Diageo plc have increased their recommended full year dividend by 5% to 103.48 cents per share.
Other financial highlights include:
- Reported net sales of $20.3 billion declined 1.4% due to an unfavourable foreign exchange impact and organic net sales decline, partially offset by hyperinflation adjustments. Reported operating profit grew 8.2% and reported operating profit margin grew 262bps, primarily due to the positive impact of exceptional operating items partially offset by a decline in organic operating margin.
- Organic net sales declined $129 million or 0.6%, positive price/mix of 2.9pps was more than offset by a 3.5% volume decline, primarily driven by a 21.1% decline in their Latin America and Caribbean region (LAC). Organic operating profit declined by $304 million or 4.8%, of which $302 million was attributable to LAC; organic operating margin contracted 130bps.
Excluding the impact of LAC:
- Organic net sales grew $330 million or 1.8%, driven by price/mix of 3.9pps, partially offset by a 2.1% volume decline. A decrease in organic net sales in North America of 2.5% was more than offset by growth in Africa, Asia Pacific and Europe. Organic operating profit declined 0.1%, and organic operating margin contracted 56bps.
- Diageo grew or held total market share in over 75% of total net sales in measured markets, including in the US.
- Net cash flow from operating activities increased by $0.5 billion to $4.1 billion. Free cash flow increased by $0.4 billion to $2.6 billion.
- Completed $1.0 billion return of capital programme announced on 1 August 2023 through share buybacks.
- Leverage ratio of 3.0x as at 30 June 2024, Diageo remains committed to its target leverage ratio of 2.5x - 3.0x.
