
-
|
|
-
|
|
3
|
|
2
|
|
|
Baileys
|
(2
|
)
|
3
|
|
3
|
|
Turkey
|
(13
|
)
|
(13
|
)
|
11
|
|
(20
|
)
|
|
Yenì
Raki
|
(19
|
)
|
6
|
|
(24
|
)
|
|
|
|
|
|
|
Captain
Morgan
|
1
|
|
-
|
|
(2
|
)
|
||||
Spirits
|
(2
|
)
|
(2
|
)
|
3
|
|
(1
|
)
|
|
J&B
|
(8
|
)
|
(8
|
)
|
(10
|
)
|
Beer
|
1
|
|
1
|
|
1
|
|
-
|
|
|
Tanqueray
|
14
|
|
21
|
|
21
|
|
Ready
to drink
|
13
|
|
13
|
|
16
|
|
15
|
|
|
|
|
|
|
●
|
In Europe, net sales were up
3%:
|
|
●
|
In Great
Britain, net sales grew 4%,
with Diageo gaining share across beer and spirits. Gordon's and
Tanqueray both delivered strong double digit growth, both
benefitting from strong growth of their innovation variants. Ready
to drink grew 17% driven by the Gordon's premix range. Guinness net
sales grew 4%, driven by a strong performance for Guinness Draught and the continued growth of
Hop House 13 Lager. Across Baileys, Smirnoff and Captain Morgan
supply chain actions as well as commercial negotiations following
recent pricing decisions have resulted in net sales
decline.
|
|
●
|
Ireland grew net sales 3%. Beer net sales were flat.
Lager net sales grew 4% driven by strong growth in Rockshore.
Guinness net sales declined 2% impacted by difficult competitive
conditions. In spirits, net sales grew double digit largely driven
by Smirnoff, Baileys and
Gordon's.
|
|
●
|
In Continental
Europe, net sales were up
3%:
|
|
|
●
|
Iberia net sales grew 1%. Growth was driven by
strong performance in Baileys and gin with growth across both
Tanqueray and Gordon's. Scotch declined 3% as growth in Cardhu and
Johnnie Walker was offset by declines in J&B. In Spain, market
share in scotch was broadly flat, as the category continued to
decline.
|
|
|
●
|
In Central
Europe, net sales grew 4%
driven by the launch of Baileys Strawberries & Cream and double
digit growth in gin which more than offset the impact of pricing
actions in Germany.
|
|
|
●
|
In Northern
Europe net sales were up
9% driven by growth across both Benelux and the Nordics partially
driven by net revenue management
initiatives.
|
|
|
●
|
In the Mediterranean
Hub, net sales were down
by 6% driven by lapping strong comparable performance in Italy in
the prior year and a continuing tough economic environment in
Greece.
|
|
|
●
|
Europe Partner
Markets grew net sales 6%
driven by strong scotch performance and continued growth in
Guinness and gin.
|
|
●
|
Russia net sales declined 3% driven by a volatile
external environment and lapping strong comparables in the prior
year.
|
|
●
|
France net sales grew 1%. Double digit net sales
growth in Captain Morgan was partially offset by a decline in
J&B.
|
●
|
In Turkey, net sales grew 11% despite volume decline of
13%, reflecting the impact of price increases, which were taken in
response to increases in excise duties and inflation. Growth was
largely driven by Yenì Raki which grew net sales by 7%, wine
and scotch which grew double digit, led by strong growth in Johnnie
Walker.
|
●
|
Marketing investment increased 6%, ahead of net sales,
largely driven by increased investment in beer and gin. Beer
marketing investment growth was primarily driven by the Six Nations
rugby sponsorship agreement supporting the Guinness brand.
Up-weighted investment in gin was across both Gordon's and
Tanqueray.
|
Africa
|
|
Key financials £ million:
|
||||||||||||||
|
2018
|
FX
|
Reclassification(i)
|
Acquisitions
and
disposals
|
Organic
movement
|
2019
|
Reported movement
%
|
|||||||
Net
sales
|
1,491
|
|
8
|
|
-
|
|
(2
|
)
|
100
|
|
1,597
|
|
7
|
|
Marketing
|
158
|
|
1
|
|
10
|
|
-
|
|
5
|
|
174
|
|
10
|
|
Operating profit before exceptional items
|
191
|
|
(6
|
)
|
-
|
|
(1
|
)
|
91
|
|
275
|
|
44
|
|
Exceptional
operating items(ii)
|
(128
|
)
|
|
|
|
|
-
|
|
|
|||||
Operating profit
|
63
|
|
|
|
|
|
275
|
|
337
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(iii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Africa
|
1
|
|
1
|
|
7
|
|
7
|
|
|
Guinness
|
(1
|
)
|
2
|
|
3
|
|
|
|
|
|
|
|
Johnnie
Walker
|
4
|
|
10
|
|
9
|
|
||||
East
Africa
|
12
|
|
11
|
|
13
|
|
18
|
|
|
Smirnoff
|
-
|
|
12
|
|
9
|
|
Africa
Regional Markets(ii)
|
(3
|
)
|
3
|
|
8
|
|
9
|
|
|
|
|
|
|
|||
Nigeria
|
(10
|
)
|
(10
|
)
|
(7
|
)
|
(3
|
)
|
|
Other
beer:
|
||||||
South
Africa(ii)
|
(2
|
)
|
(10
|
)
|
6
|
|
(6
|
)
|
|
|
|
|
|
|||
|
|
|
|
|
|
Malta
Guinness
|
8
|
|
15
|
|
13
|
|
||||
Spirits
|
5
|
|
5
|
|
13
|
|
10
|
|
|
Tusker
|
(5
|
)
|
1
|
|
6
|
|
Beer
|
1
|
|
1
|
|
5
|
|
8
|
|
|
Senator
|
21
|
|
22
|
|
28
|
|
Ready
to drink
|
(3
|
)
|
(3
|
)
|
4
|
|
2
|
|
|
Serengeti
|
40
|
|
46
|
|
49
|
|
●
|
In East Africa, net sales grew by 13%. Kenya continued to grow
strongly driven by double digit growth in beer and mainstream
spirits as well as partially benefitting from lapping prior year
weakness in the first half as a result of the 2017 presidential
election. Tanzania continued to grow double digit. Beer net sales
grew 13% led by continued strong growth in Serengeti Lite in Tanzania and double digit
growth of Senator Keg in Kenya. Guinness net sales grew by
4%.
|
●
|
In Africa Regional
Markets, net sales increased by
8% with double digit growth in Ghana and Angola and a return to
growth in Cameroon as it lapped prior year challenges in the
distributor network. Beer grew 6% driven by strong performance in
Malta Guinness. Scotch also returned to growth driven by net
revenue management actions.
|
●
|
South Africa net sales returned to growth of 6% driven by
strong spirits performance in Tanqueray, double digit growth in
Smirnoff 1818 and Captain Morgan and the launch of "White Walker by
Johnnie Walker".
|
●
|
In Nigeria, net sales declined by 7% driven by Satzenbrau,
as a result of a tough economic and competitive environment
impacting the lager segment. Net sales grew in Malta Guinness,
Guinness and spirits.
|
●
|
Marketing investment increased by 3% largely driven by
up-weighted investment in Tusker marketing activities and media
campaigns, the relaunch of Guinness Foreign Extra Stout, an
evolution of Guinness's successful football campaign across Africa,
led by Guinness brand ambassador Rio Ferdinand, and the
continuation of Serengeti's sponsorship of the Tanzanian national
football team.
|
Latin America and Caribbean
|
|
Key financials £ million:
|
||||||||||||
|
2018
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2019
|
Reported movement
%
|
||||||
Net
sales
|
1,069
|
|
(29
|
)
|
-
|
|
90
|
|
1,130
|
|
6
|
|
Marketing
|
196
|
|
(7
|
)
|
-
|
|
12
|
|
201
|
|
3
|
|
Operating
profit
|
308
|
|
(2
|
)
|
-
|
|
59
|
|
365
|
|
19
|
|
Markets:
|
|
|
|
|
|
Global giants and local stars(i):
|
||||||||||
|
Organic
volume
movement
|
Reported
volume
movement
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|
|
Organic
volume
movement(ii)
|
Organic
net
sales
movement
|
Reported
net
sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Latin
America and Caribbean
|
|
|
|
|
|
Johnnie
Walker
|
3
|
|
5
|
|
3
|
|
||||
1
|
|
1
|
|
9
|
|
6
|
|
|
Buchanan's
|
5
|
|
8
|
|
7
|
|
|
|
|
|
|
|
|
Smirnoff
|
11
|
|
19
|
|
10
|
|
||||
PUB
|
(1
|
)
|
(1
|
)
|
6
|
|
(3
|
)
|
|
Old
Parr
|
5
|
|
3
|
|
1
|
|
Mexico
|
4
|
|
4
|
|
8
|
|
8
|
|
|
Baileys
|
3
|
|
17
|
|
13
|
|
CCA
|
5
|
|
5
|
|
13
|
|
14
|
|
|
Ypióca
|
(7
|
)
|
(1
|
)
|
(11
|
)
|
Andean
|
(16
|
)
|
(15
|
)
|
19
|
|
14
|
|
|
Black
& White
|
8
|
|
5
|
|
-
|
|
PEBAC
|
13
|
|
13
|
|
6
|
|
3
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Spirits
|
1
|
|
1
|
|
9
|
|
6
|
|
|
|
|
|
|
|||
Beer
|
2
|
|
2
|
|
(4
|
)
|
(7
|
)
|
|
|
|
|
|
|||
Ready
to drink
|
(4
|
)
|
(4
|
)
|
8
|
|
4
|
|
|
|
|
|
|
●
|
In PUB (Paraguay, Uruguay and Brazil), net sales
grew 6%. Brazil delivered 11% growth driven by strong growth in
gin, and partially benefitting from a one-off incentive related
credit. Tanqueray drove the growth in gin supported by scaled up
commercial activations in conjunction with media support. Scotch
net sales grew 6% led by White Horse. Black & White declined as
it was impacted by a state tax change in
Brazil.
|
●
|
In Mexico, net sales increased 8%. Growth was broad based
but led by Don Julio which continued to gain share in the tequila
category, reflecting strong brand momentum and well-executed
marketing campaigns and commercial platforms. Scotch grew 4% with
Johnnie Walker up 7% and Black & White up 4% supported by an
increased focus on brand availability through trade activations.
