Annual Report 2024

We are global leader in Total Beverage Alcohol (TBA) and one of the world’s most successful brand builders. Our ambition is to create one of the best performing, most trusted and respected, consumer products companies in the world.

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Annual Report 2024 (16.4MB) ESG Reporting Index 2024 (13MB)

Chair and Chief Executive’s statements
Performance highlights
Our brands
Market overview
Strategic priorities
Sustainability performance
Our ESG reporting approach
Case studies
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Chair's statement

“Despite the global economic and political headwinds we face, the Total Beverage Alcohol (TBA) industry remains an attractive and exciting sector. TBA has grown at a 4.4% CAGR over the past decade as measured by IWSR(1), and international spirits has grown at 5.1% over the same period, while premium beer where Guinness competes has also grown ahead of TBA.”

Javier Ferrán, Chair

Chair's statement

Chief Executive's statement

“Fiscal 24 was challenging for Diageo and for the broader industry, with the unwinding and normalisation following the Covid-19 super-cycle and the ongoing macro and geopolitical backdrop. Total Beverage Alcohol however remains a highly attractive sector which will deliver sustainable long-term growth and generate shareholder value.”

Debra Crew, Chief Executive

Chief Executive’s statement

Performance highlights

Financial performance

Non-financial performance

Notes

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(1) See definitions and reconciliation of non-GAAP measures to GAAP measures on pages 227-235.

(2) Net sales are sales less excise duties.

(3) Includes recommended final dividend of 62.98c.

△ Within PricewaterhouseCoopers LLP’s (PwC’s) independent limited assurance scope – see pages 258-261 of this Annual Report. For Reporting boundaries and methodologies, see pages

238-257.

Unless otherwise stated in this document, percentage movements refer to organic movements. For a definition of organic movement and reconciliation of all non-GAAP measures to GAAP measures, see pages 227-235. Share refers to value share. Percentage figures presented are reflective of a year-on-year comparison, namely 2023-2024, unless otherwise specified.

Starting 1 July 2023, in line with reporting requirements, the functional currency of Diageo plc changed from sterling to US dollar which is applied prospectively. Diageo also decided to change its presentation currency to US dollar with effect from 1 July 2023, applied retrospectively, as it believes that this change will provide better alignment of the reporting of performance with its business exposures. Please see more information on page 166 under Accounting information and policies.

Whether you’re heading out...

Smirnoff Spicy Tamarind won a Double Gold Medal at the San Francisco World Spirits Competition in April

In Europe, Guinness 0.0 net sales and volume more than doubled in fiscal 24 and it is now available on draught in more than 1,500 outlets in Ireland

Casamigos got consumers in the summer spirit with its terrace takeover on-trade activations in Great Britain

In April, Tanqueray No. TEN announced a season of bartender residencies across the globe to showcase exceptional cocktails

Our Brands

or hosting at home...

Ketel One vodka and Mr Black combine to make the ultimate Espresso Martini cocktail

We welcomed summer 2024 in style with the launch of the limited edition Cîroc Limonata, available in North America and across Europe

This fiscal, we launched Diageo's first alcohol-free dark spirit, Captain Morgan Spiced Gold 0.0%

Gordon’s Premium Pink partnership with British media personality Maya Jama, centred on bringing friends together

Our brands

Market Overview

Market overview and investment case

Total Beverage Alcohol (TBA) is a highly attractive and exciting consumer category. TBA is resilient and growing; and the spirits category is growing even faster. TBA has grown at 4.4% CAGR in the 10 years through to 2023, and international spirits has grown at 5.1% over the same period.(1)

_{(1) IWSR, 2023.}

Consumers are choosing spirits

Diageo sees a long-term trend of consumers choosing to switch to spirits from beer and wine, driving volume growth for spirits. This growth is supported by favourable population demographics, the increasing size of the middle class in key markets globally and strong premiumisation trends. These are expected to continue into the future.

People drinking better, not more

Spirits' long-term value growth is also driven by premiumisation as consumers want to drink better, not more. In the last 10 years, premium and above spirits grew from 26% of category value to almost 35%. Super-premium plus spirits have grown in value more than two times faster than other price tiers in the category. This price tier gained 700 basis points of share of international spirits retail sales value (RSV) since 2013.₍₁₎

Long runway for growth

In 2021, we set out our ambition to grow TBA share by 50% from 4% to 6% by 2030, and we remain confident that we will achieve this. With only 4.5% value share of TBA(1) currently, we have significant headroom for sustainable long-term growth

Delivering our Growth Ambition

Our Growth Ambition is our evolved strategy to win in fiscal 25 and beyond and to deliver the next phase of sustainable growth.

Through the Growth Ambition we will continue to focus on delivering on four key strategic outcomes that are now embedded in the business: providing efficient growth; delivering consistent value creation; building credibility and trust; and ensuring that our people and high-performing teams are fully engaged.

Delivering our strategy

Growth Ambition

Purpose accordian button

Celebrating life every day, everywhere

Ambition accordian button

To create one of the best performing, most trusted and respected consumer product companies in the world

Strategy accordian button

Unleash the power of our brands and portfolio to lead and shape consumer trends executed with operational excellence

BRANDS AND PORTFOLIO

Whisk(e)y and tequila
Winning local portfolio
Guinness growth

Comsumer Trends

Premiumisation
Recruitment
New occasions

Operational excellence

Evolve brand building muscle Commercial excellence
Everyday efficiency

Enablers accordian button

Building a more Digital Diageo

Diverse and engaged talent with a focus on culture

Spirit of Progress and doing business the right way from grain-to-glass

Outcomes accordian button

Achieve quality TBA share of 6% by 2030

Efficient growth

Consistently grow organic net sales, grow operating profit, deliver strong free cash flow

Consistent value creation

Top-tier total shareholder returns, increase return on invested capital

Credibility and trust

Trusted by stakeholders for doing business the right way, from grain-to-glass

Engaged people

High-performing and engaged teams, continuous learning, inclusive culture

Sustainability performance

Performance against our Spirit of Progress

Spirit of Progress, our ongoing ESG action plan, addresses the most significant environmental and social opportunities and risks Diageo faces. It has three priorities to promote positive drinking, champion inclusion and diversity and pioneer grain-to-glass sustainability. Doing business the right way underpins everything we do.

‘Spirit of Progess’ in action Spirit of Progress targets

Our ESG reporting approach

Reporting transparently on the ESG issues that affect our business, and that our business creates, plays a vital role in delivering our strategy. It helps us to manage ESG risks, take opportunities and promote sustainable development everywhere we live, work, source and sell.

Our ESG reporting suite aims to provide comprehensive and comparable disclosures for a broad range of stakeholders. As well as publishing our integrated Annual Report and ESG Reporting Index each year, we also submit non-financial information to benchmarking and index organisations, including those listed on the Awards and ranking page of our website.

The non-financial reporting space is evolving quickly. We are committed to continually evaluating and improving our approach and to actively tracking emerging ESG regulation, frameworks and good practice. Since launching our Spirit of Progress ESG action plan, we have set out to help create a more inclusive and sustainable world, creating a positive impact in our company, and for our society.

ESG Reporting Index 2024