PRINT PAGE
Back
PRESS RELEASE31 Jul 2013

Preliminary results, year ended 30 June 2013 Download file

Results show Diageo is a strong business getting stronger

Results summary

  • Net sales growth of 5%, driven by 4 percentage points of positive price/mix
  • Operating profit growth of 8%, driven by 0.8 percentage points of margin expansion
  • Marketing investment up 5%, to 15.7% of net sales, focused on the strategic brands
  • Strong performance in North America with net sales up 5% and operating profit up 9%
  • Emerging markets' net sales are 42% of Diageo's business, following 11% net sales growth and acquisitions which added £233 million
  • Emerging markets operating profit up 18%, as increased scale led to operating margin expansion
  • Acquisition of the Ypióca brand in Brazil in August 2012
  • Free cash flow was £1.5 billion, after making a £400 million contribution to the UK pension scheme
  • Growth of 11% in eps pre-exceptional items, to 104.4 pence per share
  • Board recommending a 9% increase in the final dividend
  • Increased stake in Shuijingfang and acquired the major interest in USL since the year end

Ivan Menezes, Chief Executive, commenting on the year ended 30 June 2013

"These results reflect Diageo's strengths. We have delivered 5% net sales growth reflecting the strength of our US spirits business and continued double digit growth in the emerging markets, despite weakness in some markets. Price increases in each region, positive mix in North America and Latin America and the rigour we have in managing our cost of production and controlling our overheads drove significant expansion in operating margin.

The effectiveness of our marketing campaigns remains a competitive advantage for us and this year we have seen these campaigns extend the leadership of our brands in many markets during the year. This has been a key driver of our performance in scotch, our biggest and most profitable category, especially for Johnnie Walker which is now a 20 million case brand. Innovation is driving growth in every region, with our biggest launches in US spirits where we continue to lead the innovation agenda in the industry. Elsewhere, the investments we have made to enhance our routes to market in Africa, Latin America and Eastern Europe have driven strong growth.

The breadth of our good performance is reflected in the strength of the cash flow, in our double digit eps growth and a recommended 9% increase in the final dividend. This year we have again made a strong business stronger and we remain on track to deliver our medium term guidance."

Related media

PRESENTATION
2013 preliminary results announcement investor presentation Download file
31 Jul 2013

2013 preliminary results announcement investor presentation  READ MORE...

PRESENTATION
2013 preliminary results investor presentation script Download file
31 Jul 2013

2013 preliminary results investor presentation scriptREAD MORE...

PRESENTATION
2013 preliminary results investor Q&A transcript Download file
31 Jul 2013

2013 preliminary results investor Q&A transcriptREAD MORE...

FACTSHEET
2013 preliminary results factsheet Download file
31 Jul 2013

2013 preliminary results factsheetREAD MORE...

PRESENTATION
2013 preliminary results media presentation Download file
31 Jul 2013

2013 preliminary results media presentationREAD MORE...

PRESENTATION
2013 preliminary results media Q&A transcript Download file
31 Jul 2013

2013 preliminary results media Q&A transcriptREAD MORE...

PRESS KIT
2013 preliminary results press kit
31 Jul 2013

2013 preliminary results press kitREAD MORE...

PRESENTATION
F14 Preliminary Results Overview Download file
31 Jul 2014

F14 Preliminary Results Overview READ MORE...

PRESENTATION
2014 Preliminary Results Investor Relations Overview Download file
31 Jul 2014

2014 Preliminary Results Investor Relations OverviewREAD MORE...

PRESS RELEASE
Preliminary results, year ended 30 June 2014 Download file
31 Jul 2014

Preliminary results, year ended 30 June 2014READ MORE...

Back

Resource Finder ?

This resource finder searches all resources within the News and Media section of the site. Filter the resources on the page using the toolbar.