Baileys grew strong double digit driven by distribution expansion,
new brand communication focusing on Baileys' indulgent treat
positioning and the launch of new
flavours.
|
●
|
In CCA (Caribbean and Central America), net sales
increased 13% as it benefitted from lapping the impact of the
hurricanes in the prior year. Growth was broad based but led by
Johnnie Walker Black Label which grew double digit as it benefitted
from greater visibility with the "Keep Walking" campaign. Smirnoff
ready to drink grew 19% driven by innovations with Guarana and
Green Apple flavours.
|
●
|
Andean (Colombia and Venezuela) net sales increased
19% driven by Colombia, which partially benefitted from lapping the
impact of tax changes last year. Scotch delivered double digit net
sales growth. Buchanan's strong performance was supported by
occasion driven consumer activations with local media campaigns.
Black & White benefitted from route to consumer expansion and
recruiting new consumers from local spirits and beer. Johnnie
Walker grew double digit partially driven by the "White Walker by
Johnnie Walker" innovation. Venezuela volume remained in decline as
economic conditions continued to
deteriorate.
|
●
|
PEBAC (Peru, Ecuador, Bolivia, Argentina and
Chile) delivered 6% net sales growth, driven by Ecuador and Chile
partially offset by Bolivia and Peru, which were impacted by tax
changes. Growth was driven by scotch with a strong contribution
from Johnnie Walker Red Label and "White Walker by Johnnie
Walker".
|
●
|
Marketing investment increased 6% driven by the key
campaigns including Johnnie Walker "We are all Human", Buchanan's
"Vivamos Grandes Momentos", Old Parr "Cambia el Guión" and
Tanqueray "Tanqueray Mixed Gin
Bar".
|
Asia Pacific
|
Key financials £ million:
|
|||||||||||
|
2018
|
FX
|
Acquisitions
and
disposals
|
Organic
movement
|
2019
|
Reported movement
%
|
|||||
Net
sales
|
2,503
|
(36)
|
(5)
|
226
|
|
2,688
|
|
7
|
|
||
Marketing
|
388
|
(3)
|
-
|
27
|
|
412
|
|
6
|
|
||
Operating profit before exceptional items
|
568
|
(6)
|
(2)
|
143
|
|
703
|
|
24
|
|
||
Exceptional
operating items(i)
|
-
|
|
|
|
(35)
|
|
|||||
Operating profit
|
568
|
|
|
|
668
|
|
18
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
Markets:
|
|
|
|
|
|
Global
giants and local stars(i):
|
||||||||||
|
Organic
volume movement(i)
|
Reported volume
movement
|
Organic
net sales movement
|
Reported net sales
movement
|
|
|
Organic
volume movement(ii)
|
Organic
net sales movement
|
Reported net sales
movement
|
|||||||
|
%
|
%
|
%
|
%
|
|
|
%
|
%
|
%
|
|||||||
Asia
Pacific
|
5
|
|
5
|
|
9
|
|
7
|
|
|
Johnnie
Walker
|
6
|
|
11
|
|
13
|
|
|
|
|
|
|
|
McDowell's
|
7
|
|
9
|
|
5
|
|
||||
India
|
5
|
|
5
|
|
8
|
|
4
|
|
|
Windsor
|
(1
|
)
|
(16
|
)
|
(15
|
)
|
Greater
China
|
11
|
|
11
|
|
19
|
|
19
|
|
|
Smirnoff
|
(4
|
)
|
2
|
|
1
|
|
Australia
|
3
|
|
3
|
|
6
|
|
2
|
|
|
Guinness
|
1
|
|
5
|
|
(1
|
)
|
South
East Asia
|
2
|
|
2
|
|
8
|
|
9
|
|
|
Bundaberg
|
(4
|
)
|
(1
|
)
|
(5
|
)
|
North
Asia
|
12
|
|
11
|
|
(2
|
)
|
-
|
|
|
Shui
Jing Fang(iii)
|
16
|
|
23
|
|
22
|
|
Travel
Retail Asia and Middle East
|
4
|
|
9
|
|
13
|
|
15
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Spirits
|
5
|
|
5
|
|
10
|
|
8
|
|
|
|
|
|
|
|||
Beer
|
1
|
|
1
|
|
5
|
|
(2
|
)
|
|
|
|
|
|
|||
Ready
to drink
|
3
|
|
3
|
|
6
|
|
6
|
|
|
|
|
|
|
●
|
In India net sales increased 8% with growth from the
"Prestige and Above" segment up 12%, led by double digit growth in
scotch, driven by Johnnie Walker and Black & White. This was
supported by solid performance from McDowell's No.1 enhanced by the
launch of its new Platinum range and good growth in Royal Challenge
and Signature. Vodka net sales were up 5%, supported by Smirnoff
consumer activation. Net sales in the popular brands segment
increased 1%.
|
●
|
In Greater
China net sales increased
19%, with double digit growth in both Chinese white spirits and
scotch. Chinese white spirits grew 23% partly driven by route to
consumer expansion. Scotch net sales increased 13% with continued
growth in scotch malts and Johnnie Walker super deluxe in mainland
China and a return to growth from Johnnie Walker in
Taiwan.
|
●
|
Net sales in Australia grew 6%, driven by strong performance in the
ready to drink and gin portfolio. Ready to drink net sales
increased 7% fuelled by innovation geared towards more premium
products such as Gordon's Premium Pink Gin & Soda and Tanqueray
& Tonic. Gin grew double digit as the fastest growing spirit in
Australia supported by innovation from Gordon's Pink and House of
Tanqueray. Bundaberg net sales stabilised on the back of the
"Unmistakably Ours"
campaign.
|
●
|
In South East
Asia, net sales increased
8% driven by growth across all key countries except Thailand.
Scotch was the main growth driver with net sales growth of 6%, led
by "White Walker by Johnnie Walker" and Johnnie Walker super
deluxe. Guinness grew 11% driven by solid performance in Indonesia
supported by focus on modern on-trade recruitment and by route to
consumer expansion of Guinness Draught in
Singapore.
|
●
|
In North Asia, net sales declined 2% with growth in Japan
being offset by continued weakness in Korea. In Korea net sales
declined 9% due to a continued weak Windsor performance, as a
result of the contraction of the scotch category. Japan net sales
grew 10% driven by primary scotch, Johnnie Walker and the
successful relaunch of the Guinness Draught in
Can.
|
●
|
Travel Retail Asia and Middle
East net sales grew 13%
driven by successful launches within the Johnnie Walker portfolio,
including "White Walker by Johnnie Walker" and Johnnie Walker Blue
Label innovation.
|
●
|
Marketing investment increased 7% driven by increased
investment in Chinese white spirits, Johnnie Walker and scotch
malts in Greater China and a new culture leading campaign
"#ChallengeAccepted" for Royal Challenge in
India.
|
Key categories:
|
||||||
|
Organic volume movement(iii)
%
|
Organic
net sales
movement
%
|
Reported
net sales movement
%
|
|||
Spirits(i)
|
3
|
|
7
|
|
6
|
|
Scotch
|
2
|
|
6
|
|
6
|
|
Vodka(ii)(iv)
|
2
|
|
2
|
|
4
|
|
US
whiskey
|
2
|
|
4
|
|
9
|
|
Canadian
whisky
|
6
|
|
6
|
|
8
|
|
Rum(ii)
|
(3
|
)
|
(2
|
)
|
(3
|
)
|
Indian-Made Foreign
Liquor (IMFL) whisky
|
6
|
|
8
|
|
3
|
|
Liqueurs
|
1
|
|
4
|
|
4
|
|
Gin(ii)
|
17
|
|
22
|
|
23
|
|
Tequila
|
19
|
|
29
|
|
37
|
|
Beer
|
1
|
|
3
|
|
4
|
|
Ready to drink
|
7
|
|
12
|
|
12
|
|
●
|
Scotch represents 25% of Diageo's net sales and was
up 6% with broad based growth across all regions except Europe.
Scotch growth was driven by Johnnie Walker, which delivered a
strong performance with net sales up 7%, benefitting from the
successful launch of "White Walker by Johnnie Walker" inspired by
the TV series Game of Thrones. Primary scotch brands grew 9%
largely driven by Black & White in Asia Pacific and White Horse
in Latin America and Caribbean and Asia Pacific. Buchanan's grew 8%
in Latin America and Caribbean and 4% in North America. Scotch
malts were up 12% with growth coming from Asia Pacific, North
America and Europe benefitting from the launch of the "Game of
Thrones Single Malt Scotch Whisky Collection". Old Parr returned to
growth this year, as the brand lapped tax changes in Colombia.
J&B continued to be under pressure in Europe led by the
challenged scotch category in Iberia. Scotch continued to decline
in Korea driven by declines in
Windsor.
|
●
|
Vodka represents 11% of Diageo's net sales and
returned to growth with net sales up 2% and growth across all the
regions except Europe. Vodka growth was driven by Smirnoff and
Ketel One partially offset by a decline in Cîroc vodka.
Overall, Smirnoff grew 3%, with net sales up 2% in US Spirits and
4% outside of the US, where performance was largely driven by
double digit growth in Brazil and South Africa. Ketel One grew net
sales by 10%, with US Spirits being the largest contributor to
growth, benefitting from the success of Ketel One Botanical. The
decline in Cîroc vodka was driven by US
Spirits.
|
●
|
US whiskey represents 2% of Diageo's net sales and grew
4%. Performance continued to be driven by good growth in Bulleit in
US Spirits.
|
●
|
Canadian
whisky represents 7% of
Diageo's net sales and grew 6%. Solid growth of Crown Royal in US
Spirits was driven by strengthened marketing investment fuelling
the growth of Crown Royal Regal Apple and by the Crown Royal Peach
limited time offer. The brand also grew share within its
category.
|
●
|
Rum represents 6% of Diageo's net sales and
declined 2% largely driven by Captain Morgan decline in US Spirits,
in a category that is also in
decline.
|
●
|
IMFL whisky represents 5% of Diageo's net sales
and grew 8% driven by the strong performance of the McDowell's
trademark, Signature and Royal
Challenge.
|
●
|
Liqueurs represent 5% of Diageo's net sales and grew
4% with growth in all regions. Baileys was up 4% led by Europe, US
Spirits and Mexico, with performance driven by continued focus on
reminding consumers of Baileys' indulgent treat year-round
positioning.
|
●
|
Gin represents 4% of Diageo's net sales and grew
22% with double digit growth across all regions except North
America. Strong growth in gin continued with Tanqueray and Gordon's
growing double digit with both Gordon's and Tanqueray benefitting
from strong growth across their core and innovation variants. We
continued to gain share in the gin category in Western
Europe.
|
●
|
Tequila represents 4% of Diageo's net sales and grew
29%. The performance was driven by strong double digit growth of
Don Julio in US Spirits and Latin America and Caribbean as well as
Casamigos in US Spirits.
