Key financials | 2010 Reported
£ million | Exchange
£ million | Aquisitions and disposals
£ million | Organic movement
£ million | 2011 reported
£ million | Reported movement
% |
|---|
| Net sales | 3,306 | (25) | (58) | 101 | 3,324 | 1 |
| Marketing spend | 472 | (3) | (1) | 34 | 502 | 6 |
| Operating profit before exceptional items | 1,170 | (12) | (1) | 98 | 1,255 | 7 |
| Exceptional items | (38) | | | | (23) | |
| Operating profit | 1,132 | | | | 1,232 | 9 |
"While overall consumer confidence remains subdued we have seen some recovery and, importantly for our business, this recovery has been stronger in the premium, and especially the super premium, segments. Against this background we have focused on value creation. We have reduced the level of promotional activity, invested behind our premium brands and driven strong growth through innovation. The result has been that volume has been maintained while net sales grew 3%. Focus on supply efficiencies and better top line mix led to gross margin improvement. Overheads were reduced as marketing was increased and operating profit grew 8%. We have put in place improvements to our sales structure and distribution footprint that will drive further efficiencies and even better alignment with our wholesalers, all of which will enhance our strong platform."
Ivan Menezes, president, Diageo North America
Brand performance | Volume *
movement
% | Organic net sales movement
% | Reported net sales movement
% |
|---|
| Key countries and categories | | | |
| North America | - | 3 | 1 |
| United States | - | 3 | - |
| Canada | 3 | 3 | 8 |
| | | | |
|---|
| Spirits | - | 4 | 3 |
| Beer | 1 | 2 | 2 |
| Wine | (4) | (1) | (21) |
| Ready to drink | (3) | (3) | (4) |
| | | | |
|---|
| The strategic brands:** | | | |
| Johnnie Walker | (2) | 1 | - |
| Smirnoff | - | (1) | (2) |
| Baileys | 1 | - | (1) |
| Captain Morgan | (2) | (2) | (2) |
| Jose Cuervo | 4 | 3 | 2 |
| Tanqueray | - | 1 | - |
| Crown Royal | 1 | 3 | 2 |
| Ketel One vodka | (1) | - | (1) |
| Buchanan's | 37 | 41 | 39 |
| Cîroc | 124 | 128 | 126 |
| Guinness | 3 | 4 | 3 |
* Organic equals reported movement for volume, except for wine where reported movement was (19)% due to disposals in the year.
** Spirits brands excluding ready to drink.
