Diageo reports operating profit of £2,118 million and 13% organic growth in operating profit from premium drinks, PBET of £2,043 million and EPS of 43.6 pence.
|
Organic growth 2002 |
2002 £million |
2001 £million |
|
Turnover |
8% |
11,282 |
12,821 |
|
Operating profit |
9% |
2,118 |
2,127 |
|
Premium drinks operating profit |
13% |
1,768 |
1,432 |
|
EPS (Reported) |
|
43.6pence |
42.4pence* |
* Restated for FRS 19 - Deferred tax
The above numbers are before goodwill amortisation and exceptional items.
HIGHLIGHTS
> Operating profit from continuing operations £1,928 million (£1,609 million in 2001)
Premium drinks continues to perform strongly with:
- Organic volume growth of 4%
- Organic net sales growth of 9%
- Organic marketing growth of 10%
- Organic operating profit growth of 13%
- Reported operating margin improved by 1.4 percentage points to 20.3%
> Driven by growth in the global priority brands:
- Organic volume growth of 8%
- Organic net sales growth of 13%
> Seagram transaction closed on 21 December 2001:
- Volume in six months to 30 June 2002, 7.5 million equivalent cases
- Net sales £451 million
- Operating profit £130 million
> Agreement to sell Burger King announced on 25 July 2002
> Exceptional items before taxation, net gain of £305 million
> £158 million improvement in economic profit to £494 million
> Return on invested capital improved by 1.3 percentage points to 12.4%
> Final dividend 14.5 pence per share, up 8%, making 23.8 pence per share for the full year
> Free cash flow of £792 million
> £1.7 billion returned to shareholders via share buy-back programme during the year
Paul Walsh, Chief Executive Officer of Diageo, commenting on the year ended 30 June 2002 said:
'In 2002 Diageo delivered on the promises it made. With the completion of the disposal of Pillsbury and the acquisition of the Seagram spirits and wine businesses, we have met our strategic targets and our transformation to a focused premium drinks company is substantially complete. With the achievement in premium drinks of 9% growth in net sales and 13% growth in operating profit, we have delivered on our organic performance targets in the year. In common with other global businesses, Diageo has faced a challenging economic environment in some markets and unique world events. Despite this background the operational excellence and superior financial performance of Diageo's world leading premium drinks business has created shareholder value.'
Annual report and AGM
Diageo's annual report will be sent to shareholders at the beginning of October 2002. The Annual General Meeting will be held at The Queen Elizabeth II Conference Centre, Broad Sanctuary, Westminster, London SW1P 3EE at 2.30 pm on 29 October 2002.
Copies of the results presentation to be made to analysts and investors are available upon request. The announcement and the presentation will be on the Diageo website www.diageo.com from 9.00 am on 5 September 2002.
Explanatory notes
Unless otherwise stated, percentage movements given throughout this statement for volume, turnover, net sales, marketing expenditure, contribution after marketing and operating profit are organic movements (at level exchange rates and after adjusting for acquisitions and disposals) for continuing operations. They are before goodwill amortisation and exceptional items. Comparisons are with the equivalent period last year.
Volume has been measured on an equivalent servings basis to nine litre cases of spirits. Equivalent cases are calculated as follows: beer in hectolitres divide by 0.9, wine in nine litre cases divide by 5, ready to drink (RTD) in nine litre cases divide by 10.
Net sales are turnover less excise duty.
This document contains forward-looking statements that involve risk and uncertainty. There are a number of factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements, including factors beyond Diageo's control. Please refer to page 29 - 'Cautionary statement concerning forward-looking statements' for more details.
For further information
Diageo's preliminary results presentation to analysts and investors will be broadcast at 9.30 am (BST) on Thursday 5 September 2002 on Diageo's internet home page at the address: www.diageo.com. Prior to the live link, the presentation slides will also be available to download from Diageo´s home page.
You will be able to listen to a live broadcast of the presentation and questions and answers session. The number to call is:
From: UK/Europe: +44 (0) 20 8781 0576
A press conference will take place beginning at 12.30 pm (BST) on 5 September and will be broadcast live from a link on www.diageo.com.
The results presentation, webcast to analysts and investors and the media conference webcast will be available on the Diageo website until mid-October 2002.
Diageo management will host a teleconference to US and European analysts and investors at 3.00 pm (BST) on Thursday 5 September. Call this number to listen or ask a question:
From: UK/Europe: +44 (0) 20 8401 1043
US/Canada: +1 415 217 0050
The teleconference will be available on instant replay from 5.00 pm (BST) and will be available until 19 September 2002. The number to call is:
From: UK/Europe : +44 (0) 20 8288 4459 Access code: 175552
US/Canada : +1 703 736 7336 Access code: 175552
An interview with Paul Walsh is available in video, audio and text from 7.00 am (BST) on www.diageo.com and www.cantos.com.
High resolution images for the media can be down loaded free of charge from NewsCast at www.newscast.co.uk.
The full text of the announcement is available to download in RTF format: here