|
●
|
Beer represents 16% of Diageo's net sales and
grew 3%. In Africa beer grew 5%, largely driven by Senator Keg in
Kenya and Serengeti Lite in Tanzania partially offset by decline in
Satzenbrau in Nigeria. Guinness grew 2% with growth largely driven
by Guinness Foreign Extra Stout, as well as Guinness Draught and
the continued growth of Hop House 13 Lager in Europe. In Ireland
lager net sales grew 4% driven by strong growth in
Rockshore.
|
●
|
Ready to
drink represents 6% of
Diageo's net sales and grew 12% primarily driven by North America
and Europe.
|
Global giants, local stars and reserve(i):
|
||||||
|
Organic
volume movement(ii)
%
|
Organic
net sales
movement
%
|
Reported
net sales movement
%
|
|||
Global giants
|
|
|
|
|||
Johnnie
Walker
|
2
|
|
7
|
|
7
|
|
Smirnoff
|
-
|
|
3
|
|
5
|
|
Baileys
|
-
|
|
4
|
|
5
|
|
Captain
Morgan
|
(1
|
)
|
(2
|
)
|
1
|
|
Tanqueray
|
17
|
|
19
|
|
21
|
|
Guinness
|
-
|
|
2
|
|
2
|
|
Local stars
|
|
|
|
|||
Crown
Royal
|
6
|
|
6
|
|
10
|
|
Yenì
Raki
|
(19
|
)
|
6
|
|
(24
|
)
|
Buchanan's
|
6
|
|
6
|
|
8
|
|
J&B
|
(10
|
)
|
(8
|
)
|
(9
|
)
|
Windsor
|
(1
|
)
|
(16
|
)
|
(15
|
)
|
Old
Parr
|
4
|
|
3
|
|
1
|
|
Bundaberg
|
(4
|
)
|
(1
|
)
|
(5
|
)
|
Black
& White
|
10
|
|
14
|
|
9
|
|
Ypióca
|
(7
|
)
|
(1
|
)
|
(12
|
)
|
McDowell's
|
7
|
|
8
|
|
4
|
|
Shui
Jing Fang(iii)
|
16
|
|
22
|
|
22
|
|
Reserve
|
|
|
|
|||
Scotch
malts
|
7
|
|
12
|
|
12
|
|
Cîroc
vodka
|
(8
|
)
|
(8
|
)
|
(5
|
)
|
Ketel
One(iv)
|
9
|
|
10
|
|
15
|
|
Don
Julio
|
15
|
|
26
|
|
30
|
|
Bulleit
|
9
|
|
7
|
|
12
|
|
●
|
Global
giants represent 41% of
Diageo's net sales and grew 5%. Growth was broad based across all
brands with the exception of Captain Morgan. Captain Morgan was
down 2%, driven by a 5% decline in US Spirits in a category that is
also in decline.
|
●
|
Local stars represent 20% of Diageo's net sales and grew
6%, largely driven by strong growth of Chinese white spirits, Crown
Royal in US Spirits, McDowell's No. 1 in India, Buchanan's in Latin
America and Caribbean and Black & White in Asia Pacific. This
was partially offset by declines of Windsor in Korea and J&B in
Iberia.
|
●
|
Reserve
brands represent 19% of
Diageo's net sales and grew 11% largely driven by double digit
growth of Don Julio in US Spirits and Mexico, Chinese white spirits
and Casamigos in US Spirits partially offset by declines in
Cîroc. Net sales of Johnnie Walker reserve variants were up
7%.
|
SUMMARY INCOME STATEMENT
|
|
2018
|
Exchange(a)
|
Acquisitions
and disposals(b)
|
Organic
movement(i)
|
Reclassification(ii)
|
2019
|
||||||
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
£ million
|
||||||
Sales
|
18,432
|
|
(234
|
)
|
(61
|
)
|
1,157
|
|
-
|
|
19,294
|
|
Excise
duties
|
(6,269
|
)
|
258
|
|
4
|
|
(420
|
)
|
-
|
|
(6,427
|
)
|
Net
sales
|
12,163
|
|
24
|
|
(57
|
)
|
737
|
|
-
|
|
12,867
|
|
Cost of
sales
|
(4,634
|
)
|
(9
|
)
|
9
|
|
(232
|
)
|
-
|
|
(4,866
|
)
|
Gross
profit
|
7,529
|
|
15
|
|
(48
|
)
|
505
|
|
-
|
|
8,001
|
|
Marketing
|
(1,882
|
)
|
(5
|
)
|
(1
|
)
|
(144
|
)
|
(10
|
)
|
(2,042
|
)
|
Other
operating expenses
|
(1,828
|
)
|
15
|
|
(15
|
)
|
(25
|
)
|
10
|
|
(1,843
|
)
|
Operating
profit before exceptional items
|
3,819
|
|
25
|
|
(64
|
)
|
336
|
|
-
|
|
4,116
|
|
Exceptional
operating items (c)
|
(128
|
)
|
|
|
|
|
(74
|
)
|
||||
Operating
profit
|
3,691
|
|
|
|
|
|
4,042
|
|
||||
Non-operating
items (c)
|
-
|
|
|
|
|
|
144
|
|
||||
Net
finance charges
|
(260
|
)
|
|
|
|
|
(263
|
)
|
||||
Share
of after tax results of associates and joint ventures
|
309
|
|
|
|
|
|
312
|
|
||||
Profit
before taxation
|
3,740
|
|
|
|
|
|
4,235
|
|
||||
Taxation
(d)
|
(596
|
)
|
|
|
|
|
(898
|
)
|
||||
Profit
for the year
|
3,144
|
|
|
|
|
|
3,337
|
|
|
Gains/(losses)
|
|
|
£ million
|
|
Translation
impact
|
15
|
|
Transaction
impact
|
10
|
|
Operating profit before exceptional items
|
25
|
|
Net
finance charges
|
(9)
|
|
Associates
- translation impact
|
-
|
|
Profit before exceptional items and taxation
|
16
|
|
Year ended
30 June
2019
|
Year ended
30 June 2018
|
||
Exchange
rates
|
|
|
||
Translation
£1 =
|
$1.29
|
|
$1.35
|
|
Transaction £1
=
|
$1.33
|
|
$1.36
|
|
Translation
£1 =
|
€1.13
|
|
€1.13
|
|
Transaction £1
=
|
€1.13
|
|
€1.16
|
|
MOVEMENT IN NET BORROWINGS AND EQUITY
|
|
2019
|
2018
|
||
|
£
million
|
£
million
|
||
Net borrowings at the beginning of the year
|
(9,091
|
)
|
(7,892
|
)
|
Free
cash flow (a)
|
2,608
|
|
2,523
|
|
Acquisitions
(b)
|
(56
|
)
|
(594
|
)
|
Sale
of businesses and brands (c)
|
426
|
|
4
|
|
Share
buyback programme
|
(2,775
|
)
|
(1,507
|
)
|
Proceeds from issue
of share capital
|
1
|
|
1
|
|
Net
sale/(purchase) of own shares for share schemes (d)
|
50
|
|
8
|
|
Dividends paid to
non-controlling interests
|
(112
|
)
|
(80
|
)
|
Rights
issue proceeds from non-controlling interests of subsidiary
company
|
-
|
|
26
|
|
Net
movements in bonds (e)
|
1,598
|
|
1,041
|
|
Purchase of shares
of non-controlling interests (f)
|
(784
|
)
|
-
|
|
Net
movements in other borrowings (g)
|
721
|
|
(26
|
)
|
Equity
dividends paid
|
(1,623
|
)
|
(1,581
|
)
|
Net
increase/(decrease) in cash and cash equivalents
|
54
|
|
(185
|
)
|
Net
increase in bonds and other borrowings
|
(2,331
|
)
|
(1,015
|
)
|
Exchange
differences (h)
|
(22
|
)
|
80
|
|
Other
non-cash items
|
113
|
|
(79
|
)
|
Net borrowings at the end of the year
|
(11,277
|
)
|
(9,091
|
)
|
|
2019
|
2018
|
||
|
£
million
|
£
million
|
||
Equity at the beginning of the year
|
11,713
|
|
12,028
|
|
Profit
for the year
|
3,337
|
|
3,144
|
|
Exchange
adjustments (a)
|
255
|
|
(609
|
)
|
Remeasurement of
post employment plans net of taxation
|
36
|
|
368
|
|
Purchase of shares
of non-controlling interests (b)
|
(784
|
)
|
-
|
|
Rights
issue proceeds from non-controlling interests of subsidiary company
(c)
|
-
|
|
26
|
|
Dividends to
non-controlling interests
|
(114
|
)
|
(101
|
)
|
Equity
dividends paid
|
(1,623
|
)
|
(1,581
|
)
|
Share
buyback programme
|
(2,801
|
)
|
(1,507
|
)
|
Other
reserve movements
|
137
|
|
(55
|
)
|
Equity at the end of the year
|
10,156
|
|
11,713
|
|
|
|
Year ended
30 June 2019
|
|
Year
ended
30
June 2018
|
||
|
Notes
|
£ million
|
|
£
million
|
||
|
|
|
|
|
||
Sales
|
2
|
19,294
|
|
|
18,432
|
|
Excise
duties
|
|
(6,427
|
)
|
|
(6,269
|
)
|
Net
sales
|
2
|
12,867
|
|
|
12,163
|
|
Cost of
sales
|
|
(4,866
|
)
|
|
(4,634
|
)
|
Gross
profit
|
|
8,001
|
|
|
7,529
|
|
Marketing
|
|
(2,042
|
)
|
|
(1,882
|
)
|
Other
operating expenses
|
|
(1,917
|
)
|
|
(1,956
|
)
|
Operating
profit
|
2
|
4,042
|
|
|
3,691
|
|
Non-operating
items
|
3
|
144
|
|
|
-
|
|
Finance
income
|
4
|
442
|
|
|
243
|
|
Finance
charges
|
4
|
(705
|
)
|
|
(503
|
)
|
Share
of after tax results of associates and joint ventures
|
|
312
|
|
|
309
|
|
Profit
before taxation
|
|
4,235
|
|
|
3,740
|
|
Taxation
|
5
|
(898
|
)
|
|
(596
|
)
|
Profit for the year
|
|
3,337
|
|
|
3,144
|
|
|
|
|
|
|
||
Attributable
to:
|
|
|
|
|
||
Equity
shareholders of the parent company
|
|
3,160
|
|
|
3,022
|
|
Non-controlling
interests
|
|
177
|
|
|
122
|
|
|
|
3,337
|
|
|
3,144
|
|
|
|
|
|
|
||
Weighted
average number of shares
|
|
million
|
|
million
|
||
Shares
in issue excluding own shares
|
|
2,418
|
|
|
2,484
|
|
Dilutive potential
ordinary shares
|
|
10
|
|
|
11
|
|
|
|
2,428
|
|
|
2,495
|
|
|
|
|
|
|
||
|
|
pence
|
|
pence
|
||
Basic
earnings per share
|
|
130.7
|
|
|
121.7
|
|
|
|
|
|
|
||
Diluted
earnings per share
|
|
130.1
|
|
|
121.1
|
|
|
|
|
|
|
|
Year ended
30 June 2019
|
|
Year
ended
30
June 2018
|
||
|
£
million
|
|
£
million
|
||
Other comprehensive income
|
|
|
|
||
Items that will not be recycled subsequently to the income
statement
|
|
|
|
||
Net
remeasurement of post employment plans
|
|
|
|
||
-
group
|
33
|
|
|
456
|
