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25 JAN 2018

25 JAN 2018 Press release

Press release

2018 Interim Results, half year ended 31 December 2017

Strong performance reflects consistent and rigorous execution of our strategy

  • Reported net sales (£6.5 billion) and operating profit (£2.2 billion) were up 1.7% and 6.1%, respectively, as organic growth was partially offset by adverse exchange
  • All regions contributed to broad based organic net sales growth, up 4.2%, and organic volume grew 1.8%
  • Organic operating profit grew 6.7%, ahead of top line growth, as higher marketing investment was more than offset by efficiencies from our productivity programme
  • Cash flow continued to be strong and in line with last year, with net cash from operating activities at £1.2 billion and free cash flow at £1 billion
  • Basic eps of 82.2 pence was up 36.3%. Pre-exceptional eps was 67.8 pence, up 9.4%, driven by higher organic operating profit and lower finance charges
  • The interim dividend increased 5% to 24.9 pence per share

Ivan Menezes, Chief Executive, commenting on the results said:

“These results demonstrate continued positive momentum from the consistent and rigorous execution of our strategy. We have delivered broad based improvement in both organic volume and net sales growth. We have increased investment behind our brands and expanded organic operating margin through our sustained focus on driving efficiency and effectiveness across the business.

By consistently delivering on our six strategic priorities, Diageo continues to get stronger: we have better consumer insight through superior analytics, improved execution on brand and commercial plans and have embedded everyday efficiency across the business through our productivity initiatives. This has enabled continued growth, improved agility, and consistent cash flow generation.

Our financial performance expectations for this year remain unchanged. We are confident in our ability to deliver consistent mid-single digit top line growth and 175bps of organic operating margin improvement in the three years ending 30 June 2019.”

ENDS

Enquiries

Investor enquiries to:

Andy Ryan
+44 (0) 20 8978 6504

Pier Falcione
+44 (0) 20 8978 4838

Rohit Vats
+44 (0) 20 8978 1064

Sharon Rolston
+44 (0) 20 8978 1219

investor.relations@diageo.com

Media enquiries to:

Jessica Rouleau
+44 (0)20 8978 1286

Clemmie Raynsford
+44 (0)208 978 1221

Bianca Agius
+44 (0) 20 8978 1450

Dominic Redfearn
+44 (0) 20 8978 2749

press@diageo.com

About Diageo

Diageo is a global leader in beverage alcohol with an outstanding collection of brands across spirits, beer and wine categories. These brands include Johnnie Walker, Crown Royal, J&B, Buchanan's and Windsor whiskies, Smirnoff, Cîroc and Ketel One vodkas, Captain Morgan, Baileys, Don Julio, Tanqueray and Guinness.

Diageo is a global company, and our products are sold in more than 180 countries around the world. The company is listed on both the London Stock Exchange (DGE) and the New York Stock Exchange (DEO). For more information about Diageo, our people, our brands, and performance, visit us at www.diageo.com. Visit Diageo’s global responsible drinking resource, www.DRINKiQ.com, for information, initiatives, and ways to share best practice.

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