Key financials |
2011 Reported
(restated)£ million |
Exchange
£ million |
Aquisitions and disposals
£ million |
Organic movement
£ million |
2012 Reported
£ million |
Reported movement
% |
| Net sales |
2,703 |
(25) |
288 |
(17) |
2,949 |
9 |
| Marketing spend |
403 |
(4) |
30 |
10 |
439 |
9 |
| Operating profit before exceptional items |
796 |
(4) |
107 |
26 |
925 |
16 |
| Exceptional items |
(157) |
|
|
|
41 |
|
| Operating profit |
639 |
|
|
|
966 |
51 |
"The economy remains very uneven in Europe. We continue to deliver substantial sales and profit growth in Europe’s emerging countries of Russia, Eastern Europe and Turkey, as well as a good performance across Northern Europe. Clearly though, Southern Europe remains challenging. From a category point of view, scotch remained very strong in the emerging markets offsetting decline in Southern Europe. Smirnoff continued to grow in Great Britain and Captain Morgan continued to perform strongly with 18% net sales growth. Weaker Baileys performance was driven by the change in promotional strategy in Great Britain and the challenges in Southern Europe. Overall marketing campaign activity has been maintained and the reinvestment rate increased as we spent more behind scotch and emerging markets while improving effectiveness in Western Europe. In Turkey, the integration of Mey İçki has been completed successfully and the enhanced route to market will be a key growth driver as we bring our international brands to the expanding middle class consumer base there. Finally, the new operating model has delivered further efficiencies and improved operating margin."
Andrew Morgan, president, Diageo Europe
Brand performance |
Volume *
movement
% |
Organic net sales movement
% |
Reported net sales movement
% |
| Key markets and categories |
|
|
|
| Europe |
(1) |
(1) |
9 |
| Western Europe |
(3) |
(3) |
(4) |
| Russia and Eastern Europe |
14 |
16 |
13 |
| Turkey |
7 |
28 |
983 |
| |
|
|
|
| Spirits |
- |
1 |
17 |
| Beer |
(3) |
- |
(1) |
| Wine |
(5) |
(10) |
(5) |
| Ready to drink |
(8) |
(7) |
(7) |
| |
|
|
|
| The strategic brands:** |
|
|
|
| Johnnie Walker |
5 |
4 |
3 |
| Smirnoff |
1 |
5 |
4 |
| Baileys |
(9) |
(7) |
(8) |
| JεB |
(4) |
(7) |
(8) |
| Captain Morgan |
20 |
18 |
18 |
| Guinness |
(4) |
(2) |
(3) |
* Organic equals reported movement for volume except for: total Europe volume 12%, spirits 16%, wine (2)% and Turkey 1,081% reflecting the acquisition of Mey Icki this year and sale of Gilbeys in the previous year.
** Spirits brands excluding ready to drink.