|
-
associates and joint ventures
|
2
|
|
|
2
|
|
-
non-controlling interests
|
-
|
|
|
1
|
|
Tax on
post employment plans
|
1
|
|
|
(91
|
)
|
|
36
|
|
|
368
|
|
Items that may be recycled subsequently to the income
statement
|
|
|
|
||
Exchange
differences on translation of foreign operations
|
|
|
|
||
-
group
|
274
|
|
|
(631
|
)
|
-
associates and joint ventures
|
19
|
|
|
3
|
|
-
non-controlling interests
|
55
|
|
|
(72
|
)
|
Net
investment hedges
|
(93
|
)
|
|
91
|
|
Tax on
exchange differences - group
|
(19
|
)
|
|
7
|
|
Tax
on exchange differences - non-controlling interests
|
-
|
|
|
2
|
|
Effective portion
of changes in fair value of cash flow hedges
|
|
|
|
||
-
hedge of foreign currency debt of the group
|
180
|
|
|
(64
|
)
|
-
transaction exposure hedging of the group
|
(86
|
)
|
|
22
|
|
-
hedges by associates and joint ventures
|
(6
|
)
|
|
(15
|
)
|
-
commodity price risk of the group
|
(9
|
)
|
|
-
|
|
-
recycled to income statement - hedge of foreign currency debt of
the group
|
(82
|
)
|
|
6
|
|
-
recycled to income statement - transaction exposure hedging of the
group
|
45
|
|
|
(7
|
)
|
Tax on
effective portion of changes in fair value of cash flow
hedges
|
(11
|
)
|
|
14
|
|
Hyperinflation
adjustment
|
(22
|
)
|
|
11
|
|
Tax on
hyperinflation adjustment
|
6
|
|
|
(11
|
)
|
|
251
|
|
|
(644
|
)
|
Other comprehensive profit/(loss), net of tax, for the
year
|
287
|
|
|
(276
|
)
|
Profit
for the year
|
3,337
|
|
|
3,144
|
|
Total comprehensive income for the year
|
3,624
|
|
|
2,868
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
3,392
|
|
|
2,815
|
|
Non-controlling
interests
|
232
|
|
|
53
|
|
Total comprehensive income for the year
|
3,624
|
|
|
2,868
|
|
|
|
30 June 2019
|
|
30 June 2018
|
||||||||
|
Notes
|
£
million
|
|
£ million
|
|
£
million
|
|
£
million
|
||||
Non-current assets
|
|
|
|
|
|
|
|
|
||||
Intangible
assets
|
|
12,557
|
|
|
|
|
12,572
|
|
|
|
||
Property,
plant and equipment
|
|
4,455
|
|
|
|
|
4,089
|
|
|
|
||
Biological
assets
|
|
34
|
|
|
|
|
23
|
|
|
|
||
Investments
in associates and joint ventures
|
|
3,173
|
|
|
|
|
3,009
|
|
|
|
||
Other
investments
|
|
49
|
|
|
|
|
46
|
|
|
|
||
Other
receivables
|
|
53
|
|
|
|
|
46
|
|
|
|
||
Other
financial assets
|
|
404
|
|
|
|
|
182
|
|
|
|
||
Deferred
tax assets
|
|
138
|
|
|
|
|
122
|
|
|
|
||
Post
employment benefit assets
|
|
1,060
|
|
|
|
|
935
|
|
|
|
||
|
|
|
|
21,923
|
|
|
|
|
21,024
|
|
||
Current assets
|
|
|
|
|
|
|
|
|
||||
Inventories
|
6
|
5,472
|
|
|
|
|
5,015
|
|
|
|
||
Trade
and other receivables
|
|
2,694
|
|
|
|
|
2,678
|
|
|
|
||
Assets
held for sale
|
|
65
|
|
|
|
|
24
|
|
|
|
||
Corporate tax receivables
|
|
83
|
|
|
|
|
65
|
|
|
|
||
Other
financial assets
|
|
127
|
|
|
|
|
35
|
|
|
|
||
Cash
and cash equivalents
|
7
|
932
|
|
|
|
|
874
|
|
|
|
||
|
|
|
|
9,373
|
|
|
|
|
8,691
|
|
||
Total assets
|
|
|
|
31,296
|
|
|
|
|
29,715
|
|
||
Current liabilities
|
|
|
|
|
|
|
|
|
||||
Borrowings
and bank overdrafts
|
7
|
(1,959
|
)
|
|
|
|
(1,828
|
)
|
|
|
||
Other
financial liabilities
|
|
(333
|
)
|
|
|
|
(230
|
)
|
|
|
||
Trade
and other payables
|
|
(4,202
|
)
|
|
|
|
(3,950
|
)
|
|
|
||
Liabilities
held for sale
|
|
(32
|
)
|
|
|
|
-
|
|
|
|
||
Corporate tax payables
|
|
(378
|
)
|
|
|
|
(243
|
)
|
|
|
||
Provisions
|
|
(99
|
)
|
|
|
|
(109
|
)
|
|
|
||
|
|
|
|
(7,003
|
)
|
|
|
|
(6,360
|
)
|
||
Non-current liabilities
|
|
|
|
|
|
|
|
|
||||
Borrowings
|
7
|
(10,596
|
)
|
|
|
|
(8,074
|
)
|
|
|
||
Other
financial liabilities
|
|
(124
|
)
|
|
|
|
(212
|
)
|
|
|
||
Other
payables
|
|
(222
|
)
|
|
|
|
(209
|
)
|
|
|
||
Provisions
|
|
(317
|
)
|
|
|
|
(288
|
)
|
|
|
||
Deferred
tax liabilities
|
|
(2,032
|
)
|
|
|
|
(1,987
|
)
|
|
|
||
Post
employment benefit liabilities
|
|
(846
|
)
|
|
|
|
(872
|
)
|
|
|
||
|
|
|
|
(14,137
|
)
|
|
|
|
(11,642
|
)
|
||
Total liabilities
|
|
|
|
(21,140
|
)
|
|
|
|
(18,002
|
)
|
||
Net assets
|
|
|
|
10,156
|
|
|
|
|
11,713
|
|
||
|
|
|
|
|
|
|
|
|
||||
Equity
|
|
|
|
|
|
|
|
|
||||
Share
capital
|
|
753
|
|
|
|
|
780
|
|
|
|
||
Share
premium
|
|
1,350
|
|
|
|
|
1,349
|
|
|
|
||
Other
reserves
|
|
2,372
|
|
|
|
|
2,133
|
|
|
|
||
Retained
earnings
|
|
3,886
|
|
|
|
|
5,686
|
|
|
|
||
Equity attributable to equity shareholders of the parent
company
|
|
|
|
8,361
|
|
|
|
|
9,948
|
|
||
Non-controlling interests
|
|
|
|
1,795
|
|
|
|
|
1,765
|
|
||
Total equity
|
|
|
|
10,156
|
|
|
|
|
11,713
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2017
|
797
|
|
|
1,348
|
|
|
2,693
|
|
|
(2,176
|
)
|
|
7,651
|
|
|
5,475
|
|
|
10,313
|
|
|
1,715
|
|
|
12,028
|
|
Adoption
of IFRS 15
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(89
|
)
|
|
(89
|
)
|
|
(89
|
)
|
|
(2
|
)
|
|
(91
|
)
|
Adoption of IFRS 9 by associate
|
-
|
|
|
-
|
|
|
(3
|
)
|
|
-
|
|
|
3
|
|
|
3
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Profit
for the year
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,022
|
|
|
3,022
|
|
|
3,022
|
|
|
122
|
|
|
3,144
|
|
Other
comprehensive (loss)/income
|
-
|
|
|
-
|
|
|
(574
|
)
|
|
-
|
|
|
367
|
|
|
367
|
|
|
(207
|
)
|
|
(69
|
)
|
|
(276
|
)
|
Employee
share schemes
|
-
|
|
|
-
|
|
|
-
|
|
|
32
|
|
|
(7
|
)
|
|
25
|
|
|
25
|
|
|
-
|
|
|
25
|
|
Share-based
incentive plans
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
39
|
|
|
39
|
|
|
39
|
|
|
-
|
|
|
39
|
|
Share-based
incentive plans in respect of associates
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
4
|
|
|
4
|
|
|
-
|
|
|
4
|
|
Tax on
share-based incentive plans
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
|
(2
|
)
|
Shares
issued
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
Disposal of non-controlling interests
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
|
(1
|
)
|
Purchase
of non-controlling interests
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(72
|
)
|
|
(72
|
)
|
|
(72
|
)
|
|
70
|
|
|
(2
|
)
|
Purchase of rights issue of non-controlling interests
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5
|
)
|
|
(5
|
)
|
|
(5
|
)
|
|
31
|
|
|
26
|
|
Change
in fair value of put option
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
7
|
|
|
7
|
|
|
7
|
|
|
-
|
|
|
7
|
|
Share
buyback programme
|
(17
|
)
|
|
-
|
|
|
17
|
|
|
-
|
|
|
(1,507
|
)
|
|
(1,507
|
)
|
|
(1,507
|
)
|
|
-
|
|
|
(1,507
|
)
|
Dividends
paid
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,581
|
)
|
|
(1,581
|
)
|
|
(1,581
|
)
|
|
(101
|
)
|
|
(1,682
|
)
|
At 30 June 2018
|
780
|
|
|
1,349
|
|
|
2,133
|
|
|
(2,144
|
)
|
|
7,830
|
|
|
5,686
|
|
|
9,948
|
|
|
1,765
|
|
|
11,713
|
|
Profit
for the year
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3,160
|
|
|
3,160
|
|
|
3,160
|
|
|
177
|
|
|
3,337
|
|
Other
comprehensive income
|
-
|
|
|
-
|
|
|
212
|
|
|
-
|
|
|
20
|
|
|
20
|
|
|
232
|
|
|
55
|
|
|
287
|
|
Employee
share schemes
|
-
|
|
|
-
|
|
|
-
|
|
|
118
|
|
|
(49
|
)
|
|
69
|
|
|
69
|
|
|
-
|
|
|
69
|
|
Share-based
incentive plans
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
49
|
|
|
49
|
|
|
49
|
|
|
-
|
|
|
49
|
|
Share-based
incentive plans in respect of associates
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
3
|
|
|
3
|
|
|
-
|
|
|
3
|
|
Tax on
share-based incentive plans
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
20
|
|
|
20
|
|
|
20
|
|
|
-
|
|
|
20
|
|
Shares
issued
|
-
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
-
|
|
|
1
|
|
Purchase
of non-controlling interests
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(694
|
)
|
|
(694
|
)
|
|
(694
|
)
|
|
(90
|
)
|
|
(784
|
)
|
Non-controlling
interest in respect of new subsidiary
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
|
2
|
|
Change
in fair value of put option
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
