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Europe

Key financials

2010 Reported
£ million
Exchange
£ million
Aquisitions and disposals
£ million
Organic movement
£ million
2011 reported
£ million
Reported movement
%
Net sales 2,759 (32) (25) (88) 2,614 (5)
Marketing spend 412 (5) (1) (16) 390 (5)
Operating profit before exceptional items 859 (12) (7) (62) 778 (9)
Exceptional items (53)       (157)  
Operating profit 806       621 (23)

"The very challenging trading environments of Spain and Greece are well understood and led to the overall decline in net sales for Europe this year. However, excluding these two markets, net sales in the region grew. Strong performances from our scotch and rum brands led to double digit organic net sales growth in Russia, Eastern Europe and Germany, while Great Britain, France, Benelux and Italy were resilient, with single digit growth. Throughout the year we focused our marketing spend on the biggest opportunities. We made the second year of 'Arthur's Day' bigger than the first, extending it to more cities with greater investment. We rolled out Captain Morgan into new markets with significantly increased spend and we continued to fuel the growth and premiumisation of spirits in Russia and Eastern Europe. At the same time, we took further steps to improve our efficiency. We reduced our overhead costs in the second half and the changes we have made to our operating structure in Western Europe will drive further efficiencies in our business. The acquisition of Mey İçki in Turkey will increase our exposure to faster growing categories and markets in fiscal 2012."

Andrew Morgan, president, Diageo Europe

Brand performance

Volume *
movement
%
Organic net sales movement
%
Reported net sales movement
%
Key countries and categories      
Europe (2) (3) (5)
Great Britain - 2 2
Ireland (1) (5) (11)
Iberia (18) (18) (21)
Greece (33) (38) (39)
Russia 9 21 23
       
Spirits (1) (4) (5)
Beer (5) (4) (7)
Wine (1) 11 2
Ready to drink (4) (8) (9)
       
The strategic brands:**      
Johnnie Walker (3) (5) (6)
Smirnoff (4) (11) (12)
Baileys - (2) (3)
JεB (5) (8) (9)
Captain Morgan 40 38 39
Guinness (5) (4) (5)

* Organic equals reported movement for volume, except for wine where reported movement was (5)% reflecting the disposal of the Gilbeys wine business and Barton & Guestier and in Ireland where reported movement was (2)% reflecting the disposal of Gilbeys.

** Spirits brands excluding ready to drink.

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