Diageo plc have declared an interim dividend of 40.50 cents per share will be paid to holders of ordinary shares and US ADRs on register as of 1 March 2024. The ex-dividend date is 29 February 2024. This represents an increase of 5% on last year's interim dividend. The interim dividend will be paid to holders of ordinary shares and US ADRs on 17 April 2024. Holders of ordinary shares will receive their dividends in sterling unless they elect to receive their dividends in US dollars by 15 March 2024. The dividend per share in pence to be paid to ordinary shareholders will be announced approximately two weeks prior to the payment date and will be determined by the actual foreign exchange rates achieved by Diageo buying forward contracts, entered into during the three days preceding the announcement. A dividend reinvestment plan is available to holders of ordinary shares in respect of the interim dividend and the plan notice date is 15 March 2024.
Other financial highlights include:
◦ Reported net sales of $11.0 billion declined 1.4% or $158 million, due to a $167 million unfavourable foreign exchange impact and an organic net sales decline of $67 million or 0.6%, driven by a $310 million or 23% decline in Latin America and Caribbean (LAC).
◦ Excluding the impact of LAC, reported net sales grew $72 million or 0.7%, and organic net sales grew $243 million or 2.5%, driven by Asia Pacific, Africa and Europe, partially offset by a $64 million or 1.5% decline in North America which improved sequentially from the second half of fiscal 23.
◦ The decline in LAC was driven by a strong double-digit net sales growth comparator as well as lower consumption and consumer downtrading due to macroeconomic pressures in the region.
◦ Reported operating profit declined 11.1% to $3.3 billion, and reported operating profit margin contracted 329bps due to lower organic operating margin and a negative impact from exceptional operating items.
◦ Organic operating profit declined by $205 million or 5.4%, of which $234 million was attributable to LAC; organic operating margin contracted 167bps.
◦ Excluding the impact of LAC, organic operating profit grew by $29 million or 0.9%, and organic operating margin contracted 53bps, driven by increased marketing investment.
◦ Net cash flow from operating activities increased by $0.7 billion to $2.1 billion. Free cash flow increased by $0.5 billion to $1.5 billion, driven by disciplined working capital management and the positive impact of lapping one-off cash tax payments from the prior year.