-
|
|
|
(3
|
)
|
Share
buyback programme
|
(27
|
)
|
|
-
|
|
|
27
|
|
|
-
|
|
|
(2,801
|
)
|
|
(2,801
|
)
|
|
(2,801
|
)
|
|
-
|
|
|
(2,801
|
)
|
Dividends
declared
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1,623
|
)
|
|
(1,623
|
)
|
|
(1,623
|
)
|
|
(114
|
)
|
|
(1,737
|
)
|
At 30 June 2019
|
753
|
|
|
1,350
|
|
|
2,372
|
|
|
(2,026
|
)
|
|
5,912
|
|
|
3,886
|
|
|
8,361
|
|
|
1,795
|
|
|
10,156
|
|
|
Year
ended
30 June
2019
|
|
Year
ended
30
June
2018
|
||||||||
|
£ million
|
|
£ million
|
|
£
million
|
|
£
million
|
||||
Cash
flows from operating activities
|
|
|
|
|
|
|
|
||||
Profit
for the year
|
3,337
|
|
|
|
|
3,144
|
|
|
|
||
Taxation
|
898
|
|
|
|
|
596
|
|
|
|
||
Share
of after tax results of associates and joint ventures
|
(312
|
)
|
|
|
|
(309
|
)
|
|
|
||
Net
finance charges
|
263
|
|
|
|
|
260
|
|
|
|
||
Non-operating
items
|
(144
|
)
|
|
|
|
-
|
|
|
|
||
Operating
profit
|
|
|
4,042
|
|
|
|
|
3,691
|
|
||
Increase in
inventories
|
(434
|
)
|
|
|
|
(271
|
)
|
|
|
||
Decrease/(increase)
in trade and other receivables
|
11
|
|
|
|
|
(202
|
)
|
|
|
||
Increase
in trade and other payables and provisions
|
201
|
|
|
|
|
314
|
|
|
|
||
Net
increase in working capital
|
|
|
(222
|
)
|
|
|
|
(159
|
)
|
||
Depreciation,
amortisation and impairment
|
374
|
|
|
|
|
493
|
|
|
|
||
Dividends
received
|
168
|
|
|
|
|
159
|
|
|
|
||
Post
employment payments less amounts included in operating
profit
|
(121
|
)
|
|
|
|
(108
|
)
|
|
|
||
Other
items
|
64
|
|
|
|
|
10
|
|
|
|
||
|
|
|
485
|
|
|
|
|
554
|
|
||
Cash
generated from operations
|
|
|
4,305
|
|
|
|
|
4,086
|
|
||
Interest
received
|
216
|
|
|
|
|
167
|
|
|
|
||
Interest
paid
|
(468
|
)
|
|
|
|
(418
|
)
|
|
|
||
Taxation
paid
|
(805
|
)
|
|
|
|
(751
|
)
|
|
|
||
|
|
|
(1,057
|
)
|
|
|
|
(1,002
|
)
|
||
Net
cash inflow from operating activities
|
|
|
3,248
|
|
|
|
|
3,084
|
|
||
Cash
flows from investing activities
|
|
|
|
|
|
|
|
||||
Disposal of
property, plant and equipment and computer software
|
32
|
|
|
|
|
40
|
|
|
|
||
Purchase of
property, plant and equipment and computer software
|
(671
|
)
|
|
|
|
(584
|
)
|
|
|
||
Movements in loans
and other investments
|
(1
|
)
|
|
|
|
(17
|
)
|
|
|
||
Sale of
businesses and brands
|
426
|
|
|
|
|
4
|
|
|
|
||
Acquisition of
businesses
|
(56
|
)
|
|
|
|
(594
|
)
|
|
|
||
Net
cash outflow from investing activities
|
|
|
(270
|
)
|
|
|
|
(1,151
|
)
|
||
Cash
flows from financing activities
|
|
|
|
|
|
|
|
||||
Share
buyback programme
|
(2,775
|
)
|
|
|
|
(1,507
|
)
|
|
|
||
Proceeds from issue
of share capital
|
1
|
|
|
|
|
1
|
|
|
|
||
Net
sale of own shares for share schemes
|
50
|
|
|
|
|
8
|
|
|
|
||
Dividends paid to
non-controlling interests
|
(112
|
)
|
|
|
|
(80
|
)
|
|
|
||
Rights
issue proceeds from non-controlling interests
|
-
|
|
|
|
|
26
|
|
|
|
||
Proceeds from
bonds
|
2,766
|
|
|
|
|
2,612
|
|
|
|
||
Repayment of
bonds
|
(1,168
|
)
|
|
|
|
(1,571
|
)
|
|
|
||
Purchase of shares
of non-controlling interests
|
(784
|
)
|
|
|
|
-
|
|
|
|
||
Net
movements in other borrowings
|
721
|
|
|
|
|
(26
|
)
|
|
|
||
Equity
dividends paid
|
(1,623
|
)
|
|
|
|
(1,581
|
)
|
|
|
||
Net
cash outflow from financing activities
|
|
|
(2,924
|
)
|
|
|
|
(2,118
|
)
|
||
|
|
|
|
|
|
|
|
||||
Net
increase/(decrease) in net cash and cash equivalents
|
|
|
54
|
|
|
|
|
(185
|
)
|
||
Exchange
differences
|
|
|
(26
|
)
|
|
|
|
(39
|
)
|
||
Net
cash and cash equivalents at beginning of the year
|
|
|
693
|
|
|
|
|
917
|
|
||
Net
cash and cash equivalents at end of the year
|
|
|
721
|
|
|
|
|
693
|
|
||
|
|
|
|
|
|
|
|
||||
Net
cash and cash equivalents consist of:
|
|
|
|
|
|
|
|
||||
Cash
and cash equivalents
|
|
|
932
|
|
|
|
|
874
|
|
||
Bank
overdrafts
|
|
|
(211
|
)
|
|
|
|
(181
|
)
|
||
|
|
|
721
|
|
|
|
|
693
|
|
Year ended
|
North America
|
Europe
and Turkey
|
Africa
|
Latin America and
Caribbean
|
Asia Pacific
|
ISC
|
Eliminate
inter- segment sales
|
Total
operating segments
|
Corporate and other
|
Total
|
||||||||||
30 June 2019
|
£ million
|
£
million
|
£
million
|
£
million
|
£ million
|
£
million
|
£ million
|
£
million
|
£
million
|
£ million
|
||||||||||
Sales
|
5,074
|
|
5,132
|
|
2,235
|
|
1,444
|
|
5,356
|
|
1,739
|
|
(1,739
|
)
|
19,241
|
|
53
|
|
19,294
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
4,034
|
|
2,951
|
|
1,529
|
|
1,095
|
|
2,656
|
|
1,843
|
|
(1,738
|
)
|
12,370
|
|
54
|
|
12,424
|
|
Acquisitions
and disposals
|
88
|
|
1
|
|
1
|
|
1
|
|
1
|
|
-
|
|
-
|
|
92
|
|
-
|
|
92
|
|
ISC
allocation
|
11
|
|
63
|
|
5
|
|
15
|
|
11
|
|
(105
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
327
|
|
(76
|
)
|
62
|
|
19
|
|
20
|
|
1
|
|
(1
|
)
|
352
|
|
(1
|
)
|
351
|
|
Net sales
|
4,460
|
|
2,939
|
|
1,597
|
|
1,130
|
|
2,688
|
|
1,739
|
|
(1,739
|
)
|
12,814
|
|
53
|
|
12,867
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
1,755
|
|
972
|
|
257
|
|
312
|
|
671
|
|
139
|
|
-
|
|
4,106
|
|
(186
|
)
|
3,920
|
|
Acquisitions
and disposals
|
29
|
|
(1
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
28
|
|
-
|
|
28
|
|
ISC
allocation
|
13
|
|
72
|
|
6
|
|
32
|
|
16
|
|
(139
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
151
|
|
(29
|
)
|
12
|
|
21
|
|
16
|
|
-
|
|
-
|
|
171
|
|
(3
|
)
|
168
|
|
Operating profit/(loss) before exceptional items
|
1,948
|
|
1,014
|
|
275
|
|
365
|
|
703
|
|
-
|
|
-
|
|
4,305
|
|
(189
|
)
|
4,116
|
|
Exceptional
items
|
-
|
|
(18
|
)
|
-
|
|
-
|
|
(35
|
)
|
-
|
|
-
|
|
(53
|
)
|
(21
|
)
|
(74
|
)
|
Operating profit/(loss)
|
1,948
|
|
996
|
|
275
|
|
365
|
|
668
|
|
-
|
|
-
|
|
4,252
|
|
(210
|
)
|
4,042
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
144
|
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(263
|
)
|
|||||||||
Share
of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
312
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
4,235
|
|
Year ended
|
North
America
|
Europe
and Turkey
|
Africa
|
Latin America and
Caribbean
|
Asia Pacific
|
ISC
|
Eliminate
inter-segment
sales
|
Total
operating
segments
|
Corporate and
other
|
Total
|
||||||||||
30 June 2018
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
£
million
|
£ million
|
£
million
|
£ million
|
£ million
|
||||||||||
Sales
|
4,671
|
|
5,232
|
|
2,083
|
|
1,352
|
|
5,042
|
|
1,457
|
|
(1,457
|
)
|
18,380
|
|
52
|
|
18,432
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
4,138
|
|
2,821
|
|
1,467
|
|
1,064
|
|
2,555
|
|
1,512
|
|
(1,425
|
)
|
12,132
|
|
48
|
|
12,180
|
|
Acquisitions
and disposals
|
50
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
50
|
|
-
|
|
50
|
|
ISC
allocation
|
11
|
|
53
|
|
4
|
|
11
|
|
8
|
|
(87
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
(83
|
)
|
58
|
|
20
|
|
(6
|
)
|
(60
|
)
|
32
|
|
(32
|
)
|
(71
|
)
|
4
|
|
(67
|
)
|
Net sales
|
4,116
|
|
2,932
|
|
1,491
|
|
1,069
|
|
2,503
|
|
1,457
|
|
(1,457
|
)
|
12,111
|
|
52
|
|
12,163
|
|
Operating profit/(loss)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
At
budgeted exchange rates(i)
|
1,925
|
|
941
|
|
180
|
|
298
|
|
588
|
|
112
|
|
-
|
|
4,044
|
|
(160
|
)
|
3,884
|
|
Acquisitions
and disposals
|
4
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
4
|
|
-
|
|
4
|
|
ISC
allocation
|
14
|
|
67
|
|
5
|
|
14
|
|
12
|
|
(112
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
Retranslation
to actual exchange rates
|
(61
|
)
|
20
|
|
6
|
|
(4
|
)
|
(32
|
)
|
-
|
|
-
|
|
(71
|
)
|
2
|
|
(69
|
)
|
Operating profit/(loss) before exceptional items
|
1,882
|
|
1,028
|
|
191
|
|
308
|
|
568
|
|
-
|
|
-
|
|
3,977
|
|
(158
|
)
|
3,819
|
|
Exceptional items
|
-
|
|
-
|
|
(128
|
)
|
-
|
|
-
|
|
-
|
|
-
|
|
(128
|
)
|
-
|
|
(128
|
)
|
Operating profit/(loss)
|
1,882
|
|
1,028
|
|
63
|
|
308
|
|
568
|
|
-
|
|
-
|
|
3,849
|
|
(158
|
