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Western Europe

Key financials

2012 Reported
(restated)£ million
Exchange
£ million
Aquisitions and disposals
£ million
Organic movement
£ million
2013 Reported
£ million
Reported movement
%
Net sales 2,345 (36) 1 (90) 2,220 (5)
Marketing spend 355 (8) 1 (20) 328 (8)
Operating profit before exceptional items 717 (8) 1 (20) 328 (8)
Exceptional items 43       (31)  
Operating profit 760       625 (18)

"Western Europe continued to be a challenging trading environment. Our Southern European markets and Ireland faced another very tough year and net sales declined 11%. Trading in Great Britain was resilient as double digit growth in reserve brands coupled with growth from innovation and improved performance from Smirnoff offset a 9% decline in ready to drink and a 3% decline in Guinness. Benelux, and Germany and Austria grew net sales double digit mainly driven by the strong performance of our scotch and rum brands.

Marketing investment, while lower overall, was focused on the biggest opportunities primarily on our strategic brands, Captain Morgan and Tanqueray as well as on Guinness which made share gains in the last quarter in Great Britain and Ireland. We increased marketing investment on Cîroc, Ketel One vodka, Zacapa, and Johnnie Walker and consequently reserve brands continued to be an area of significant growth, up double digits. Overall we are addressing the challenges we see in Southern Europe and Ireland and we are capturing growth in the stronger markets of Western Europe."

John Kennedy, President, Diageo Western Europe

  Organic volume movement *
%
Organic
net sales movement
%
Reported
net sales movement
%
Key markets and categories      
Western Europe (3) (4) (5)
       
Spirits (2) (3) (4)
Beer (6) (5) (7)
Wine (13) (7) (7)
Ready to drink (13) (8) (9)
       
The strategic brands:**      
Johnnie Walker (2) (1) (3)
JεB (18) (24) (26)
Smirnoff 2 (1) (2)
Captain Morgan 17 15 13
Baileys (4) (6) (7)
Guinness (5) (3) (4)

* Organic equals reported movement for volume except for spirits (1)% and ready to drink (14)%.

** Spirits brands excluding ready to drink.

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