)
|
3,691
|
|
Non-operating
items
|
|
|
|
|
|
|
|
|
|
-
|
|
|||||||||
Net
finance charges
|
|
|
|
|
|
|
|
|
|
(260
|
)
|
|||||||||
Share
of after tax results of associates and joint
ventures
|
|
|
|
|
|
|
|
|
|
309
|
|
|||||||||
Profit before taxation
|
|
|
|
|
|
|
|
|
|
3,740
|
|
|
Year ended
30 June 2019
|
|
Year
ended
30 June
2018
|
||
|
£ million
|
|
£ million
|
||
|
|
|
|
||
Items included in operating profit
|
|
|
|
||
Indirect tax in Korea
|
(35
|
)
|
|
-
|
|
Guaranteed minimum pension equalisation
|
(21
|
)
|
|
-
|
|
French tax audit penalty
|
(18
|
)
|
|
-
|
|
Brand, goodwill, tangible and other assets impairment
|
-
|
|
|
(128
|
)
|
|
(74
|
)
|
|
(128
|
)
|
Non-operating items
|
|
|
|
||
Sale of businesses
|
|
|
|
||
Portfolio of 19 brands
|
155
|
|
|
-
|
|
USL wine business
|
(2
|
)
|
|
-
|
|
United National Breweries
|
(9
|
)
|
|
-
|
|
|
144
|
|
|
-
|
|
|
|
|
|
||
French tax audit interest
|
(9
|
)
|
|
-
|
|
Exceptional items before taxation
|
61
|
|
|
(128
|
)
|
|
|
|
|
||
Items included in taxation
|
|
|
|
||
Tax on
exceptional operating items
|
4
|
|
|
13
|
|
Tax on
exceptional non-operating items
|
(33
|
)
|
|
-
|
|
Exceptional
taxation
|
(10
|
)
|
|
190
|
|
|
(39
|
)
|
|
203
|
|
|
|
|
|
||
Total exceptional items
|
22
|
|
|
75
|
|
|
|
|
|
||
Attributable to:
|
|
|
|
||
Equity
shareholders of the parent company
|
(4
|
)
|
|
75
|
|
Non-controlling
interests
|
26
|
|
|
-
|
|
Total exceptional items
|
22
|
|
|
75
|
|
|
Year ended
30 June 2019
|
|
Year
ended
30
June 2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Interest
income
|
232
|
|
|
155
|
|
Fair
value gain on financial instruments
|
155
|
|
|
61
|
|
Total
interest income
|
387
|
|
|
216
|
|
Interest
charges
|
(478
|
)
|
|
(395
|
)
|
Fair
value loss on financial instruments
|
(157
|
)
|
|
(62
|
)
|
Total
interest charges
|
(635
|
)
|
|
(457
|
)
|
Net
interest charges
|
(248
|
)
|
|
(241
|
)
|
|
|
|
|
||
Net
finance income in respect of post employment plans in
surplus
|
29
|
|
|
9
|
|
Hyperinflation
adjustment in respect of Venezuela (a)
|
10
|
|
|
18
|
|
Interest
income in respect of direct and indirect tax
|
16
|
|
|
-
|
|
Total
other finance income
|
55
|
|
|
27
|
|
Net
finance charge in respect of post employment plans in
deficit
|
(22
|
)
|
|
(20
|
)
|
Unwinding of
discounts
|
(17
|
)
|
|
(14
|
)
|
Interest
charge in respect of direct and indirect tax
|
(11
|
)
|
|
(10
|
)
|
Change
in financial liability (Level 3)
|
(8
|
)
|
|
-
|
|
Other
finance charges (exceptional)*
|
(9
|
)
|
|
-
|
|
Other
finance charges
|
(3
|
)
|
|
(2
|
)
|
Total
other finance charges
|
(70
|
)
|
|
(46
|
)
|
Net
other finance charges
|
(15
|
)
|
|
(19
|
)
|
|
Year ended 30 June 2019
|
|
Year ended 30 June 2018
|
||
|
At
estimated exchange rate
|
At
DICOM exchange rate
|
|
At
estimated
exchange
rate
|
At
DICOM
exchange
rate
|
|
403,700 VES/£
|
8,553 VES/£
|
|
3,858,826
VEF/£
|
151,800
VEF/£
|
|
£
million
|
£
million
|
|
£
million
|
£
million
|
Net
sales
|
-
|
3
|
|
1
|
27
|
Operating
profit
|
-
|
2
|
|
-
|
16
|
Other finance
income - hyperinflation adjustment
|
10
|
455
|
|
18
|
458
|
Net cash inflow
from operating activities
|
-
|
5
|
|
1
|
12
|
Net
assets
|
56
|
2,643
|
|
69
|
1,744
|
|
30 June 2019
|
|
30
June 2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Raw
materials and consumables
|
338
|
|
|
321
|
|
Work in
progress
|
46
|
|
|
44
|
|
Maturing
inventories
|
4,334
|
|
|
4,028
|
|
Finished goods and
goods for resale
|
754
|
|
|
622
|
|
|
5,472
|
|
|
5,015
|
|
|
30 June 2019
|
|
30 June 2018
|
||
|
£ million
|
|
£
million
|
||
|
|
|
|
||
Borrowings
due within one year and bank overdrafts
|
(1,959
|
)
|
|
(1,828
|
)
|
Borrowings
due after one year
|
(10,596
|
)
|
|
(8,074
|
)
|
Fair
value of foreign currency forwards and swaps
|
370
|
|
|
107
|
|
Fair
value of interest rate hedging instruments
|
104
|
|
|
(15
|
)
|
Finance
lease liabilities
|
(128
|
)
|
|
(155
|
)
|
|
(12,209
|
)
|
|
(9,965
|
)
|
Cash
and cash equivalents
|
932
|
|
|
874
|
|
|
(11,277
|
)
|
|
(9,091
|
)
|
|
Year ended 30 June
2019
|
|
Year
ended 30 June 2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Net increase/(decrease) in cash and cash equivalents before
exchange
|
54
|
|
|
(185
|
)
|
Net
increase in bonds and other borrowings(i)
|
(2,331
|
)
|
|
(1,015
|
)
|
Net increase in net borrowings from cash flows
|
(2,277
|
)
|
|
(1,200
|
)
|
Exchange
differences on net borrowings
|
(22
|
)
|
|
80
|
|
Other
non-cash items(ii)
|
113
|
|
|
(79
|
)
|
Net borrowings at beginning of the year
|
(9,091
|
)
|
|
(7,892
|
)
|
Net borrowings at end of the year
|
(11,277
|
)
|
|
(9,091
|
)
|
|
30 June 2019
|
|
30
June 2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
(restated(i))
|
||
Derivative
assets
|
531
|
|
|
217
|
|
Derivative
liabilities
|
(129
|
)
|
|
(123
|
)
|
Valuation
techniques based on observable market input (Level 2)
|
402
|
|
|
94
|
|
Financial
assets - other
|
86
|
|
|
89
|
|
Financial
liabilities - other
|
(401
|
)
|
|
(352
|
)
|
Valuation
techniques based on unobservable market input (Level
3)
|
(315
|
)
|
|
(263
|
)
|
|
Year ended 30 June
2019
|
|
Year ended 30 June 2018
|
||
|
£
million
|
|
£
million
|
||
Amounts recognised as distributions to equity
shareholders in the year
|
|
|
|
||
Final dividend for the year ended 30 June 2018 of
40.4 pence per share (2017 - 38.5 pence)
|
993
|
|
|
968
|
|
Interim dividend for the year ended 30 June 2019 of
26.1 per share (2018 - 24.9 pence)
|
630
|
|
|
613
|
|
|
1,623
|
|
|
1,581
|
|
|
Portfolio of 19
brands
|
|
USL wine
business
|
|
Total
|
|||
£ million
|
|
£
million
|
|
£ million
|
||||
Sale consideration
|
|
|
|
|
|
|||
Cash received in year
|
435
|
|
|
3
|
|
|
438
|
|
Transaction costs paid
|
(12
|
)
|
|
-
|
|
|
(12
|
)
|
Net cash received
|
423
|
|
|
3
|
|
|
426
|
|
Transaction costs payable
|
(4
|
)
|
|
-
|
|
|
(4
|
)
|
|
419
|
|
|
3
|
|
|
422
|
|
Net assets disposed of
|
|
|
|
|
|
|||
Brands
|
(230
|
)
|
|
-
|
|
|
(230
|
)
|
Goodwill
|
(12
|
)
|
|
-
|
|
|
(12
|
)
|
Property,
plant and equipment
|
(2
|
)
|
|
(4
|
)
|
|
(6
|
)
|
Investment
in associates
|
(3
|
)
|
|
-
|
|
|
(3
|
)
|
Inventories
|
(17
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|
(264
|
)
|
|
(5
|
)
|
|
(269
|
)
|
Gain/(loss) on disposal before taxation
|
155
|
|
|
(2
|
)
|
|
153
|
|
Taxation
|
(33
|
)
|
|
-
|
|
|
(33
|
)
|
Gain/(loss) on disposal after taxation
|
122
|
|
|
(2
|
)
|
|
120
|
|
|
|
North America
million
|
|
Europe and Turkey
million
|
|
Africa
million
|
|
Latin America and Caribbean
million
|
|
Asia Pacific
million
|
|
Corporate
million
|
|
Total
million
|
|||||||
Volume (equivalent units)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
48.2
|
|
|
46.3
|
|
|
33.2
|
|
|
22.2
|
|
|
90.5
|
|
|
-
|
|
|
240.4
|
|
Disposals(iv)
|
|
(2.7
|
)
|
|
(0.1
|
)
|
|
-
|
|
|
-
|
|
|
(0.1
|
)
|
|
-
|
|
|
(2.9
|
)
|
2018 adjusted
|
|
45.5
|
|
|
46.2
|
|
|
33.2
|
|
|
22.2
|
|
|
90.4
|
|
|
-
|
|
|
237.5
|
|
Disposals(iv)
|
|
2.8
|
|
|
0.1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2.9
|
|
Organic movement
|
|
1.1
|
|
|
(0.9
|
)
|
|
0.4
|
|
|
0.2
|
|
|
4.7
|
|
|
-
|
|
|
5.5
|
|
2019 reported
|
|
49.4
|
|
|
45.4
|
|
|
33.6
|
|
|
22.4
|
|
|
95.1
|
|
|
-
|
|
|
245.9
|
|
Organic movement %
|
|
2
|
|
|
(2
|
)
|
|
1
|
|
|
1
|
|
|
5
|
|
|
-
|
|
|
2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
£
million
|
|
Europe and Turkey
£ million
|
|
Africa
£ million
|
|
Latin America and
Caribbean
£
million
|
|
Asia Pacific
£
million
|
|
Corporate
£
million
|
|
Total
£
million
|
|||||||
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
4,671
|
|
|
5,232
|
|
|
2,083
|
|
|
1,352
|
|
|
5,042
|
|
|
52
|
|
|
18,432
|
|
Exchange(i)
|
|
200
|
|
|
(291
|
)
|
|
12
|
|
|
(35
|
)
|
|
(120
|
)
|
|
-
|
|
|
(234
|
)
|
Disposals(iv)
|
|
(185
|
)
|
|
(7
|
)
|
|
(4
|
)
|
|
(1
|
)
|
|
(10
|
)
|
|
-
|
|
|
(207
|
)
|
2018 adjusted
|
|
4,686
|
|
|
4,934
|
|
|
2,091
|
|
|
1,316
|
|
|
4,912
|
|
|
52
|
|
|
17,991
|
|
Acquisitions and disposals(iv)
|
|
139
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
146
|
|
Organic movement
|
|
249
|
|
|
195
|
|
|
142
|
|
|
127
|
|
|
443
|
|
|
1
|
|
|
1,157
|
|
2019 reported
|
|
5,074
|
|
|
5,132
|
|
|
2,235
|
|
|
1,444
|
|
|
5,356
|
|
|
53
|
|
|
19,294
|
|
Organic movement %
|
|
5
|
|
|
4
|
|
|
7
|
|
|
10
|
|
|
9
|
|
|
2
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North
America
£
million
|
|
Europe
and Turkey
£
million
|
|
Africa
£
million
|
|
Latin America and
Caribbean
£
million
|
|
Asia Pacific
£
million
|
|
Corporate
£
million
|
|
Total
£
million
|
|||||||
Net sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
4,116
|
|
|
2,932
|
|
|
1,491
|
|
|
1,069
|
|
|
2,503
|
|
|
52
|
|
|
12,163
|
|
Exchange(ii)
|
|
176
|
|
|
(95
|
)
|
|
8
|
|
|
(29
|
)
|
|
(36
|
)
|
|
-
|
|
|
24
|
|
Disposals(iv)
|
|
(143
|
)
|
|
(3
|
)
|
|
(3
|
)
|
|
(1
|
)
|
|
(6
|
)
|
|
-
|
|
|
(156
|
)
|
2018 adjusted
|
|
4,149
|
|
|
2,834
|
|
|
1,496
|
|
|
1,039
|
|
|
2,461
|
|
|
52
|
|
|
12,031
|
|
Acquisitions and disposals(iv)
|
|
95
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
99
|
|
Organic movement
|
|
216
|
|
|
104
|
|
|
100
|
|
|
90
|
|
|
226
|
|
|
1
|
|
|
737
|
|
2019 reported
|
|
4,460
|
|
|
2,939
|
|
|
1,597
|
|
|
1,130
|
|
|
2,688
|
|
|
53
|
|
|
12,867
|
|
Organic movement %
|
|
5
|
|
|
4
|
|
|
7
|
|
|
9
|
|
|
9
|
|
|
2
|
|
|
6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Marketing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
662
|
|
|
474
|
|
|
158
|
|
|
196
|
|
|
388
|
|
|
4
|
|
|
1,882
|
|
Exchange
|
|
24
|
|
|
(10
|
)
|
|
1
|
|
|
(7
|
)
|
|
(3
|
)
|
|
-
|
|
|
5
|
|
Reclassification(iii)
|
|
-
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
Disposals(iv)
|
|
(1
|
)
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(1
|
)
|
2018 adjusted
|
|
685
|
|
|
464
|
|
|
169
|
|
|
189
|
|
|
385
|
|
|
4
|
|
|
1,896
|
|
Acquisitions and disposals(iv)
|
|
2
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
2
|
|
Organic movement
|
|
75
|
|
|
26
|
|
|
5
|
|
|
12
|
|
|
27
|
|
|
(1
|
)
|
|
144
|
|
2019 reported
|
|
762
|
|
|
490
|
|
|
174
|
|
|
201
|
|
|
412
|
|
|
3
|
|
|
2,042
|
|
Organic movement %
|
|
11
|
|
|
6
|
|
|
3
|
|
|
6
|
|
|
7
|
|
|
(25
|
)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Operating profit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2018 reported
|
|
1,882
|
|
|
1,028
|
|
|
191
|
|
|
308
|
|
|
568
|
|
|
(158
|
)
|
|
3,819
|
|
Exchange(ii)
|
|
74
|
|
|
(35
|
)
|
|
(6
|
)
|
|
(2
|
)
|
|
(6
|
)
|
|
-
|
|
|
25
|
|
Acquisitions
and disposals(iv)
|
|
(90
|
)
|
|
(2
|
)
|
|
(2
|
)
|
|
-
|
|
|
(2
|
)
|
|
-
|
|
|
(96
|
)
|
2018 adjusted
|
|
1,866
|
|
|
991
|
|
|
183
|
|
|
306
|
|
|
560
|
|
|
(158
|
)
|
|
3,748
|
|
Acquisitions and disposals(iv)
|
|
30
|
|
|
1
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
32
|
|
Organic movement
|
|
52
|
|
|
22
|
|
|
91
|
|
|
59
|
|
|
143
|
|
|
(31
|
)
|
|
336
|
|
2019 reported
|
|
1,948
|
|
|
1,014
|
|
|
275
|
|
|
365
|
|
|
703
|
|
|
(189
|
)
|
|
4,116
|
|
Organic movement %
|
|
3
|
|
|
2
|
|
|
50
|
|
|
19
|
|
|
26
|
|
|
(20
|
)
|
|
9
|
|
Organic operating margin %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
2019
|
|
43.9
|
%
|
|
34.5
|
%
|
|
17.2
|
%
|
|
32.3
|
%
|
|
26.2
|
%
|
|
n/a
|
|
32.0
|
%
|
|
2018
|
|
45.0
|
%
|
|
35.0
|
%
|
|
12.2
|
%
|
|
29.5
|
%
|
|
22.8
|
%
|
|
n/a
|
|
31.2
|
%
|
|
Margin improvement / (decline) (bps)
|
|
(103
|
)
|
|
(49
|
)
|
|
494
|
|
|
288
|
|
|
341
|
|
|
n/a
|
|
83
|
|
|
Volume
|
|
Sales
|
|
Net sales
|
|
Marketing
|
|
Operating
profit
|
|||||
|
equ. units million
|
|
£ million
|
|
£ million
|
|
£ million
|
|
£ million
|
|||||
Year ended 30 June 2018
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
|
|
|
|
|
|
|
|
|
|
|||||
Transaction
costs
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio of 19
brands
|
(2.8
|
)
|
|
(199
|
)
|
|
(153
|
)
|
|
(1
|
)
|
|
(99
|
)
|
Nepal
|
(0.1
|
)
|
|
(8
|
)
|
|
(3
|
)
|
|
-
|
|
|
(1
|
)
|
|
(2.9
|
)
|
|
(207
|
)
|
|
(156
|
)
|
|
(1
|
)
|
|
(100
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
and disposals
|
(2.9
|
)
|
|
(207
|
)
|
|
(156
|
)
|
|
(1
|
)
|
|
(96
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|||||
Year ended 30 June 2019
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions
|
|
|
|
|
|
|
|
|
|
|||||
Casamigos
|
-
|
|
|
11
|
|
|
10
|
|
|
1
|
|
|
3
|
|
Change in contingent
consideration
|
-
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(15
|
)
|
|
-
|
|
|
11
|
|
|
10
|
|
|
1
|
|
|
(12
|
)
|
|
|
|
|
|
|
|
|
|
|
|||||
Disposals
|
|
|
|
|
|
|
|
|
|
|||||
Portfolio of 19
brands
|
2.9
|
|
|
135
|
|
|
89
|
|
|
1
|
|
|
44
|
|
|
2.9
|
|
|
135
|
|
|
89
|
|
|
1
|
|
|
44
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Acquisitions and disposals
|
2.9
|
|
|
146
|
|
|
99
|
|
|
2
|
|
|
32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
||
|
|
|
£
million
|
|
£
million
|
||
|
|
|
|
|
|
||
Profit
attributable to equity shareholders of the parent
company
|
|
|
3,160
|
|
|
3,022
|
|
Exceptional
operating and non-operating items attributable to equity
shareholders of the parent company
|
|
|
(61
|
)
|
|
128
|
|
Exceptional taxation charges / (benefits) attributable to equity
shareholders of the parent company
|
|
|
36
|
|
|
(190
|
)
|
Tax in
respect of exceptional operating and non-operating items
attributable to equity shareholders of the parent
company
|
|
|
29
|
|
|
(13
|
)
|
|
|
|
3,164
|
|
|
2,947
|
|
|
|
|
|
|
|
||
Weighted average number of shares
|
|
|
million
|
|
million
|
||
Shares
in issue excluding own shares
|
|
|
2,418
|
|
|
2,484
|
|
Dilutive
potential ordinary shares
|
|
|
10
|
|
|
11
|
|
|
|
|
2,428
|
|
|
2,495
|
|
|
|
|
|
|
|
||
|
|
|
pence
|
|
pence
|
||
Basic earnings per share before exceptional items
|
|
|
130.8
|
|
|
118.6
|
|
|
|
|
|
|
|
||
Diluted earnings per share before exceptional items
|
|
|
130.3
|
|
|
118.1
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£ million
|
||
|
|
|
|
||
Net cash inflow from operating activities
|
3,248
|
|
|
3,084
|
|
Disposal
of property, plant and equipment and computer software
|
32
|
|
|
40
|
|
Purchase
of property, plant and equipment and computer software
|
(671
|
)
|
|
(584
|
)
|
Movements
in loans and other investments
|
(1
|
)
|
|
(17
|
)
|
Free cash flow
|
2,608
|
|
|
2,523
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Operating
profit
|
4,042
|
|
|
3,691
|
|
Exceptional
operating items
|
74
|
|
|
128
|
|
Profit
before exceptional operating items attributable to non-controlling
interests
|
(151
|
)
|
|
(122
|
)
|
Share
of after tax results of associates and joint ventures
|
312
|
|
|
309
|
|
Tax
at the tax rate before exceptional items of 20.6% (2018 -
20.7%)
|
(881
|
)
|
|
(829
|
)
|
|
3,396
|
|
|
3,177
|
|
|
|
|
|
||
Average
net assets (excluding net post employment
assets/liabilities)
|
10,847
|
|
|
12,067
|
|
Average
non-controlling interests
|
(1,776
|
)
|
|
(1,749
|
)
|
Average
net borrowings
|
10,240
|
|
|
8,727
|
|
Average
integration and restructuring costs (net of tax)
|
1,639
|
|
|
1,639
|
|
Goodwill at 1 July
2004
|
1,562
|
|
|
1,562
|
|
Average
total invested capital
|
22,512
|
|
|
22,246
|
|
|
|
|
|
||
Return
on average total invested capital
|
15.1%
|
|
14.3%
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Borrowings due within one year
|
1,959
|
|
|
1,828
|
|
Borrowings due after one year
|
10,596
|
|
|
8,074
|
|
Fair value of foreign currency derivatives and interest rate
hedging instruments
|
(474
|
)
|
|
(92
|
)
|
Finance lease liabilities
|
128
|
|
|
155
|
|
Less: Cash and cash equivalents
|
(932
|
)
|
|
(874
|
)
|
Net borrowings
|
11,277
|
|
|
9,091
|
|
Post employment benefit liabilities before tax
|
846
|
|
|
872
|
|
Adjusted net borrowings
|
12,123
|
|
|
9,963
|
|
|
|
|
|
||
|
|
|
|
||
Operating profit
|
4,042
|
|
|
3,691
|
|
Exceptional operating items
|
74
|
|
|
128
|
|
Depreciation, amortisation and impairment (excluding exceptional
items)
|
374
|
|
|
368
|
|
Share of after tax results of associates and joint
ventures
|
312
|
|
|
309
|
|
Adjusted EBITDA
|
4,802
|
|
|
4,496
|
|
|
|
|
|
||
|
|
|
|
||
Adjusted net borrowings to adjusted EBITDA (x)
|
2.5
|
|
|
2.2
|
|
|
2019
|
|
2018
|
||
|
£
million
|
|
£
million
|
||
|
|
|
|
||
Tax
before exceptional items (a)
|
859
|
|
|
799
|
|
Tax in
respect of exceptional items
|
29
|
|
|
(13
|
)
|
Exceptional tax charge/(credit)
|
10
|
|
|
(190
|
)
|
Taxation
on profit (b)
|
898
|
|
|
596
|
|
|
|
|
|
||
Profit
from operations before taxation and exceptional items
(c)
|
4,174
|
|
|
3,868
|
|
Non-operating
items
|
144
|
|
|
-
|
|
Exceptional finance charges
|
(9
|
)
|
|
-
|
|
Exceptional operating items
|
(74
|
)
|
|
(128
|
)
|
Profit
before taxation (d)
|
4,235
|
|
|
3,740
|
|
|
|
|
|
||
Tax rate before exceptional items (a/c)
|
20.6
|
%
|
|
20.7
|
%
|
Tax
rate from operations after exceptional items (b/d)
|
21.2
|
%
|
|
15.9
|
%
|
|
●
|
economic, political, social or other developments
in countries and markets in which Diageo operates, which may
contribute to a reduction in demand for Diageo's products, adverse
impacts on Diageo's customer, supplier and/or financial
counterparties, or the imposition of import, investment or currency
restrictions (including the potential impact of any global,
regional or local trade wars or any tariffs, duties or other
restrictions or barriers imposed on the import or export of goods
between territories, including but not limited to, imports into and
exports from the United States, Canada, Mexico, the United Kingdom
and/or the European
Union);
|
|
|
●
|
the
negotiating process surrounding, as well as the final terms of, the
United Kingdom's exit from the European Union, which could lead to
a sustained period of economic and political uncertainty and
complexity whilst detailed withdrawal terms and any successor
trading arrangements with other countries are negotiated, finalised
and implemented, potentially adversely impacting economic
conditions in the United Kingdom and Europe more generally as well
as Diageo's business operations and financial performance (see more
detailed status on Brexit above);
|
|
|
●
|
changes
in consumer preferences and tastes, including as a result of
changes in demographics, evolving social trends (including any
shifts in consumer tastes towards small-batch craft alcohol, low or
no alcohol, or other alternative products), changes in travel,
vacation or leisure activity patterns, weather conditions, health
concerns and/or a downturn in economic
conditions;
|
|
|
●
|
any
litigation or other similar proceedings (including with tax,
customs, competition, environmental, anti-corruption or other
regulatory authorities), including litigation directed at the
beverage alcohol industry generally or at Diageo in
particular;
|
|
|
●
|
changes
in the domestic and international tax environment, including as a
result of the OECD Base Erosion and Profit Shifting Initiative and
EU anti-tax abuse measures, leading to uncertainty around the
application of existing and new tax laws and unexpected tax
exposures;
|
|
|
●
|
the
effects of climate change, or legal, regulatory or market measures
intended to address climate change, on Diageo's business or
operations, including on the cost and supply of
water;
|
|
|
●
|
changes
in the cost of production, including as a result of increases in
the cost of commodities, labour and/or energy or as a result of
inflation;
|
|
|
●
|
legal
and regulatory developments, including changes in regulations
relating to production, distribution, importation, marketing,
advertising, sales, pricing, labelling, packaging, product
liability, antitrust, labour, compliance and control systems,
environmental issues and/or data
privacy;
|
|
|
●
|
the
consequences of any failure by Diageo or its associates to comply
with anti-corruption, sanctions, trade restrictions or similar laws
and regulations, or any failure of Diageo's related internal
policies and procedures to comply with applicable law or
regulation;
|
|
|
●
|
the
consequences of any failure of internal controls, including those
affecting compliance with existing or new accounting and/or
disclosure requirements;
|
|
|
●
|
Diageo's
ability to maintain its brand image and corporate reputation or to
adapt to a changing media
environment;
|
|
|
●
|
contamination,
counterfeiting or other circumstances which could harm the level of
customer support for Diageo's brands and adversely impact its
sales;
|
|
|
●
|
increased
competitive product and pricing pressures, including as a result of
actions by increasingly consolidated competitors or increased
competition from regional and local companies, that could
negatively impact Diageo's market share, distribution network,
costs and/or pricing;
|
|
|
●
|
any
disruption to production facilities, business service centres or
information systems, including as a result of cyber
attacks;
|
|
|
●
|
increased
costs for, or shortages of, talent, as well as labour strikes or
disputes;
|
|
|
●
|
Diageo's ability to derive the expected benefits from its business
strategies, including in relation to expansion in emerging markets,
acquisitions and/or disposals, cost savings and productivity
initiatives or inventory forecasting;
|
|
|
●
|
fluctuations in exchange rates and/or interest rates, which may
impact the value of transactions and assets denominated in other
currencies, increase Diageo's cost of financing or otherwise
adversely affect Diageo's financial results;
|
|
|
●
|
movements in the value of the assets and liabilities related to
Diageo's pension plans;
|
|
|
●
|
Diageo's ability to renew supply, distribution, manufacturing or
licence agreements (or related rights) and licences on favourable
terms, or at all, when they expire; or
|
|
|
●
|
any failure by Diageo to protect its intellectual property
rights.
|
|
●
|
the
group financial statements contained in the annual report and
accounts for the year ended 30 June 2019, which have been prepared
in accordance with IFRS as issued by the IASB and as adopted for
use in the European Union, give a true and fair view of the assets,
liabilities, financial position and profit of the group;
and
|
●
|
the
Directors' Report contained in the annual report and accounts for
the year ended 30 June 2019 includes a fair review of the
development and performance of the business and the position of the
group and company, together with a description of the principal
risks and uncertainties that they
face.
|
From the UK :
|
+44
(0)330 336 9105
|
From the UK (free call):
|
0800
358 6377
|
From the USA :
|
+1
323 794 2093
|
From the USA (free call):
|
866
548 4713
|
From the UK :
|
+44
(0) 20 7660 0134
|
From the UK (free call):
|
0808
101 1153
|
From the USA:
|
+1
719 457 0820
|
From the USA (free call):
|
888
203 1112
|
Investor enquiries to:
|
Andy Ryan
|
+44 (0) 20 8978 6504
|
|
Hattie Radcliffe
|
+44 (0) 20 8978 4429
|
|
Vinod Rao
|
+44 (0) 20 8978 2402
|
|
|
|
|
|
|
Media enquiries to:
|
Jessica Rouleau
|
+44 (0) 7925 642 561
|
|
Clemmie Raynsford
|
+44 (0) 7590 810 800
|
|
Dominic Redfearn
|
+44 (0) 7971 977 759
|
|
Greg Dawson
|
+44 (0) 7568 131 101
|
|
|
|
|
Diageo plc
|
|
(Registrant)
|
|
|
Date:
25 July 2019
|
|
|
|
|
By:___/s/James
Edmunds
|
|
|
|
FILING SIGNATORY: James Edmunds
|
|
POSITION: Deputy Company Secretary
|